Cyber Media Research & Services Limited ($CMRSL)

Greetings, ladies and gentlemen, I'm Akash moderator for the conference call. Welcome to Cyber Media Research and Services Limited Q4 FY '20 Earnings Conference Call. [Operator Instructions]. Please note, this conference is being recorded. I would now like to hand over the floor to the Managing Director, Mr. Dhaval Gupta. Thank you, and over to you, sir.

Thank you very much, and a very good evening to all the investors. Thank you for taking out the time to join us for the call today. And before I proceed, I just want to mention that along with me today. Also on the call is Mr. Pradeep Gupta, the Chairman of the company, Mr. Krishna can Poshan, Director and CMR as well as Mr. Amit Singh, Company Secretary of the company. and the rest of the team is available here with me as well. So we are very eager for queries at the end of my statement. And yes, let's think take it forward. To begin with, the management of the company is very happy to share its results for financial year '25, '26. In the previous financial year, the company's performance has not been up to the mark. We have recorded this in the pars meetings, investor meetings as well. And then I mentioned with the investors that we will take necessary action to derive an correction. -- in this past year, the company has recorded its best-ever financial year performance. In FY '25, '26, revenue for the company grew to INR 91.6 crores, reflecting a year-on-year growth of 2.6%. This is in comparison to add an increase of 12% as per the MAR investable. The EBITDA registered was registered at INR 5.4 crores and a PAT of INR 3.5 crores. This reflects the year-on-year EBITDA growth of 35.3%. The growth in EBITDA shows a clear commitment towards not only top line growth but also improving our margin, an area that we have spoken about and committed to investors in the past calls as well. Ecil for quarter 4 of financial year 2526. The revenue stood at INR 25.6 crores compared to last year's figure of INR 18.6 crores. For the same time period, the EBITDA jumped to INR 1.35 crores drop for the quarter compared to 8,100,000 in the previous year. earnings per share jumped to 11.8% as of March 31, 2026. And this is in comparison with 7.91% on March 31, 2025. Our CMRF net debt ratio reduced to 0.26% again as of March 31, 2026. The debtor turnover remained similar to past years ago. And therefore, I am happy to report that the financial health of the company remains strong with adequate funds available to fuel current growth. The company not only retained its customer base, but also added a fair number of large new accounts during the year. Let me share some key highlights. MRs domestic business, the India business grew by 25.7% in revenue year-on-year. And this easily outpaced the industry growth enter -- our market research business, PMR, saw growth of over 40%. Overall, customer feedback for this steel remained at 4.6 out of 5 with -- so the MR team continued to work with fantastic consulting projects with 500 logos, including AWS, Qualcom, HP, Micron, among others. A couple of big wins for the tidis financial year for CMR nor Marathi and Congo, and we are expecting to continue to grow these accounts in this financial year and in the future as well. Moving to our digital marketing business. We added more than 50 logos in the past financial year here -- the Patent has built strong expertise in delivering programmatic and connected TV campaign. As you may all know, there has been a transition from linear TV towards connected TV. This is a major industry trend again. We've touched upon this in the past, and we're in a very, very good position to grab on to a lot of these campaigns. -- and are enabling many brand activations. In the publisher monetization business, we rolled out new product offerings within Oxford. This has helped increase our client retention and revenue -- the team continues to expand its footing, both in India as well as Abad. Additionally, we enhanced our engagement and revenue with Google and Togmatic as well. And now we're working with both those international platform on more revenue potential and more revenue streams. Continue to talk about our product miles, which has been a lead into the SaaS area. The GTM for that has started in the past quarter. We have already onboarded 5 new logos. These are mostly in the DTC and the education space. And our -- and now we are in discussions with many large e-commerce brands, and we're very expected adding them to the Canal growth. The deal we are at adding more and more toys and marketing resources to this overall initiative as well. Let me now talk a little bit about technology. I mean AI is something that is a very common topic and how it's impacting businesses. And so let me spend a little bit of time giving you an update on that. We have deployed a number of AI tools and agents across the organization. The company is in process of rolling out its own AI infrastructure -- and this is not limited to any particular assumption this is across functions like finance, accounts, sales, marketing, operations and so on. results in Galaxy and Offshore as is utilizing AI for product development using tools such as cloud antigravity and pose -- and this is also playing a role in the front turn with the customers by giving them a much more senior experience. The company internally has also deployed -- this is a continuously helping us improve our productivity and ensuring that there is all streamline of process that is happening across the entire organization. growth pipeline for 2020 financial year 26, 27, remained very strong. We expect to continue outpacing the industry in the coming year despite geopolitical challenges. So there has been a cost various -- at a macro level, we have been hearing a lot of news coming out, which is negatively impacting ad dollars -- having said that, we are very seeing positive growth based on the services and products that we are rolling out, and we expect this to be a strong -- moving on to merger. The merger with CMI the application for this has been vetted and forwarded by NFC and BFCs and is now awaiting to the approval. Our strategy towards merging CMRF with CMI is working, a showing an enhanced outlook for current quarter as well as the financial year. This provision should hold good for both the company and its investors in the shop as well as the Lantern. Furthermore, management -- the management expects the combined entity to also benefit their cost optimizations. In conclusion, since its IPO, CM RSL has continued its growth path with a well-defined product road map and excellence in process MRL is on to pass towards long term go. Despite the geopolitical uncertainty and the macroeconomic impact on Indian economy. The management expects to continue growing the team and the business not only in India, but across international markets as well. And we expect to do this at a faster rate than the current industry growth that has been. o those were some comments from myself as well as the management team of PMRSL.,ould like to open the call for questions. Akash, to can you please share the number of investors who have the...

