Ceinsys Tech is a leading technology solutions provider in the IT-enabled sector. The company is acclaimed for its expertise in geospatial engineering and other engineering services and solutions. The company offers a broad range of geospatial intelligence services, including data creation, data analytics, decision support systems, enterprise web solutions, and more.
Ceinsys Tech was recently rebranded to CS Tech AI, but the corporate name remains Ceinsys Tech Limited.
In this article, we are going to analyse the Q3 FY25 earnings conference call (held on February 12, 2025) in detail. Let’s dive into the details:
Company Overview and Strategic Direction
In FY ’22, the Company strategically expanded into mobility sector by acquiring Allygrow Technologies, a specialized engineering service provider with a strong international presence. This acquisition allowed the Company to enhance its capabilities in manufacturing technology and mobility engineering solutions covering the entire product development process and industrial automation for diverse sectors such as 2 and 3-wheelers, passenger cars, commercial vehicles, and off-highway equipment.
With offices in India, the United States, the United Kingdom and Germany, the Company combines local expertise with a broad international reach.
The Company is venturing into software product development and emerging technologies through a new vertical focused on artificial intelligence, machine learning and embedded electronics.
- This vertical emphasizes advancement in metaverse, edtech, gaming and mobility
Financial and Operational Performance (Q3 and 9 Months FY2025)
| metric | Q3 FY2025 | 9 Months FY2025 |
| Operational Revenue | INR 112 crore (grow 79% YOY) | INR 276 crore (grow 58% YOY) |
| EBITDA | INR 21 crore (grow 102% YOY) | INR 51 crore (grow 62% YOY) |
| EBITDA Margin | 19.14% | 18.61% |
| Net Profit | INR 17.8 crore (grow 71% YOY) | INR 41 crore (grow 77% YOY) |
| PAT Margin | 15.92% | 15.02% |
order book
As at the end of December, the total order book stands at around INR 1,390 crores. Of these projects in the water domain account for almost INR 1,189 crores and Geospatial & Enterprise Solutions services contribute to INR 199 crores.
improvement in working capital cycle
The company have reduced the working capital cycle from 237 days in March ’23 to 190 days in March ’24 and in this period of 9 months to 124 days.
Fundraising
The company has raised INR 235 crore in September 2024 via equity and warrants (used as : 70% for acquisitions, 20% for expansion, 10% for working capital).
As on 31 December 2024, comapany’s total cash surplus is around INR 125 crore, with a net operational cash surplus of around INR 20 crore.
Human Resources
The company have recruited 384 new employees during the financial year 24-25 till date. Of these, 277 are technically qualified to execute new projects, while the others will help enhance support functions.
Major Contracts
some of the major contracts are
- the river linking project in Maharashtra valued at INR 381 crores for consulting services.
- an IoT-based project with Maharashtra State Water and Sanitation Mission worth INR 332 crore.
- a service provider contract for implementing an integrated GIS enterprise for CIDCO, which was valued at INR 29 crore.
- selection of a system integrator for integrated digital transformation of MHADA valued at INR 28 crore.
some notable announcements in the Budget session that will benefit the company are:
- The extension of Jal Jeevan Mission till 2028, intended for 100% coverage on the various water schemes where CS Tech has a huge role to play.
- Starting of National Geospatial Mission using PM Gati Shakti, which will facilitate modernization of land records, urban planning and design of infrastructure projects in which all the areas we have our expertise.
- Building up on July 2024 budget proposals for incentivizing urban sector reforms related to governance, municipal services, urban land and planning.
Question and Answer Session Highlights
can you share on the new vertical like Meg-Nxt, which is focusing on metaverse, edtech and gaming and mobility, right? So, what are the initial goal and time line for this vertical?
Meg-Nxt is our play in the product development business. What we are understanding all these industries, whether it is gaming or edtech or anything, it is basically using geospatial data in a different form. And what Meg-Nxt is trying to do is capture that data and whichever source that data is captured, process it and make it available as a data for those industries. And as Kaushik said, we have done a tremendous development on that side, and we have already started using initial beta versions for our internal consumption. So, that work is going in full swing.
To answer your question, is there a time line we have committed to launch it as a product?
Answer is no. But is it available for our internal use? The answer is yes, and we already started seeing the benefits of that and reaping benefits of that in the margin expansion.
regarding the data center initiative, what is the current plan and the roadmap?
On the data center, company is still at an exploratory stage. We have not committed resources to go on that. Whatever is required for exploration, that’s the only amount company is committing. So, once company make the final decisions and plans and time lines, management will definitely communicate.
regarding the revenue from geospatial engineering segment. So, as we are seeing that there is a decline from INR 543 million to INR 489 million Q-o-Q. So, could you elaborate on the key factors behind this decline? Is this decline a result of project delay or reduced order inflow or increased competition?
The segmental revenue distribution we started from the last quarter or a quarter before that. Our aim in building the Company is to go for more technology solutions and less on the pure-play geospatial data crunching side. That’s how we believe we can build a company which is sustainably profitable, and we will be able to maintain and expand our margin.
So, the conclusion which you are drawing that our geospatial engineering revenue is going down is actually a conscious call to increase more and more revenue on the solution side to improve the margins and to improve the profile of the Company. So, it’s not a negative sense in that sense, it’s a positive sense. It’s a project mix, which is actually helping us improve the Company’s profitability and the numbers.
regarding the current order book is around INR 13,900 million,how confident is the Management in converting it into revenue over the next fiscal years?
Whatever is the project duration, if your question is, are we going to deliver INR 1,300 crores next year? The answer is no, because this project has a duration given, and Management is 100% confidence of delivering to the order book as per the project schedule. There is no even iota of doubt in our mind.
you have raised equity and share warrants. So, how do you plan to allocate these funds between organic and inorganic growth opportunities?
The first tranche of INR 105 crore is available. The total amount is towards the allocation, which is already proposed in the EGM resolution where 70%, 20% and 10% is the allocation. 70% is towards acquisition, 20% is towards expansion, and 10% is to our working capital. So, as of now, as we already clarified, we are on the evaluation of various opportunities which we are doing to take the inorganic growth. And therefore, once the opportunities are available, we will be utilizing the funds based on the allocation, which is already approved. So, presently, they are not utilized. They are available for the acquisition.
is there any acquisitions in pipeline?
So, we have been inviting a few opportunities to evaluate. We have, as of now, almost 4 opportunities which are being evaluated and 2 of them are on the final stages. Hopefully, within next 2, 3 months, we should be able to give you some update on this.
how exposed is Ceinsys Tech to ongoing tariff wars between global markets?
So, as of now, I think we don’t have any impact because of any of the implications it may have, which presently there is none because our presence is in the international market, we are based at U.S., we are based at UK and Germany. And we deliver projects from there itself. We don’t kind of do a product export, so I don’t think there is anything to do with tariffs on the export or import. And therefore, we don’t see any impact on that.
can you elaborate on the Company’s initiative in AI Meta and gaming? And what are the biggest technological challenges with DeepSeek that could threat to the Company’s growth in AI space?
So, DeepSeek is a kind of agent, so we don’t see any issue for DeepSeek trying to disrupt our business. That’s the simplest answer on that.
On the AI front, what we are doing, sometime back, we spoke about Meg-Nxt, all of that data usage in the different formats and different verticals is based on artificial intelligence. We have a team already in that segment, and we are building those competencies. Over a period of time, in coming 18, 24 months, we will start expanding that into other segments of our business as well.