Datamatics Global Services Limited · NSE:DATAMATICS
Datamatics Global Services — Q3 FY19 Earnings Presentation
36 slides from Datamatics Global Services's earnings presentation, Feb 1, 2019
Slide 1: Cover letter to stock exchanges on investor presentation
Datamatics Global Services Limited Regd. Office: Knowledge Centre, Plot No. 58, Street No.17, MIDC, Andheri (East), Mumbai -400 093. INDIA Tel. : +91 (22) 6102 0000/1/2 Fax : +91 (22) 2834 3669 DATAMATICS® CIN : L72200MH1987PLC045205 w*w.datamatics.com Data to Intelligence February 01, 2019 To, Corp
Slide 2: Q3 & 9M FY19 Results Update
DATAMATICS GLOBAL SERVICES LIMITED Q3 & 9M FY19 Results Update JANUARY 2019
Slide 3: Summary of discussion
▪ COMPANY OVERVIEW ▪ QUARTERLY UPDATE ▪ DATAMATICS – LUMINA PROPOSED DEMERGER DISCUSSION SUMMARY ▪ FINANCIAL OVERVIEW & SHAREHOLDING PATTERN ▪ AWARDS & CERTIFICATIONS
Slide 4: Company Overview
DATAMATICS* Data to Intelligence COMPANY OVERVIEW
Slide 5: Brief Profile
COMPANY OVERVIEW BRIEF PROFILE We build intelligent solutions for data-driven businesses to enhance their productivity and customer experience Employees Offices in Customers Worldwide 500+ 10,000+ 6 Countries Global Delivery Centers in 9M FY19 Revenue 9M FY19 EBITDA 4 Regions ₹ 8,266 Mn ₹ 947 Mn (+2
Slide 6: Our Portfolio
COMPANY OVERVIEW OUR PORTFOLIO Business Process Management IT Services • Finance & Accounting • Publishing • Cloud Services • Web Design & Development • Banking Process Management • Retail / e-Commerce • Robotic Test Automation • Application Management • Insurance Process Management • Enterprise Con
Slide 7: Key Milestones
COMPANY OVERVIEW KEY MILESTONES ▪ Acquired Saztec (USA,2003) ▪ Opened new delivery centre in USA ▪ Acquired Corpay for Accounts ▪ Acquired TechJini, boutique mobile & Payable solutions (USA, 2003) ▪ Datamatics incorporated (1975) web technology provider (India, 2017) ▪ BUPA on boarded as customer (2
Slide 8: Key Focus Areas
COMPANY OVERVIEW KEY FOCUS AREAS SHORT TERM MEDIUM TERM AFC opportunity – Strategic Account Penetration & Invest in Automation to Focus on Indian Metro Focus on larger deals improve productivity Acquisitions Rail Projects Focus on Products – Artificial Establish Partners & Digital Robotics & Advance
Slide 9: Robotic Process Automation – TruBot
COMPANY OVERVIEW ROBOTIC PROCESS AUTOMATION – TRUBOT 2,600+ An active customer active TruBots base of 96 globally Over 23 million documents 70% clients with over processed $5 billion revenue through OCR Catering to customers across Banking, Healthcare, Insurance, Manufacturing and Logistics 8
Slide 10: TruBot Recognised in Gartner, IDC and Everest Reports
COMPANY OVERVIEW TRUBOT RECOGNISED IN GARTNER, IDC AND EVEREST REPORTS As per Grand View Research Report (Oct 2018), RPA Market will be worth USD 3.11 Bn by 2025 “Our extensive research on various RPA vendors, done as part of ‘The Future of Work and Robotic Process Automation Vendor Assessment 2018
Slide 11: Experienced Management Team
COMPANY OVERVIEW EXPERIENCED MANAGEMENT TEAM DR. LALIT KANODIA RAHUL KANODIA SANDEEP MANTRI BRAJESH UGRA NAVIN GUPTA Chairman Vice-Chairman VP & Chief Financial President – Global Head - EVP & Global Head & CEO Officer - Sales BPO Services SANJEEV SUBHEDAR SACHIN RANE SANJEET BANERJI SHASHI BHARGAVA
Slide 12: Quarterly Update
DATAMATICS’ Data to Intelligence QUARTERLY UPDATE
