ISDN Holdings delivered a resilient QQ3 2024 performance with revenue of SGD 98.935 million, marking a 14.6% year-over-year rise and a 13.4% quarter-over-quarter uptick. Gross profit reached SGD 25.512 million, yielding a gross margin of 25.8%, while EBITDA stood at SGD 9.07 million and operating income at SGD 6.8625 million, translating to an EBITDA margin of ~9.17% and an operating margin of ~6.94%. Net income was SGD 2.3705 million, or 2.40% net margin, with basic EPS at SGD 0.0053. The quarter benefited from a favorable mix and scale, though tax rate remained around 26.8%.
Net cash flow from operations was SGD 1.4175 million, with capital expenditures of SGD 1.497 million and a negative free cash flow of SGD 0.0795 million, reflecting ongoing reinvestment in working capital and growth-capital initiatives. The balance sheet shows a solid asset base (Total assets SGD 415.9 million) and a prudent leverage profile (Total debt SGD 77.9 million; Net debt SGD 21.4 million; Debt-to-equity circa 0.38). Although there is no formal QQ3 guidance in the provided data, ISDN’s diversified exposure to motion control, industrial software, and energy transition opportunities supports a constructive longer-term outlook. The stock trades with a price-to-book around 0.66 and a price-to-earnings around 14.4, suggesting limited downside risk versus book value if the growth trajectory holds.
Overall, ISDN is showing early signs of operating leverage and cash-flow durability, but investors should monitor working capital dynamics, capex intensity, and the pace of revenue growth in key end-markets as inflationary and supply-chain headwinds persist in the industrials sector.