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📊 Affle (India) Limited Q3 & 9M FY2025 Earnings Analysis & Insights 🚀
1️⃣ Financial Highlights 📈
📌 Consolidated Financial Performance
💰 Revenue from Contracts with Customers:
📅 Q3 FY25: ₹6,017 million (+20.6% YoY, +10.8% QoQ)
📅 9M FY25: ₹16,641 million (+24.5% YoY)
📉 EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization):
📅 Q3 FY25: ₹1,314 million (+35.9% YoY, +15.9% QoQ)
📅 9M FY25: ₹3,492 million (+33.3% YoY)
📊 EBITDA Margin: 21.8% in Q3 FY25 (vs. 19.4% in Q3 FY24)
🟢 Profit After Tax (PAT):
📅 Q3 FY25: ₹1,002 million (+30.5% YoY, +8.9% QoQ)
📅 9M FY25: ₹2,788 million (+32.9% YoY)
📊 PAT Margin: 16.1% in Q3 FY25 (vs. 15.1% in Q3 FY24)
📍 Segment & Regional Performance 🌍
🌏 Market-wise Revenue Growth (YoY for Q3 FY25):
📈 India & Emerging Markets: +19.7%
📈 Developed Markets: +23.3%
📊 Revenue Split:
🇮🇳 India & Emerging Markets: 73.6%
🌎 Developed Markets: 26.4%
💹 CPCU (Cost Per Converted User) Business 🏆
⚡ Conversions:
📅 Q3 FY25: 103.3 million (+22.5% YoY)
📅 9M FY25: 288.8 million (+17.6% YoY)
📊 Average CPCU (₹/User):
📅 Q3 FY25: ₹57.8 (+1.4% YoY)
📅 9M FY25: ₹57.3 (+2.5% YoY)
💵 CPCU Revenue:
📅 Q3 FY25: ₹5,968 million (+25.4% YoY)
📅 9M FY25: ₹16,561 million (+31.8% YoY)
2️⃣ Growth & Profitability Analysis 💹
📊 Sales & Growth Trend
📈 Revenue CAGR (9M FY21 - 9M FY25): 45.1%
📈 EBITDA CAGR: 38.4%
📈 PAT CAGR: 38.3%
💰 Profit Margins 📊
🟢 Gross Margin: Improved due to strong growth in CPCU & developed markets.
📊 EBITDA Margin: 21.8% (vs. 19.4% in Q3 FY24)
🟢 PAT Margin: 16.1% (vs. 15.1% in Q3 FY24)
💵 Return Ratios & Liquidity 💧
📊 Return on Equity (ROE): 15.2%
📊 Return on Capital Employed (ROCE): 16.2%
💳 Gross Debt/Equity: 0.05x (very low debt burden ✅)
💰 Operating Cash Flows: ₹2,837 million (steady growth 📈)
3️⃣ Solvency, Liquidity & Valuation Ratios 💎 (CMP ₹1666)
📊 Trail EPS: 26.34 📈
📊 Trail P/E Ratio: 63 which is High, reflecting growth potential & Fair PE of 40 📈 F_PE is also 61 as F-EPS could be 27.
📉 EV/EBITDA: Competitive within the ad-tech space ⚖️
🟢 Debt-to-Equity Ratio: 0.05x (Extremely Healthy ✅)
💧 Current Ratio: Strong liquidity management 💪
🛡️ Interest Coverage Ratio: High, indicating strong profitability 💹
4️⃣ Near-Term & Long-Term Outlook 🔮
⏳ Near-Term (Q4 FY25)
✅ Continued CPCU growth with higher conversion rates 📈
✅ Margin expansion due to operating leverage 💵
✅ Market diversification—growth in developed markets contributing significantly 🌍
🔭 Long-Term (FY26 & Beyond)
🚀 AI-driven ad-tech expansion supporting revenue growth 🤖
💰 High ROE & ROCE indicate strong value creation 📊
🌎 Expansion into new geographies & verticals to sustain double-digit revenue growth 📍
5️⃣ Conclusion & Investment Perspective 📌
✔️ Strong revenue & profit growth, making Affle an attractive growth stock 📈
✔️ Steady CPCU growth confirms sustainable business expansion ✅
✔️ Healthy balance sheet with low debt and strong cash flow 💰
✔️ Valuation at CMP ₹1666 suggests continued upside due to increasing earnings, but investors should monitor global ad-tech trends 📊
📢 Disclaimer & Disclosure Statement
Important Investor Advisory Notice
This research analysis is for informational purposes only and should not be considered as financial, investment, or legal advice. The information provided herein is based on publicly available financial reports, market data, and our analysis. Investors are advised to exercise caution and discretion before making any investment decisions.
