Datamatics Global Services Limited · NSE:DATAMATICS
Datamatics Global Services — Q4 FY2021 Earnings Presentation
31 slides from Datamatics Global Services's earnings presentation, May 26, 2021
Slide 1: Investor Presentation
Investor Presentation 26th May 2021 Datamatics Global Services Limited BSE: 532528 | NSE: DATAMATICS | ISIN: INE365B01017 | CIN: L72200MH1987PLC045205 © Copyright 2019 Datamatics Global Services Limited and its subsidiaries (hereinafter jointly referred as Datamatics). All rights reserved.
Slide 2: Agenda
Agenda Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Recognition Financial 03. Overview © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 2
Slide 3: Agenda
Agenda Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Recognition Financial 03. Overview © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 3
Slide 4: Executive Summary
Executive Summary Nature of Business FY21 Highlights Global Technology, BPM and Digital Revenue ₹ 11,490.5 Mn; down 4.5% YoY Solutions company that builds Business Process IT Services & Engineering due to non-inclusion of Cignex revenue Management Cloud Services intelligent solutions for data-dr
Slide 5: Key Milestones
Key Milestones 2016 Opened new delivery centre in USA Acquired TechJini, boutique mobile & 2017 2003 Acquired Saztec USA web technology provider India Acquired RJGlobus Solutions, voice & Acquired Corpay for Accounts 2018 2003 text based customer service provider Payable solutions USA 1975 Datamatic
Slide 6: Line of Business
Line of Business Business Process Artificial Information Management 49% Intelligence 51% Technology (IT) (BPM) (AI) Smart Systems Smart Processes Products Products © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 6
Slide 7: IT Solutions
IT Solutions Offerings Metrics Application Management Services Digital Solutions Products Robotic Process Automation (RPA) 51% Enterprise Mobility Revenue Contribution Cloud Solutions Automated Fare Collection (AFC) Opportunity 6.9% EBITDA Margin Worldwide IT spending is forecasted to
Slide 8: Business Process Management (BPM)
Business Process Management (BPM) Offerings Metrics Financial Transaction Processing Products Content Management & Publishing Customer Management 49% Revenue Contribution Opportunity 18.1% EBITDA Margin The global BPM market is expected to total US$ 254 billion in 2021, a growth of 4.5% from
Slide 9: Robotics Process Automation (RPA)
Robotics Process Automation (RPA) Offerings Client Metrics Provides RPA implementation, licensing, and support services for a range of repetitive and rule- based processes without any manual intervention 4000+ Active TruBots TruBot, a vertical-agnostic product is an off-the-shelf software bot th
Slide 10: Agenda
Agenda Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Recognition Financial 03. Overview © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 10
Slide 11: Strategy & Outlook for the Future
Strategy & Outlook for the Future Strengthen US footprint Account Penetration & Focus on larger deals Strengthen Partners & Reseller Channel Invest in Automation to improve productivity Digital Solutions - Focus on Products – Robotics, Intelligent Document Processing AFC opportunity – Focus on India
Slide 12: Investment Rationale: Business
Investment Rationale: Business Delivers comprehensive suite of innovative services and solutions to customers including Fortune 500 companies for managing their end-to-end Application Life Cycle and Business Critical Processes Strong brand reputation in the market and a stable foothold in the IT & I
Slide 13: Agenda
Agenda Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Recognition Financial 03. Overview © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 13
Slide 14: Q4FY21 – Key Financial Highlights
Q4FY21 – Key Financial Highlights Revenue at ₹ 2,832.9 million; down 6.5% QoQ and down 8.7% YoY. The revenue reduction during the quarter is because of non-inclusion of Cignex revenue due to its divestment Revenue growth without Cignex, 8.1% QoQ and 8.5% YoY EBITDA at ₹ 418.5 million; up 7.6%
Slide 15: FY21 – Key Financial Highlights
FY21 – Key Financial Highlights Revenue at ₹ 11,490.1 million; down 4.5% YoY because of non-inclusion of Cignex revenue in Q4FY21 and impact of pandemic in the initial quarters. Revenue without Cignex in FY21 was ₹ 10,223 million as compared to ₹ 10,076 million in FY20, an increase of 1.5% EBITD
Slide 16: Q4 & FY21 – Consolidated Profit and Loss
Q4 & FY21 – Consolidated Profit and Loss Particulars (₹ in Mn) Q4 FY21 Q4 FY20 YoY % Q3 FY21 QoQ % FY21 FY20 YoY % Revenue from Operations 2,832.9 3,103.8 (8.7%) 3,030.6 (6.5%) 11,490.5 12,033.2 (4.5%) Purchase of Products and Licenses 11.3 78.5 9.7 105.1 169.8 Employee Benefits Expenses 1,788.8 2,0