Slide 13: Q3 & 9M FY19 – Key Highlights
QUARTERLY UPDATE Q3 & 9M FY19 – KEY HIGHLIGHTS Description (In Rs. Mn.) Q3 FY 18-19 Q3 FY 17-18 Growth % 9M FY 18-19 9M FY 17-18 Growth % SUMMARY Revenue 2,859 2,348 21.8% 8,266 6,755 22.4% FINANCIALS EBITDA 317 208 52.5% 947 590 60.6% PBT 193 249 -22.7% 792 705 12.0% PAT 128 185 -30.8% 580 563 3.0%
Slide 14: Q3 FY19 – Key Highlights
QUARTERLY UPDATE Q3 FY19 – KEY HIGHLIGHTS BUSINESS ▪ 6 new customers added in Q3 FY19. ▪ Focus on growing the partnership and re-seller program; signed 15 partners (22 in 9M FY19) for TruBot UPDATES and TruBI products, taking the total partner strength to 30. ▪ Launched the new version of RPA produc
Slide 15: Q3 FY19 – Key Result Highlights
QUARTERLY UPDATE Q3 FY19 – KEY RESULT HIGHLIGHTS In Rs Mn REVENUES EBITDA & EBITDA Margin % 2,859 11.1% 8.8% 2,348 317 22% 208 53% Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 PBT & PBT Margin % PAT & PAT Margin % # 10.6% 6.7% 7.9% 4.5% 249 193 185 23% 31% 128 Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 14 # PAT Before Mino
Slide 16: 9M FY19 – Key Result Highlights
QUARTERLY UPDATE 9M FY19 – KEY RESULT HIGHLIGHTS In Rs Mn REVENUES EBITDA & EBITDA Margin % 11.5% 8,266 8.7% 6,755 947 589 22% 61% 9M FY18 9M FY19 9M FY18 9M FY19 PBT & PBT Margin % PAT & PAT Margin % # 10.4% 9.6% 8.3% 7.0% 792 580 705 563 12% 3% 9M FY18 9M FY19 9M FY18 9M FY19 15 # PAT Before Minor
Slide 17: Q3 & 9M FY19 – Revenue Analysis
QUARTERLY UPDATE Q3 & 9M FY19 – REVENUE ANALYSIS IT SEGMENT In Rs Mn IT REVENUES – Q3 FY19 IT REVENUES – 9M FY19 4,703 1,619 1,315 3,622 23% 30% Q3 FY18 Q3 FY19 9M FY18 9M FY19 BPM SEGMENT BPM REVENUES – Q3 FY19 BPM REVENUES – 9M FY19 3,563 1,240 3,133 1,034 20% 14% Q3 FY18 Q3 FY19 9M FY18 9M FY19 1
Slide 18: 9M FY19 – Region-wise Revenues
QUARTERLY UPDATE 9M FY19 – REVENUE ANALYSIS REGION-WISE REVENUES 9M FY18 9M FY19 4% 5% 17% 15% 16% 19% 61% 63% USA Europe India & ME RoW USA Europe India & ME RoW 17
Slide 19: 9M FY19 – Industry-wise Revenues
QUARTERLY UPDATE 9M FY19 – REVENUE ANALYSIS INDUSTRY-WISE REVENUES 9M FY18 9M FY19 33% 24% 34% 25% 27% 27% 5% 4% 10% 11% BFSI Publishing Manufacturing BFSI Publishing Manufacturing Hospitality Others Hospitality Others 18
Slide 20: Client Concentration Maintained at Comfortable Level
QUARTERLY UPDATE 9M FY19 – REVENUE ANALYSIS CLIENT CONCENTRATION MAINTAINED AT A COMFORTABLE LEVEL 9M FY18 9M FY19 50% 49% 35% 36% 23% 24% Top 5 Top 10 Top 20 Top 5 Top 10 Top 20 19
Slide 21: Q3 & 9M FY19 – Consolidated Profit and Loss
QUARTERLY UPDATE Q3 & 9M FY19 – CONSOLIDATED PROFIT AND LOSS Particulars (Rs in Mn) Q3 FY19 Q3 FY18 YoY % Q2 FY19 QoQ % 9M FY19 9M FY18 YoY% Revenue from Operations 2,859.3 2,348.4 21.8% 2,799.0 2.2% 8,266.3 6,755.0 22.4% Purchase of Products and Licences 18.9 23.7 -20.1% 40.3 -53.1% 76.1 62.9 21.0%
Slide 22: Datamatics – Lumina Proposed Demerger
DATAMATICS – LUMINA PROPOSED DEMERGER
Slide 23: Demerger Specifics
PROPOSED DEMERGER DEMERGER SPECIFICS Step 1: Lumina Datamatics will be Currently owns 98.04% merged with Datamatics Global Services Limited Step 2: Vertically Split as per businesses LDR E-RETAIL LIMITED DATAMATICS GLOBAL SERVICES LIMITED To be renamed as Lumina Datamatics Limited (ex-Publishing & R
Slide 24: Demerger Rationale
