Creative Newtech Ltd (CNL) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Good afternoon, ladies and gentlemen. On behalf of Creative Newtech Limited, we extend a warm
Moderator: to all participants joining us for the Q2, half year ended FY '27 earnings conference call. We sincerely appreciate your presence as we discuss this quarter and half year's performance, highlight significant achievements, and share our vision for the future. This conference call may include forward-looking statements that are based on the company's beliefs, assumptions, and expectations as of the date of this call. These statements are not assurances of future results and are subject to risks and uncertainties that remain difficult to foresee. As a gentle reminder, all participant lines will remain in listen-only mode until we open the floor for question-and-answer session. Please note that this conference is being recorded. If you need any assistance during the call, please press star, followed by zero, to signal the operator. With that, it is my privilege to hand the call over to Mr. Ketan Patel, Chairman and Managing Director of Creative Newtech Limited. Thank you, and over to you, sir.
Ketan Patel (Creative Newtech Limited): Good afternoon, everyone. Welcome to Creative Newtech Limited's earning conference call for the second quarter and half year ended September 30, 2026. I would like to begin by thanking all of you for joining us today. Joining me on the call are Mr. Abhijit Thakur, our CFO; Mr. Vijay Advani, our Whole-time Director; and [Inaudible] Consultants, our Investor Relations team. Every quarter brings an opportunity to reflect on our progress, but some periods carry greater significance in shaping the future of business. For Creative Newtech, the first half of FY '27 has been one such defining chapter. Last year, we spoke about building deeper capabilities, entering high potential technology categories, and preparing Creative Newtech for opportunities of greater scale. Today, I'm pleased to share that we are making meaningful progress in bringing those ambitions to life. India is entering an important phase of technology-led development. Digital connectivity is expanding, infrastructure is becoming more intelligent, and the demand for integrated technology solutions is growing across government, institutions, and enterprise. At Creative Newtech, we see this transformation as an opportunity to apply our experience, partnership, and market capabilities we have built over three decades to a much larger business landscape. During the first half, we strengthened our participation in government infrastructure through significant development. We received an Advance Work Order from BSNL for the BharatNet Middle Mile Network project in the Odisha Telecom Circle with an approximate total value of 3,194.83 crores. This represents a significant opportunity to participate in strengthening India's digital connectivity infrastructure. This development marks an important progression in our journey. They demonstrate the scale of opportunities we are pursuing and reinforce our commitment to building the execution capabilities required for complex technology infrastructure projects. Surveillance and intelligent security infrastructure remain another important area of focus. Last year, we discussed our ambition to deepen our presence in this ecosystem. Our proposed acquisition of Infinova (India) Private Limited takes this strategy forward, supporting our vision of building a 'Make in India' surveillance and technology platform. Our partnership with Ravel Electronics further strengthens our portfolio in fire and life safety technology, expanding our ability to address enterprise and institutional requirement through advanced security and safety solutions. We also continued developing our presence in drone technology. Our partnership with Drona Aviation expands opportunities in drone-based STEM education, while our association with Jupiter Electric Mobility strengthens our drone technology portfolio. Both developments support our participation in emerging technology applications. Alongside this strategic partnership, we achieved another important milestone with the launch of VOZOYO, our global consumer technology brand, under our wholly-owned Hong Kong subsidiary, Secure Connection Limited. For decades, we have helped global brands establish their presence across diverse markets. Now, with VOZOYO, we are building
Ketan Patel (Creative Newtech Limited): built and build markets. Wozoio gives us an opportunity to leverage that expertise in developing our own consumer electronics and smart lifestyle brand creating another avenue for long-term business growth. As I reflect on this development one thing becomes clear. Creative Newtech is expanding its participation across infrastructure, enterprise solutions, emerging technologies and consumer markets. Each opportunity builds on our existing strengths while adding new capabilities to our business. Equally important is the financial discipline supporting this expansion. Our operating cash flow stood at ₹351.24 crores during the first half reflecting strong cash generation and reinforcing our focus on financial efficiency. As we pursue larger opportunities disciplined capital allocation, working capital management and operational execution will remain central to our strategy. Looking ahead, our ambition is to convert the opportunities we have created into sustainable business growth. We remain focused on strengthening our capabilities, deepening strategic partnerships and building a technology business capable of participating in India's evolving infrastructure and innovation landscape. Last year we set our direction. The first half of FY '27 has brought meaningful opportunities to advance it. Our next priority is to turn this progress into consistent execution and lasting value creation. I want to thank our teams, customers, partners and shareholders for their continued confidence in Creative Newtech. With this I would now like to invite Mr. Abhijit Thakur, our CFO, to take you through the financial highlights for the quarter and half year. Thank you.
