Xelpmoc Design & Tech , a professional and technical consulting services company, has announced its financial results for the first quarter. The company reported a mixed performance with revenue growth but a wider net loss.

Revenue Growth

Xelpmoc Design & Tech saw its revenue from operations increase to Rs 7.85 crore, up 11.2% quarter-on-quarter from Rs 7.06 crore in the previous quarter. This growth indicates a positive trend in the company's core business activities.

Total Income and Profitability

The company's total income for the quarter reached Rs 9.26 crore, compared to Rs 8.19 crore in the previous quarter, marking a 13% increase. However, Xelpmoc reported a net loss of Rs 18.82 crore, which is significantly higher than the previous quarter's loss.

Operational Highlights

During the quarter, Xelpmoc made several operational moves:

1. The company issued 39,500 equity shares upon conversion of stock options.
2. It granted 181,531 new options to employees under its stock option scheme.
3. Xelpmoc sold part of its equity investment on May 30, resulting in a reversal of cumulative fair value gain of Rs 99.99 crore.
4. The company's UK subsidiary was dissolved on May 13.

Investment Portfolio

As of June 30, the fair value of Xelpmoc's investments in portfolio companies stands at approximately Rs 531.80 crore. This represents a significant asset for the company, although it's important to note that this value can fluctuate based on market conditions and the performance of the invested companies.

Management Commentary

Mr. Sandipan Chattopadhyay, MD & CEO of Xelpmoc Design & Tech Limited, commented on the company's performance: "As guided earlier, we have now transitioned our business to serve the corporate sector. Our strategy emphasizes maximizing profitability by concentrating on the development and enhancement of our proprietary products and services, while also streamlining our expenses."

He added, "We are confident in our position to leverage the transformative wave of Artificial Intelligence, backed by our extensive knowledge in the field. Our proficiency in Data Science and Machine Learning equips us to overcome immediate obstacles and achieve sustained value over the long term."

Financial Analysis

A closer look at the financial data reveals:

1. Operating EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was Rs -16.40 crore, compared to Rs -15.30 crore in the previous quarter.
2. The company's expenses for the quarter were Rs 26.99 crore, slightly higher than the previous quarter's Rs 26.63 crore.
3. Employee benefits expense stood at Rs 16.05 crore, up from Rs 15.96 crore in the previous quarter.

Future Outlook

Xelpmoc is focusing on revenue generation from the corporate sector and aims to achieve profitability by leveraging its own products and services. The company has conducted pilot projects in automation of revenue reconciliation and compliance and is in the process of rolling out these products.

While the increased revenue is a positive sign, the widened net loss indicates that Xelpmoc is still in a growth and investment phase. The company's strategy of focusing on proprietary products and services, along with its expertise in AI, Data Science, and Machine Learning, positions it to potentially capitalize on the growing demand for advanced technology solutions in the corporate sector.

Investors and stakeholders will be watching closely to see how Xelpmoc's transition to serving the corporate sector and its focus on AI-driven solutions will impact its financial performance in the coming quarters.

Xelpmoc Design and Tech Limited , a professional and technical consulting services company, has announced a significant move in its investment portfolio. The company's board has approved the partial sale of its stake in Mihup Communications Private Limited for a substantial sum of ₹100.00 crore.

Transaction Details

The proposed transaction involves the transfer of 11,782 Series Seed Compulsorily Convertible Preference Shares (CCPS) of Mihup. These shares, with a face value of ₹1.00 each, will be sold at a price of ₹8,487.32 per share, totaling ₹100.00 crore.

Strategic Move

This decision represents a significant corporate action that is likely to impact Xelpmoc's financial position and investment strategy. Sandipan Chattopadhyay, MD & CEO of Xelpmoc Design and Tech Limited, expressed enthusiasm about the transaction, stating:

"This is a landmark transaction for Xelpmoc and validates our thesis of exiting startups post our targeted 7-year holding period. Consistent with our capital allocation priorities, we intend to utilize the proceeds from this transaction primarily to support organic growth and pursue value-creating investments in the field of AI, ML and data sciences."

Company Focus

Xelpmoc Design and Tech Limited specializes in providing professional and technical consulting services with a focus on product development, data science, and analytics. The company is particularly interested in building next-generation technology in Artificial Intelligence (AI) and Machine Learning (ML), with a keen focus on Natural Language Processing & Data Analytics.

Future Outlook

The partial sale of the Mihup investment aligns with Xelpmoc's strategy of supporting and exiting startups after a targeted holding period. The company plans to reinvest the proceeds to fuel its organic growth and further its pursuits in AI, ML, and data sciences.

This move underscores Xelpmoc's commitment to dynamic portfolio management and its focus on staying at the forefront of technological advancements in the rapidly evolving fields of AI and data analytics.