PROPOSED DEMERGER DEMERGER RATIONALE ADVANTAGE MANAGEMENT ADVANTAGE SHAREHOLDERS Diversified Offerings Value Unlocking The businesses of the two companies, serve Unlock the value for the shareholders of the Transferee completely different market segments and have Company / Demerged Company by listin
Slide 25: Demerger Indicative Timeline
PROPOSED DEMERGER DEMERGER INDICATIVE TIMELINE Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Board Approves Scheme Filling Scheme to Exchanges & Regulators Receipt of Exchanges Approval Filling with NCLT Shareholder / Creditor Meeting NCLT Approval Processes NCLT Appro
Slide 26: Demerger Impact on Financials
PROPOSED DEMERGER DEMERGER IMPACT ON FINANCIALS 9M FY19 In Rs Mn Revenues ** EBITDA & EBITDA Margin % ^ PAT & PAT Margin % # 8,266 11.5% 11.5% 11.2% 7.0% 7.0% 6.9% 6,279 947 725 580 442 1,987 222 138 DGSL DGSL Ex- LUMINA DGSL DGSL Ex- LUMINA DGSL DGSL Ex- LUMINA LUMINA LUMINA LUMINA ** Operating Rev
Slide 27: Demerger Impact – Segment-wise Revenues
PROPOSED DEMERGER DEMERGER IMPACT ON FINANCIALS SEGMENT-WISE REVENUES (IT vs. BPM) – 9M FY19 DGSL Ex-LUMINA 25% 43% 57% 75% 100% IT BPM IT BPM BPM 26
Slide 28: Demerger Impact – Region-wise Revenues
PROPOSED DEMERGER DEMERGER IMPACT ON FINANCIALS REGION-WISE REVENUES – 9M FY19 DGSL Ex-LUMINA 5% 6% 5% 4% 15% 20% 19% 61% 51% 91% 23% USA Europe India & ME RoW USA Europe India & ME RoW USA Europe RoW 500+ Global Customers 400+ Global Customers 90+ Global Customers 27
Slide 29: Financial Overview & Shareholding Pattern
FINANCIAL OVERVIEW SHAREHOLDING PATTERN
Slide 30: Steady Growth Over Last Years
FINANCIAL OVERVIEW STEADY GROWTH OVER LAST 5 YEARS In Rs Mn Revenues ** EBITDA & EBITDA Margin % ^ PAT & PAT Margin % # 9,103 8,524 10.3% 11.5% 7.5% 7.9% 8,280 8,162 8,266 9.0% 9.7% 9.0% 7.0% 5.9% 5.5% 947 851 830 820 715 733 640 580 485 444 FY15 FY16 FY17 FY18 9M FY15 FY16 FY17 FY18 9M FY15 FY16 FY
Slide 31: Healthy Balance Sheet Position
FINANCIAL OVERVIEW HEALTHY BALANCE SHEET POSITION In Rs Mn Leverage Analysis Return Ratio Analysis 18.2% 17.0% 0.25 0.22 0.19 0.11 0.05 13.2% 12.5% 12.9% 12.3% 5,827 10.0% 10.1% 5,231 8.7% 9.4% 4,673 4,186 3,707 913 922 901 658 286 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Debt Equity + MI D
Slide 32: Shareholding Summary
SHAREHOLDING PATTERN SHAREHOLDING SUMMARY SHARE PRICE PERFORMANCE MARKET DATA AS ON 31st JANUARY 2019 Market Capitalization (Rs Cr) 591.0 170 Price (Rs) 101.0 140 No. of Shares Outstanding (Cr) 5.9 110 Face Value (Rs) 5.0 80 52 Week Low-High (Rs) 99.1 / 146.0 Feb-18 May-18 Aug-18 Nov-18 Feb-19 SHARE
Slide 33: Awards & Certifications
DATAMATICS* Data to Intelligence AWARDS & CERTIFICATIONS
Slide 34: Certifications
AWARDS & CERTIFICATIONS CERTIFICATIONS SSAE 16 SOC 1 & SOC A1 Rating Re-Certified Certified Certified II with HiTRUST (S&P) SEI CMMI Level 4, ISO 27001-2013 ISO 9001-2008 Financial Stability V 1.3 HIPAA Compilant 33
Slide 35: Recent Awards & Recognitions
AWARDS & CERTIFICATIONS RECENT AWARDS & RECOGNITIONS CIO Choice 2019 – Best Cognitive Recognised for Technology Provider Robotic Process of the Year 2018 – Automation (RPA) Recognised for RPA CIO Choice 2018 – 7th Global Economic NASSCOM Analytics Artificial Intelligence, Summit 2018 – Challenge 201
Slide 36: 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 historical in nature. These forward looking statements, which may include statements relating to future results of
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