While you can see significant progress in our strategic focus areas, we have had operational headwinds in Q1. While our revenue grew 28% YoY in a seasonally weak quarter, we had pressure on our profitability. Our EBITDA and PAT margins are industry-leading even at Q1 levels, but it is lower than the levels we have operated at in the past. We have delivered 20%+ EBITDA for the past 5 quarters and that is the level we continue to aspire for. Our operational headwinds in Q1 is due to a combination of external and internal factors:
Market disruption: We saw market disruption of pricing both in NLD and ILD business in select customers which impacted our EBITDA. We have been quick to respond by taking an approach of making focused investments on our priority customers. We are confident that at the end of this cycle, we will come out stronger with our customers and be able to get back to better profitability systematically over the course of this financial year.
Legacy systems and infrastructure modernization: From an internal perspective, we had some challenges in scaling our legacy infrastructure as our volumes have scaled substantially over the years. We have used this opportunity to completely modernize our legacy systems and infrastructure to the highest standards. We had an impact in Q1 on EBITDA, but we do not see this impact going forward.
Forex impact: The sharp depreciation of the Euro against the USD had an impact on EBITDA.
More details here
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