First question comes from the line of Mr. Bhavesh Choudhary from Wealth Vichar.

Yes, you're -- so hello congratulations on a decent performance in this quarter. So my first question is like, can you share an update on the merger time line? So in the last con call, management has guided for around 6, 9 months. So what is the expected condition right now?

So the time line remains at about 6-odd months. And the reason for that is that we have submitted the necessary application as far as [ BS MSCs ] concerned, we had raised some query and we age -- and so there is a cycle of that that is going on. And now it has been submitted with [ SEBI. ] And so once they're subject to the approval, once the approval is up, we should be able to move ahead on it quickly. Just after that, SEBI has also raised the quarry, and we have again addressed that and share them with them the relevant responses. So like it will complete around like end of this year. That is correct. That is the whole subject to the [indiscernible] approval from SEB.

So like for the last one year, management has been seeing less [indiscernible] in the GPM pace. So can you share some number like active clients and the current revenue contribution also like how is the FY '27 pipeline looking in the terms of flight on holding and revenue potential?

So in terms of PMI, the GTM, we have, I think, last time was mentioning that we will be initiating GDMinthe coming quarters. So quarter 4 onwards, the JDM activities have been initiated with more aggression. And as I mentioned, we have added logos already in the last quarter in quarter -- there are about 100-odd brands that we have onboarded. And we are now working on a pipeline, strong pipeline where we are speaking with multiple large B2C brands in how [indiscernible] solve their data challenges. So what's the update that I can share at this stage. Yes, there is a there is now sort of head of sales, marketing efforts and so on that we have hired, and we will continue to add more sales resources to push towards -- to make a push for this product.

So like what is the revenue potential looking for FY 2017? Can you share some like your view on this?

Yes. So Rawas in the past, we have enough share forward-looking statements. We are looking at on building up to 100 logos as far as this financial year is concerned on that the aim at to do. And so yes, I think that should give you a sense of how we are looking at this in an ambitious way.

And so can you please share the revenue mix between the advertisement business and publisher business and CMR in the last year?

So the advertising business would have contributed to about 50% of the overall revenues. The CMR and the data analytics business would have contributed 15% of the revenues and the remainder, EUR 35 million would have been some from the publisher monetization business. This is vis-a-vis as far as the top line is concerned. Having said that, as you would also be aware, the mix from a profitability point of view, so these businesses will be a bit different. So in the research business as well as the publisher monetization business, we would have had double-digit margin, whereas in the advertiser business, we would have had a high single-digit margin.

So like how is the growth in all the 3 business from the previous year -- so great question. As far as compared to [indiscernible] concern, and I'm very happy to share all 3 businesses saw growth -- the market in search and data analytics business, fiber media research had over a 40% growth year-on-year with -- while maintaining strong margins. The publisher business also had double-digit growth compared to previous year and so did the advertiser business. So all 3 businesses are growing. And in terms of the current quarter as well as the outlook for this year, as we have mentioned in the past, we are looking at -- are not only growing faster than the industry, but this year is, let me say, started off on a positive month. Can you please tell me the advertisement business growth in percentage terms?

Excuse me a second. The advertisement business growth would be closed -- would be about 10% for the period -- compared to the previous [financial year].

So and what percentage of revenue comes from the international market also like with the rupee depreciating against the dollar, how much like it can benefit -- can it bring to the margin or the bottom line?

So in terms of year-on-year comparison, our international business was relatively flat. having said that, the appreciation in all is having that epical impact of or revenue is concerned. So whatever has been, let's say, the appreciation of about 6%, 7% looking the last 6, 7 months, that's what is reflecting as growth there as well. So it's -- we are, having said that picked up, thanks to [ OXO ] more clients already in the first quarter of this year. And we are expecting that to have positive impact, not only from a growth point of view, but also from the exchange rate point of view for our Singapore operations.

So like you did you expect okay, to say like it will give us like 6%, 7% to 8% growth from this year, like current year? And how are you seeing FY '27 in terms of overall growth and cash flow improvement?

Yes. So overall growth for FY '17 is looking very positive. As I mentioned in my notes earlier, we have started the year on a strong note, on a good note. And we are looking at a year where we outpaced the industry growth by a good margin.

