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Vivek Arora, Global Line of Business Leader; Pranay Arora, Global Practice LeaderHarnessing Digital Engineering and AI
Nagarro’s expertise in digital engineering and artificial intelligence addresses the complex challenges of modern urbanization. Its solutions span prop tech, construction tech, safety and security, occupant experience, sustainability, and utility services. Central to its approach is the RISE framework—Resilience, Intelligence, Sustainability, and Experience—which drives the digitization and transformation of buildings into smart, cognitive spaces. This framework supports the development of bespoke applications and key performance indicators (KPIs), empowering clients to navigate industry complexities and unlock new possibilities for innovation and growth.
Experience in creating Smart Building solutions
Adeptness in promptly addressing issues is one of its stand-out features. Nagarro understands the challenges faced by clients due to the heterogeneous nature of the real estate ecosystem, which complicates the management and integration of various systems and applications within buildings. Nagarro has experience working across the entire real estate lifecycle from building design, development, operations, maintenance and tenancy. It has developed custom solutions for clients across the four guiding principles of the RISE approach.
“By leveraging our proprietary RISE approach and cutting-edge technologies, we enable buildings to anticipate and respond to evolving threats, optimize energy usage and provide a seamless, human-centric experience,” says Pranay Arora, global practice leader for smart buildings and proptech.
Empowering Smart Building Integration
The biggest challenge with buildings today is the heterogeneous nature of available systems. The Smart Building OS (SBOS) accelerator by Nagarro is a platform designed to streamline the integration and management of diverse systems, acting as a central nervous system.
Nagarro’s smart buildings portfolio showcases numerous practical applications and experience across the entire real estate value chain. Some instances include:
1 - An IoT and AI-powered facility knowledge management system significantly improved operational efficiency and reduced downtime.
2 - Another notable project involved a supply chain traceability solution for a global retail leader, ensuring transparency and adherence to sustainability standards.
3 - A salesforce-based solution for a leading construction data organization to help faster quote generation and close more deals.
4 - A multi-tenant platform for energy usage analytics, billing management, insights and intelligence for tracking and achieving sustainability goals.
5 - A computer-aided facility management solution revitalized outdated modules, enhancing overall performance.
“Nagarro’s Smart Building practice offers technology solutions and technology consulting services across both IT and OT,” says Vivek Arora, global line of business leader for smart buildings and proptech.
Commitment to Core Values
Nagarro’s corporate ethos is encapsulated by its CARING philosophy—Customer Centricity, Agility, Responsibility, Intelligence, Non-Hierarchical and Global. These core values define its guiding principles and drive the company to deliver unmatched solutions. Nagarro’s adeptness in promptly addressing client issues stands out, particularly in managing and integrating diverse systems within buildings through its accelerator platform, which aggregates data from various sources to provide a unified interface for stakeholders.
Strategic Digital Transformation
Through its proprietary Thinking Breakthroughs framework, Nagarro collaborates with clients in detailed workshops to develop innovative use cases and solutions, promising increased ROI and business impact. This process culminates in a strategic roadmap to success, reflecting Nagarro’s leadership in digital product engineering.
Conclusion
Nagarro’s leadership in digital product engineering is powered by a culture of excellence and rigorous governance, enabling the company to deliver superior quality across all aspects of smart building solutions.
Nagarro is shaping the future of cities by intertwining technological expertise, industry insight and a genuine commitment to care. The sheer dedication to client satisfaction is reflected in the company’s sincere efforts toward their success, positioning it as a leading force in the evolution of smart buildings.
Company
Nagarro
Management
Vivek Arora, Global Line of Business Leader; Pranay Arora, Global Practice Leader
Description
Nagarro is a leading global technology consultancy company that embodies the convergence of advanced technology and innovative solutions to transform urban living spaces into intelligent, sustainable and resilient environments. At the heart of Nagarro's solutions is RISE–Resilience, Intelligence, Sustainability and Experience–which drives its approach to digitizing and transforming buildings into smart, cognitive spaces.
