BLS International Services Ltd. delivered robust fourth quarter results that drove significant investor confidence. According to latest reports, the company's consolidated net profit surged 32% to ₹1.78 billion compared to the previous year. Revenue increased 18% to ₹8.15 billion from the previous year, demonstrating strong operational growth across key metrics. The company's total income reached ₹8.45 billion, up nearly 18% on year, while other income rose 22% to ₹304 million. However, total expenditure increased 16% to ₹6.41 billion, with cost of services rising nearly 15% to ₹3.92 billion, impacting the bottom line growth.
The company's profitability metrics showed consistent improvement despite challenging market conditions. As reported by Informist Media, EBITDA increased 17.84% to ₹2.04 billion from ₹1.73 billion in the previous year. EBITDA margin remained stable at 25.06% compared to 25.03% in the year-ago period, indicating effective cost management and operational efficiency. The margin in the visa business has increased from the previous year and is expected to sustain, according to Joint MD Shikhar Aggarwal in an interview with CNBC-TV18.
Joint MD Shikhar Aggarwal provided optimistic guidance for the company's future growth trajectory. According to Informist Media, Aggarwal stated that geopolitical tensions have a short-term impact and emphasized that margin in the visa business has increased from the previous year and is expected to sustain. The company will continue to target 20-25% growth in the next few years, with Schengen area demand continuing to grow steadily. The digital business has declined due to its recent acquisition, the executive noted, while the full revenue from the UIDAI contract will start accruing in the next six to 12 months.
Market response to the earnings announcement was extremely positive, with shares reflecting strong investor confidence in the company's prospects. According to Informist Media, shares of BLS International rose 9.5% to an over one-week high of ₹286.95 on the NSE, a day after the company reported strong March quarter earnings. Around 24 million shares changed hands, indicating strong buying momentum, which was 12 times the number of shares traded till the same time Tuesday. At 1310 IST, shares were trading 4% higher at ₹272.70, with the stock showing sustained positive momentum following the results announcement.
The company has outlined specific timelines for upcoming revenue streams from key contracts. According to Informist Media, full revenue from the UIDAI contract will start accruing in the next six to 12 months, providing a clear revenue pipeline for future quarters. This contract represents a significant growth opportunity for the company's diversified service portfolio. The company's growth in its India branded business and synergies from recent acquisitions will be key for future growth, as noted by analysts.
