💰 Financial Performance

Revenue Growth by Segment

Total segment revenue fell 54.23% to INR 29.21 Cr in FY25. Segment performance: Software & E-Governance (INR 1.15 Cr, -63.21%), Learning Solutions (INR 27.17 Cr, -54.02%), Wind Power (INR 0.80 Cr, -49.15%), and Hotel (INR 0.09 Cr, +146.56%).

Geographic Revenue Split

Domestic revenue (India) contributed 99.6% (INR 34.31 Cr), while overseas revenue (USA) contributed 0.4% (INR 0.14 Cr). Overseas revenue fell 80.1% YoY due to lower work orders.

Profitability Margins

Net Profit Margin improved slightly from 7.43% to 7.84% in FY25. However, Return on Equity (ROE) decreased from 3.36% to 1.63%, and Return on Capital Employed (ROCE) fell from 4.67% to 4.47% due to lower absolute net profit.

EBITDA Margin

Operating profitability (PBILDT) margin was historically healthy at 21% in FY23; current margins remain stable despite a 48.97% drop in total income to INR 34.45 Cr.

Capital Expenditure

Ongoing capex projects are primarily funded through internal accruals. The company may rely on external debt for future projects if cash accruals remain limited.

Credit Rating & Borrowing

CARE reaffirmed 'CARE BBB-; Stable' for long-term facilities and 'CARE A3' for short-term facilities in June 2025. Total bank facilities are INR 21.50 Cr.

⚙️ Operational Drivers

Raw Materials

IT Hardware and stock-in-trade for ICT projects represent approximately 45.05% of total revenue (based on FY24 figures of INR 30.41 Cr).

Import Sources

Software execution facilities are located in the USA, while ICT hardware is primarily sourced domestically for Indian government contracts.

Capacity Expansion

Current workforce stands at 537 employees as of March 31, 2025. Ongoing capex projects are aimed at fulfilling service delivery for government contracts.

Raw Material Costs

Purchase of stock-in-trade was INR 30.41 Cr in FY24 (45.05% of revenue). Procurement is project-specific, tied to the execution of tender-based government contracts.

Manufacturing Efficiency

Inventory turnover ratio decreased from 516.01 to 328.56 in FY25, reflecting a significant decrease in annual sales volume.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth is driven by securing state government tenders for ICT and Computer Aided Learning (CALP/CATP) projects, leveraging a 20-year track record in Rajasthan and Bihar.

Products & Services

ICT education services, e-governance software, wind power generation, and hotel services.

Brand Portfolio

Compucom Software Limited, CSL Infomedia Private Limited.

Market Expansion

The company focuses on domestic expansion through state-level government digitization projects in India.

🌍 External Factors

Industry Trends

Increasing adoption of digital-first education and Computer Aided Learning (CALP) in public schools; the industry is shifting toward large-scale government-led ICT deployments.

Competitive Landscape

Intense competition in IT services and learning solutions from both local and national ICT providers.

Competitive Moat

Durable advantage through a 20-year track record and established relationships with state governments, creating high barriers to entry for new competitors.

Macro Economic Sensitivity

Highly sensitive to government fiscal policies and education budget allocations for ICT infrastructure.

Consumer Behavior

Shift toward digital tools in public education sectors, driving demand for the Learning Solutions segment.

Geopolitical Risks

Domestic political instability or changes in state government leadership could disrupt 99.6% of the company's revenue stream.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by state government tender rules and Ind AS 34 financial reporting standards.

Environmental Compliance

Operates in the renewable energy sector via wind power generation (INR 0.80 Cr revenue in FY25).

⚠️ Risk Analysis

Key Uncertainties

Fluctuating earnings (revenue fell 48.97% YoY) due to the timing of government contract execution and income recognition peculiarities.

Geographic Concentration Risk

99.6% of revenue (INR 34.31 Cr) is concentrated in India, primarily within specific states like Rajasthan.

Third Party Dependencies

Critical dependency on state government departments for contract awards and timely payments.

Technology Obsolescence Risk

Risk of ICT solutions becoming outdated; requires continuous workforce training for 537 employees to maintain service standards.

Credit & Counterparty Risk

Long collection periods from State Governments pose a liquidity risk, though currently mitigated by internal accruals and low debt.