Like received have increased significantly, and the operating cash flow remains weak despite strong PAG growth. So what are the reasons behind higher receivable days and by when we can expect normalization in cash conversion and working capital?

So see working capital as well as we've not seen -- I mean, the working capital that we had, let's say, for the previous financial year continues. There are no cash flow confirm at all in the company, even our better has been maintained similar to what has been there in the past year. So is there any specific information that you are looking on a...

Like receivables have increased from INR 2.3 crores to INR 7.7 crores this year.

INR 2.3 crores to INR 77 crores for this year.

Yes.

So now, can you confirm this, these numbers, please or the receivables have gone up from INR 2.34 crores to INR 7.7 crores? Just wanted to sort of tell you this is that we go by Chairman of the company? -- that against the INR 7.5 crore term loan that we had our drawdown is -- sorry, INR 6.5 crores of loan, our drawdown is only 4.74%. And actually, the drop-down limit of INR 35 crores. The actual drawdown is only INR 70 lakhs. So therefore, as against the total sanction of INR 10 crores, our actual average utilization is only INR 5 crores. So we are, cash flow wise, we have no issues of any sort of a growth. As far as trade receivables at fair sorry INR 26.75 crores in -- on 31st March 25 and 34.5% on 31st March. So that's why I said that those early numbers that you gave seem to be something seems to be wrong in those numbers.

Okay. So we can move on. We can talk it later. Hello?

Is a increase in trade receivables from INR 6.75 to 4.5, which is INR 7 crores is the increase in the [indiscernible, right? In last year, the increase was about INR 2 crores. So actually -- but since we have the we have increased our revenue also, therefore, the receivables increase is very much in line with whatever is the is the number of days actually number of 123 was last year 228 -- so again, 128 days, which is 123 days. So it's actually better than before.

Like there is any NPAs in the receivables?

No.

There's no NPA.

So I think I'll -- let me in on this. So there are advertisers that campaign and business that we have pooled in within March. And there are games that are coming in the course of time which has already been collected. So therefore, this is a point under control. There are no concerns as far as it will confirm.

Okay. Look, management has been highlighting the strong capabilities and AI lead opportunities. So like last 22 years, and during this period, we have also had a new business line like CMT. But if we compare FY '24, FY '26 number, the growth still looks like relatively flat. So when do you expect these AI initiatives and new business additions to start meaningfully reflecting in revenue and profitability?

So in terms of revenue, we have already seen a positive impact through better servicing the client in a much better way. We are seeing that there is significantly more stickiness across products like Oxo ad, even for the agency business. So that's one side of it. And it's also helping us streamline internal processes. So the cost impact of that is actually where we are able to control costs much, much better. There is a trade-off because the AI can be in various situations expensive. But we are creating a very good balance between making sure that we're controlling those expenses and actually reducing the cost and bringing in relevant operation. So this will continue now for the long term. And with products like CML, that is where, of course, it's straightaway starts to reflect in the revenue growth of the company as well.

Okay. Can you also share an update on CMS's performance over the last year and how the business is progressing currently?

Sorry, can you repeat the question one, please?

Can you share an update on Casperformance, Ivaldi in diluted performance over the last year and how the business is progressing right now?

So this call is focused on CRS and as you know on the managing aorta. I think PMI has also had a good performance as -- and I think we will be putting out an update in sales in that regard. So that's sort of a broader update at par that [idniscernible].

Okay. So like post-merger on a conservative basis, what kind of growth guidance should shareholders expect for the combined entity over the next 2 to 3 years?

So in terms of the growth expectations, we are looking -- we have already started seeing benefits of taking steps in that direction. In terms of our competitiveness in the market in grabbing more clients and grabbing more business and being able to provide clients with sort of cross-sell upsell opportunity. This is starting to show in terms of the performance that we have delivered this year, and we are very confident that this will continue as far as this financial year and the coming financial years are concerned. Again, in terms of revenue guidance, I don't want to give -- we are not putting out specific to [indiscernible] but for this financial year, we have started off on a very good month, and we expect this year to be a very positive growth yes.

Okay. Thank you, or for all the answers. So if there is any questions, I will back in the queue. Thank you.

Thank you. thank you, everyone.

[Operator Instructions].

Akash, there are no further questions, perhaps we can wrap up to now.

Okay. There are no further questions. I now like to hand over the floor to the management for closing comments. Okay.

So again, unless thank you so much for continue to take with the company. We are having have had a very good last financial year. We expect the good growth in the current quarter and financial year as well. And so with that, I would like to give a very big thank you to all the investors for continuing to be a Cyber Media Research & Services. and yes, in case there are any way that investors may have later to feel free to reach out to IT, and we would be happy to share with you whatever information we can. with that, thank you very much.

Thank you, sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using the SBA's conference call service. You may disconnect your lines now. Thank you, and have a pleasant day.