Humansoft Holding Company K.S.C.P. (HUMANSOFT) Q4 FY2025 Earnings Call Transcript & Summary

Hello, everyone. This is Mirna Maher from EFG Hermes, and welcome to Humansoft's Fourth Quarter 2025 Results Conference Call. I'm pleased to be joined today by Mr. Mayank Baxi, Vice Chairman; and Mr. Anup Dhand, CFO. We will first start the call with a quick update from management, and then we'll open the floor for the Q&A session. Gentlemen, please go ahead.

Hello, everybody. Welcome to the human soft financial year 2025 Results Conference Call. I hope you and your loved ones are keeping safe. Thank you team at EFG for facilitating this call. I'm Mayank Baxi, Vice Chairman at Humansoft; and along with our CFO, Mr. Anup Dhand, together, we would like to briefly mention some of the key highlights and then run through the financial year 2025 financial highlights. And at the end, we will leave the floor open for questions and answers. At the outset, I would like to mention that any forward-looking statements or views discussed during this call are subject to risks and uncertainties. A that may cause the actual results to differ. Humansoft does not assume any obligation to update such views or statements nor make any announcements regarding any revised circumstances. The Board of Directors have recommended a cash dividend of 275 fils per share and this will be subject to the approval of the Annual General Meeting of the shareholders. Both our institutions, AUM and ACM continue to focus on enhancing students' overall development, reserving its economic achievements and leadership in the market. Subsequent to our Q3 2025 results call, several key events and achievements were made. AUM and ACM continue to embed sustainability-driven practices, strengthening long-term environmental and societal impacts, and the same was reflected on our rankings. QS sustainability rankings 2026 released in November 2025 ranked AUM as #1 in Kuwait and #509 globally, advancing from #818 in the previous year. Likewise UI GreenMetric World University Rankings 2025, released in December 2025, also rank AUM as #1 in Kuwait and the 176th globally and #5 in the region. Over the course 1 week. The AUM [indiscernible] Community came together at AUM Cultural Center to celebrate the achievements of the class of 2025. Graduation ceremonies were attended by management, faculty, staff and proud parents. Honoring the dedication, perseverance and success of our graduates. Several events were held on campus and students participation was enabled as part of our commitment to experimental learning and youth empowerment in a rapidly evolving technological landscape. Student-led innovation is fostered through technology-driven initiatives and the institutional local and global levels, engaging both university students and the wider youth community. One such event was AUM hosting the second edition of Robotics Kuwait 2025, bringing together over 500 school students. AUM continues to enrich connections and celebrate achievement through a diverse range of student-centered initiatives, spanning sports, entrepreneurship, leadership and community engagement. In line with the same, AUM students participated in World InterUniversity Championship 2025 in Barcelona and the AUM Padel team won a championship medal. AUM and ACM continue to remain as the institutions of first choice in the majors offered by them, and the rankings enable them to attract dedicated students and strengthen its leadership position in the higher education sector. Now I would like to invite Mr. Anup Dhand, CFO of Humansoft to give a brief about financial year 2025 financial highlights. Over to you, Mr. Anup.

Thank you, Mr. Baxi, and a good afternoon to all the attendees. I am Anup Dhand, CFO of Humansoft and I would like to present the financial highlights of FY '2025. Humansoft FY 2025 revenue was KWD 76.6 million as compared with FY 2024 revenue of KWD 79.2 million mainly due to a change in the number of enrolled students. FY 2025 EBITDA was KWD 38.8 million in comparison with FY 2024 EBITDA of KWD 43.1 million. FY 2025 net profit was KWD 35.5 million in comparison with FY 2024 net profit of KWD 40 million. Net profit margin for FY 2025 was 46%, and EBITDA margin for FY 2025 was 50%. The earnings per share was 265 fils during FY 2025 as compared to 298 fils during FY 2024. Humansoft had a net cash position of KWD 67 million as at 31 December 2025. Total equity was KWD 110.7 million as at 31 December 2025, and the return on average equity for FY 2025 amounted to 31%. Total assets was KWD 133.2 million as at 31 December 2025, and the return on average assets for FY 2025 amounted to 26%. Humansoft's fortress balance sheet, high return on average assets and high return on average equity provides protection and resilience and enables Humansoft to remain robust. With this, we now open the floor for questions and answers. We request that you please introduce yourself with your name and the institution you represent when you have any questions. Thank you. Over to you, Mirna.

[Operator Instructions] We will take the first question from [ Sawsan Abdullatif ]

This is [ Sawsan Abdullatif ] from [ SICO ] Bank. I have a couple of questions. If I may start with the dividend cut. What's the reason for cutting dividends, although you have sufficient cash and what should we expect going forward? And then my second question, any changes in the capacity of students? I think it's around 30,400. And what's your future CapEx plan? Thank you.

So as far as dividend is concerned, you would have noticed that the net profit for the current year has been lower than the previous year. And nonetheless, the dividend payout has been 105% of the profit. So I think going forward also, we'll have to on a year-to-year basis, look at the profitability, the working capital requirements and CapEx requirements. And accordingly, the future decisions will be made by the Board. As far as the capacity is concerned, there is no change in the capacity. It remains the same. And for CapEx as of now, except for the normal maintenance CapEx, there is no other major CapEx plan.

[Operator Instructions]

Mr. Baxi, just one question from my side. Any update on the new health science majors? When are they expected to be launched?

I cannot comment on the expectation, but we are pursuing and we will take up again on a priority basis. But as far as any time line, it's very difficult to indicate because it's been quite a long period and is spending and we have been pursuing.

Thank you, Mr. Baxi. We don't have any other questions. So back to you if you have any concluding remarks.

Thank you very much for sparing this time and attending our financial year 2025 analyst call and we'll stay in touch. Thank you very much.

Thank you everyone, for joining. This concludes today's call.