Bluspring Enterprises Limited, recently demerged from Quess Corp, held its first earnings call as an independent entity, reporting a 13% year-on-year revenue growth to INR 777.00 crores. However, the company faced margin pressures, with EBITDA declining 11% to INR 24.00 crores.

Segment Performance

Facilities and Food Services

• Revenue grew 13% year-on-year to INR 476.00 crores
• Contributed 60% of total revenue
• Added 22 new contracts with an Annual Contract Value (ACV) of INR 73.00 crores
• Seasonal softness in the food business due to educational institutions' closure in June and July

Telecom and Industrial Services

• Revenue increased 20% year-on-year to INR 152.00 crores
• Telecom vertical alone grew 32% year-on-year
• Slight quarter-on-quarter dip due to seasonal factors and delayed network rollouts

Security Services

• Revenue grew 8% year-on-year to INR 149.00 crores
• Headcount increased 10% year-on-year and 3% quarter-on-quarter
• Now holds PSARA licenses across 24 states

Foundit (AI-powered job search platform)

• Revenue grew 6% quarter-on-quarter to INR 20.00 crores
• Organic job postings grew to 131%
• Recruitment search and six-month active users grew 11% and 9% respectively

Financial Highlights

Strategic Initiatives and Outlook

• Targeting EBITDA margin improvement from 3.10% to 4.00% by year-end
• Long-term goals include 6% EBITDA margins and 20% return on equity
• Investing in new central kitchen in Bangalore, expected to be operational by Q3
• Launched "Smart Homes" program and a new training center for security guards
• Revamped foundit product with improved UI/UX and search relevance
• Aiming for foundit to breakeven by Q3 FY26

Management Commentary

Kamal Pal Hoda, CEO of Bluspring Enterprises, stated, "With the demerger now behind us, we are stepping forward with a renewed sense of purpose, a sharper vision, and a strong commitment to create long-term value."

Regarding margin pressure, Hoda explained, "The decline is due to seasonal softness in our high-margin Food and Telecom business, the impact of wage inflation, and strategic investments in leadership teams post-demerger."

The company remains committed to delivering growth at 3x of GDP, achieving 6% EBITDA margins, and 20% return on equity in the long term.

Bluspring Enterprises aims to position itself as a diversified infrastructure management company, leveraging its national reach and breadth of services to drive growth and profitability in the coming quarters.

Bluspring Enterprises Limited, a leading infrastructure management services company, has announced its financial results for the first quarter. The company reported a 13% year-over-year increase in consolidated revenue, reaching ₹777.00 crores, up from ₹687.00 crores in the same quarter of the previous year. However, the company experienced a slight quarter-over-quarter decline of 1% from ₹783.00 crores in the previous quarter.

Financial Highlights

• EBITDA decreased to ₹24.00 crores with a margin of 3.1%, down from ₹27.00 crores (3.9% margin) in the previous year, representing an 11% decline.
• Adjusted Profit After Tax (PAT) fell 5% year-over-year to ₹13.00 crores, with a margin of 1.7%.
• Earnings per share (EPS) stood at ₹0.90, down 5% from the same quarter last year.

Segment Performance

Bluspring's performance varied across its different business segments:

Management Commentary

Kamal Pal Hoda, Executive Director & CEO of Bluspring Enterprises, commented on the results: "We are pleased to report a steady start, with robust revenue of ₹777.00 crore and EBITDA of ₹24.00 crore (excluding investments), driven by disciplined execution and continued strength across our core businesses."

He added, "While Facility & Food Services and Telecom & Industrial Services delivered double-digit Y-o-Y revenue growth on the back of healthy demand and strong execution, Security Services maintained a stable trajectory with 8% growth. Given the inherent seasonality in our high-margin businesses, particularly in the first quarter for Telecom and Food Services, we saw a decline in EBITDA margins."

Business Highlights

• The company added 22 new contracts in Facility and Food Services with an Annual Contract Value (ACV) of ₹73.00 crores.
• Telecom and Industrial Services added 4 contracts with an ACV of ₹10.00 crores.
• Security Services expanded its associate base by 10% year-over-year to 21,762.
• The company's total headcount grew by 4% YoY to 87,378.

Outlook

Hoda expressed confidence in the company's future, stating, "As we advance through our first year of operations, we are intensifying our focus on driving sales, enhancing operational efficiency and harnessing technology to deliver deeper impact for our clients. Backed by our seasoned leadership, deep sector expertise, and integrated delivery model, we are well positioned to create long-term value for all our stakeholders."

Bluspring Enterprises aims to achieve 3x of GDP organic growth, a 6% EBITDA margin, and a 20% Return on Equity (ROE) as its long-term objectives.

The company got listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on June 11, marking a significant milestone in its corporate journey.

Note: All financial figures are in Indian Rupees (₹).