Slide 17: FY21 – Consolidated Balance Sheet
FY21 – Consolidated Balance Sheet Particulars (Rs in Mn) FY21 FY20 Particulars (Rs in Mn) FY21 FY20 Equity & Liabilities Assets Non-Current Assets Shareholder’s Funds Fixed Assets 1,155.0 1,180.1 Share Capital 294.8 294.8 Capital work in Progress - 7.3 Other Equity 6,864.6 6,648.3 Goodwill 724.5 1,9
Slide 18: Agenda
Agenda Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Recognition Financial 03. Overview © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 18
Slide 19: Q4 FY21 – Business Updates
Q4 FY21 – Business Updates Datamatics successfully concluded divestment of its subsidiary Cignex Datamatics added 4 new customers in Q4 Datamatics successfully concluded its virtual Intelligent Automation Summit which was attended by over 1700 senior professionals from different industries acr
Slide 20: Q4 FY21 – Key Result Highlights
Q4 FY21 – Key Result Highlights Operating Revenues EBITDA & EBITDA Margin % 14.8% 12.8% (In ₹ Mn) (In ₹ Mn) 3,103.8 3,030.6 9.1% 2,832.9 6.5% 7.6% 418.5 QoQ QoQ 389.0 282.1 8.7% 48.3% Q4 FY20 Q3 FY21 Q4 FY21 YoY Q4 FY20 Q3 FY21 Q4 FY21 YoY Adjusted PBT & PBT Margin* % PAT before NCI & PAT before NCI
Slide 21: FY21 – Key Result Highlights
FY21 – Key Result Highlights Operating Revenues EBITDA & EBITDA Margin % 12.4% 10.3% (In ₹ Mn) (In ₹ Mn) 12,033.2 11,490.5 1,422.4 1,235.7 4.5% 15.1% YoY YoY FY20 FY21 FY20 FY21 Adjusted PBT & PBT Margin* % PAT before NCI & PAT before NCI Margin % 9.6% (In ₹ Mn) (In ₹ Mn) 8.6% 7.4% 6.4% 1,036.6 1,10
Slide 22: Q4 FY21 – Revenue Segment Analysis
Q4 FY21 – Revenue Segment Analysis IT Services Revenues – Q4 FY21 BPM Revenues – Q4 FY21 1,781.3 1,645.9 1,581.8 25.0% 13.6% (In ₹ Mn) (In ₹ Mn) 1,448.7 QoQ 1,322.5 QoQ 1,187.0 33.4% 24.5% YoY YoY Q4 FY20 Q3 FY21 Q4 FY21 Q4 FY20 Q3 FY21 Q4 FY21 Note - The revenue reduction in IT Services during the
Slide 23: FY21 – Revenue Segment Analysis
FY21 – Revenue Segment Analysis IT Services Revenues – FY21 BPM Revenues – FY21 7,071 5,873 5,617 4,962 (In ₹ Mn) (In ₹ Mn) 16.9% 13.2% YoY YoY FY20 FY21 FY20 FY21 Note: IT Services revenue without Cignex in FY20 was ₹ 5,105 million and ₹ 4,620 million in FY21. © Copyright 2020 Datamatics Global Ser
Slide 24: Healthy Balance Sheet Position
Healthy Balance Sheet Position Leverage Analysis Return Ratio Analysis 15.8% 0.11 0.14 0.05 13.5% 0.00 12.9% 13.4% 11.4% 11.5% 11.2% 7,079 7,152 10.1% 6,793 (In ₹ Mn) 5,827 965 658 359 0 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Debt Equity D/E ROCE% ROE% © Copyright 2020 Datamatics Global Services Li
Slide 25: Cash Flow
Cash Flow Operating Cash Flow Days Sales Outstanding (DSO) 71.6% 67.1% 66.9% 67.6% 1,018 82 83 79 896 835 (In ₹ Mn) 65 Number of days 550 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 OCF OCF/EBITDA % © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 25
Slide 26: Q4 FY21 – Revenue Segment Analysis
Q4 FY21 – Revenue Segment Analysis Revenue by Industry Revenue by Geography 6% 5% 6% 3% 4% 5% 21% 20% 25% 20% 21% 6% 6% 23% 5% 5% 5% 6% 15% 11% 10% 19% 26% 26% 18% 15% 19% 56% 59% 56% 28% 28% 23% Q4 FY20 Q3 FY21 Q4 FY21 Q4 FY20 Q3 FY21 Q4 FY21 Others Retail / E-Retail US UK India Europe ROW Manufact
Slide 27: FY21 – Client Concentration
FY21 – Client Concentration Client concentration maintained at a comfortable level 49% 46% 36% 33% 24% 25% FY20 FY21 FY20 FY21 FY20 FY21 Top 5 Top 10 Top 20 © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 27
Slide 28: Agenda
Agenda Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Recognition Financial 03. Overview © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 28
Slide 29: Key Analyst Coverage
Key Analyst Coverage Datamatics recognized as a Major Datamatics recognized in the Datamatics recognized as a Major Contender and Star Performer in Datamatics TruBot recognized as a Gartner Market Guide for Finance Player in the IDC MarketScape. the Intelligent Document Strong Performer in Forrester
Slide 30: Recognition: Awards
Recognition: Awards Datamatics named as ‘Leader’ Datamatics recognized at UN TruBot won Gold Stevie Award TruCap+ won People’s Choice in the IAOP 2021 Global Global Compact Network India 2020 for ‘Sales & Customer Stevie Award 2020 for Outsourcing 100 List of the Innovative Practices Award Service’
Slide 31: For further queries
For further queries DISCLAIMER: This presentation and the following discussion may contain “forward looking statements” by Datamatics Global Services (“DGS” or the Company) that are not Mr. Sandeep Mantri historical in nature. These forward looking statements, which may include Chief Financial Offic
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