ISDN Holdings Limited reported QQ1 2025 results with solid top-line growth but limited bottom-line expansion. Revenue rose to SGD 106.45 million, up 21.95% year over year (YoY) and 7.59% quarter over quarter (QoQ) to start the year, driven by higher activity in motion control and automation-related solutions. Gross profit reached SGD 24.45 million, yielding a gross margin of approximately 23.0%. EBITDA stood at SGD 9.60 million and operating income at SGD 7.18 million, delivering an EBITDA margin of about 9.0% and an operating margin of 6.74%. However, net income was SGD 0.643 million, translating to a net margin around 0.60%, with YoY and QoQ declines of roughly 66% and 73%, respectively, due to higher operating expenses and non-operating costs. The quarterly results imply an improving topline but compressed profitability, underscored by relatively modest cash generation and a moderate balance sheet by capital-light industrial services standards.
Liquidity remains adequate but not expansive: current ratio 1.78, quick ratio 1.27, and cash ratio 0.43. The company carries low leverage (debt ratio 0.19; debt-to-equity 0.39) with an interest coverage of ~5.9x, suggesting moderate balance-sheet resilience. Cash flow per share (CFPS) from operating activities is SGD 0.0080 and free cash flow per share (FCFPS) SGD 0.0041, indicating limited per-share cash generation despite top-line momentum.
Management commentary for QQ1 2025 was not included in the provided transcript, limiting the depth of qualitative context. Nonetheless, the results point to a growth-oriented trajectory in the Industrials/engineering space, with potential upside from improved cost discipline, project mix optimization, and continued exposure to automation, data connectivity, and renewable-energy-related solutions.