#Germany #Munich #Financial Growth #Digital Engineering #Nagarro

Nagarro's Strong Performance in FY 2024

Nagarro, the renowned global leader in digital engineering, recently released its preliminary financial results for the fiscal year ending December 31, 2024. The company achieved remarkable revenue growth, reaching €972 million, a 6.6% increase compared to €912.1 million in the previous year. This steady advancement reflects a robust performance despite the challenging economic landscape.

Key Financial Highlights

During the reporting period, Nagarro's gross profit also saw a significant elevation, standing at €295.8 million with a gross margin of 30.4%. When evaluated by the previous method of accounting, the gross profit was recorded at €253.9 million, up from €235.7 million in 2023. The adjusted EBITDA climbed to €146.5 million, with an impressive margin increase to 15.1%, up from 13.8% in the previous year. These metrics signal Nagarro's capability to enhance profitability while managing costs effectively.

Strategic Adjustments

It's noteworthy that Nagarro revised its definition of costs associated with revenues starting in Q1 2024 to align more accurately with standard practices observed in other IT services firms. This strategic move not only reflects Nagarro's commitment to transparency but also showcases its intent to continuously refine its operational methodologies.

Cash Management and Borrowing Trends

The company reported a healthy cash balance of €192.6 million at the end of 2024, a considerable rise from €110.1 million at the end of 2023. On the asset liability side, Nagarro's loans and borrowings translated to €329.6 million, in contrast to €274.7 million the previous year. This gradual increase in borrowing suggests an aggressive approach towards leveraging for further growth while maintaining adequate liquidity.

Workforce Expansion

As of December 31, 2024, Nagarro employed 17,695 professionals, reflecting its global outreach and operational capabilities across various regions. The company's strategic hiring policies indicate a focus on attracting dynamic talent to bolster creative solutions for clients.

Executive Insights

Vikram Sehgal, the COO and co-founder of Nagarro, expressed satisfaction with the company's achievements, despite external economic pressures. He stated, “We are pleased to have delivered a robust 2024, despite the macro headwinds. We have also had a sound start into 2025.” This optimistic outlook is complemented by a commitment to implementing strategies that ensure profitable growth in the coming years.

Looking Ahead

On May 15, 2025, Nagarro intends to publish its audited annual report for 2024 along with the quarterly unaudited statement for Q1 2025, further solidifying its accountability to stakeholders.

Nagarro's continued focus on innovation and customer-centric solutions positions it well for sustained success in an increasingly competitive digital landscape. By embracing the challenges of the current economic climate, Nagarro demonstrates its resilience and adaptability, reinforcing its status as a leader in the digital engineering sector.

For more details about Nagarro's latest reports and strategic initiatives, visit www.nagarro.com.