Abhijit Thakur (Creative Newtech Limited): Thank you, sir. Good afternoon, everyone. The financial highlights of H1 FY '27 tell an encouraging story of scale and profitability moving forward together. Creative Newtech has delivered stronger earnings, improved operating margins and substantial cash generation, reinforcing our ability to support business expansion with financial discipline. What is particularly encouraging is the pace of earnings growth relative to revenue. During the first half our EBITDA grew by 55.78% against total income growth of 16.55%. Accompanied by an improvement in operating margins this reflects meaningful progress in our earnings performance and the financial strength of our expanding business. The second quarter further strengthened this performance with healthy business activity across our technology portfolio supported by improved profitability and continued focus on operational efficiency. I will now take you through the key highlights of our consolidated financial performance. Please note that our financials are prepared in accordance with Ind AS guidelines. Looking at consolidated Q2 FY '27 results the company reported revenue from operations of ₹752.14 crores and total income of ₹754.80 crores reflecting a year-on-year growth of 14.43% in total income. The quarterly EBITDA stood at ₹40.11 crores registering a strong year-on-year growth of 50.70%. EBITDA margin improved to 5.31% compared to 4.04% in the corresponding quarter last year. Profit before tax stood at ₹30.12 crores. PAT for the quarter came in at ₹25.94 crores reflecting a year-on-year growth of 36.88% with PAT margin improving to 3.44% from 2.87%. Looking at consolidated H1 FY '27 results the company reported revenue from operations of ₹1,228.10 crores and total income of ₹1,231.65 crores registering a year-on-year growth of 16.55%. EBITDA for the first half stood at ₹65.01 crores recording a year-on-year growth of 55.78% with EBITDA margin improving to 5.28% from 3.95% in the corresponding period last year. Profit before tax stood at ₹46.82 crores while PAT reached ₹39.47 crores
Abhijit Thakur (Creative Newtech Limited): representing a year-on-year growth of 35.49%. PAT margin improved to 3.20% compared to 2.76% in H1 FY26. Another important highlight has been our operating cash flow performance with cash flow from operating activities reaching ₹351.24 crores during the first half. Our net working capital days stood at 45 days in H1 FY27, a significant improvement from 75 days in FY26. As we expand our participation in larger projects, our focus remains on maintaining healthy cash generation, efficient working capital management, and disciplined capital allocation to support sustainable growth. For Creative Newtech, the first half of FY27 reflects significant progress in overall performance with EBITDA growing considerably faster than revenue, improved profitability margins, substantial operating cash generation. These developments provide an encouraging financial foundation as we continue to expand our business and pursue opportunities of greater scale. As we move ahead, our financial priorities remain centered on maintaining this momentum through efficient operations, prudent capital management, and consistent execution, while continuing to create long-term value for our stakeholders. That concludes the financial overview for the quarter and first half of FY27. Thank you, everyone. We can take questions now.
Moderator: Thank you. We are now opening the floor for question-and-answer session. To ask a question, please press star and one on your touchtone telephone. To exit the queue at any time, you may press star and two. We encourage participants to use handsets for optimum audio clarity. We'll take a short moment while the question queue is being assembled. The first question is from the line of Mr. Sudhir Bheda from Bheda Family Office. Please go ahead, sir.
Sudhir Bheda (Bheda Family Office): Yeah. First of all, congratulations to Ketanbhai and his team for posting the excellent numbers. So, hearty congratulations, sir. Am I audible?
Moderator: Mr. Sudhir Bheda, please go ahead.
Sudhir Bheda (Bheda Family Office): Yeah. Am I audible? Hello? Hello? Hello? Hello? Hello? Am I audible? Hello? Hello?
Moderator: The next question is from the line of Rehan Saiyed from Trinetra Asset Managers. Please go ahead.
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