In Q2 2024, revenue grew to €244.1 million, up 7.6% YoY from €226.8 million in Q2 2023. Constant currency YoY revenue growth for Q2 2024 was also 7.6%. Organic YoY revenue growth for the quarter was 3.6% in constant currency, which translated to 4.0% organic YoY revenue growth in Euro terms. Nagarro has revised the definition of cost of revenues from Q1 2024 onwards to align it better with that of other IT services companies. Gross profit in Q2 2024 was €73.3 million as per the current method and €62.4 million as per the previous method, as compared to €57.5 million in Q2 2023 as per the previous method. Gross margin in Q2 2024 was 25.6% compared to 25.3% in Q2 2023, both as per the previous method. Gross margin was 30.0% in Q2 2024 as per the current method. Adjusted EBITDA grew to €35.5 million (14.5% of revenue) in Q2 2024 from €28.9 million (12.8% of revenue) in Q2 2023.
EBITDA grew to €32.8 million in Q2 2024 from €27.3 million in Q2 2023. The main EBITDA adjustments in Q2 2024 were on account of the expense on earnouts of €1.3 million and retention bonus of €0.7 million from past acquisitions, and the expense on employee stock options and the Employee Share Purchase Program of €0.7 million. EBIT grew to €23.1 million in Q2 2024 from €19.5 million in Q2 2023. Net profit grew to €12.0 million in Q2 2024 against €11.5 million in Q2 2023.
The company added a net of 33 professionals in Q2 2024.
H1 results
Nagarro released its half-yearly financial report. Revenue grew to €482.4 million in H1 2024, up 5.7% YoY from €456.4 million in H1 2023. Constant currency revenue growth for H1 2024 was 6.3%. Organic YoY revenue growth for H1 2024 was 1.7% in constant currency, which translated to 1.3% organic YoY revenue growth in Euro terms. Gross profit in H1 2024 was €146.9 million as per the current method and €126.3 million as per the previous method, as compared to €118.9 million in H1 2023 as per the previous method. Gross margin in H1 2024 was 26.2% as per the previous method compared to 26.1% in H1 2023 as per the previous method. Gross margin was 30.5% in H1 2024 as per the current method. Adjusted EBITDA grew to €74.7 million (15.5% of revenue) in H1 2024 from €60.3 million (13.2% of revenue) in H1 2023. EBITDA grew to €68.8 million in H1 2024 from €58.1 million in H1 2023. EBIT grew to €49.7 million in H1 2024 from €42.6 million in H1 2023. Net profit grew to €28.6 million in H1 2024 against €26.6 million in H1 2023.
The cash balance increased by €11.3 million from December 31, 2023, to €121.4 million on June 30, 2024.
Operating cash inflow in H1 2024 rose to €27.6 million from €15.4 million in H1 2023. Days of sales outstanding, calculated based on the quarterly revenue and including both contract assets and trade receivables, increased from 84 days on December 31, 2023, to 87 days on June 30, 2024.
The Net Promoter Score from the customer satisfaction survey conducted in Q1 2024 was 66, and in Q2 2024, 62, resulting in a score of 64 for H1 2024. The company reduced the net of 112 professionals in H1 2024 to 18,301.
Kanchan Ray, CTO of Nagarro, said, "Nagarro's resilient H1 2024 performance highlights the strength of our strategic vision. We must also applaud our hardworking teams, whose efforts continue to create value for our clients around the globe."
Nagarro SE will hold its analyst and investors meeting as a video call to discuss the half-yearly report 2024 on August 14, 2024, at 01:00 pm CEST (04:00 am PT / 06:00 am CT / 07:00 am ET / 12:00 pm BST / 03:00 pm GST / 04:30 pm IST / 07:00 pm SGT / 08:00 pm JST).
Nagarro SE will hold its retail investors call to discuss the half-yearly report 2024 on August 14, 2024, at 02:30 pm CEST (05:30 am PT / 07:30 am CT / 08:30 am ET / 01:30 pm BST / 04:30 pm GST / 06:00 pm IST / 08:30 pm SGT / 09:30 pm JST).