Allsec Technologies Reports Strong Growth in CXM, Mixed Results in EXM

Allsec Technologies Limited, a global leader in Employee Experience Management (EXM) and Customer Experience Management (CXM) solutions, announced its financial results for the first quarter of the fiscal year 2025 (Q1 FY25).

CXM Business Thrives

The company’s CXM vertical showcased robust growth, with revenue surging by 32.8% year-on-year (YoY) to reach ₹94.8 crore. Both domestic and international operations drove this growth. Notably, the international business contributed ₹70.7 crore, reflecting a 39.2% YoY increase. Margins in the CXM segment also expanded significantly, rising by 55.9% YoY to ₹14.5 crore.

EXM Business Faces Challenges

In contrast, the EXM vertical encountered headwinds. Revenue declined by 4.4% YoY to ₹34.5 crore, primarily due to a 54.1% YoY drop in the EXM Compliance business. While the EXM Payroll business witnessed a more modest 10.9% YoY growth, overall margins contracted by 2.7% YoY to ₹10.8 crore.

Key Highlights

CXM emerges as the growth driver, with strong performance across both domestic and international markets.

• EXM faces challenges due to a decline in the compliance business.
• The company’s overall employee count increased by 18.3% YoY to 4,636.
• EXM Payroll processed 40.7 million employee records, up 9.7% YoY.

Allsec’s Q1 FY25 results highlight the divergent performance of its two key business segments. While the CXM business continues to demonstrate strong momentum, the EXM segment requires strategic attention to address the challenges impacting its growth and profitability.

Commenting on the results, CEO Mr Naozer Dalal said, “We are pleased to report robust growth across Revenues, EBITDA & PAT YoY and expect to continue the same momentum into subsequent quarters. Focused efforts on revenue growth and an increase in the international mix to 62% aided in healthy operating margins. We also completed the divestment of our LLC business in this quarter”

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