Datamatics Global Services Limited · NSE:DATAMATICS
Datamatics Global Services — Q4 FY2019 Earnings Presentation
31 slides from Datamatics Global Services's earnings presentation, May 10, 2019
Slide 1: Investor Presentation
Investor Presentation 10th May 2019 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. Certifications Financial 03. Overview © Copyright 2019 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. Certifications Financial 03. Overview © Copyright 2019 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 3
Slide 4: Executive Summary
Executive Summary Nature of Business FY19 Financials ▪ Global IT and BPM company that ▪ Operating Revenue ₹ 11,335 Mn builds intelligent solutions for data- Business Process IT Services & Engineering Management Cloud Services ₋ Up 24.5% in rupee terms and driven businesses to enhance their 17.9% in
Slide 5: Key Milestones
Key Milestones 2003 Acquired Saztec USA 2016 Opened new delivery centre in USA Acquired Corpay for Accounts 2003 Payable solutions USA Acquired TechJini, boutique mobile & 1975 Datamatics incorporated 2017 2003 BUPA on boarded as customer web technology provider India India’s 1st offshore developmen
Slide 6: Line of Business
Line of Business Business Process Artificial Information Management 43% Intelligence 57% Technology (IT) (BPM) (AI) Smart Systems Smart Processes Products Products © Copyright 2019 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 6
Slide 7: Business Process Management (BPM)
Business Process Management (BPM) Offerings Metrics ▪ Financial Transaction Processing Products ▪ Content Management & Publishing ▪ Customer Management 43% Revenue Contribution Opportunity 12.6% EBITDA Margin ▪ BPM market was at US$198 billion in 2018, growth of 4.5% on YoY basis mainly driven by hi
Slide 8: IT Solutions
IT Solutions Offerings Metrics ▪ Application Management Services ▪ Digital Solutions Products ✓ Robotic Process Automation (RPA) 57% ✓ Enterprise Mobility Revenue Contribution ✓ Cloud Solutions ▪ Automated Fare Collection (AFC) Opportunity 11.2% EBITDA Margin ▪ Global sourcing and IT spends grew at
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 2600+ Active TruBots ▪ TruBot, a vertical-agnostic product is an off-the-shelf software bot th
Slide 10: Outlook
Outlook Revenue momentum to continue; targeting a growth of 12-14% on constant currency basis Addition of 50 new channel partners to kick start visibility to our TruBot product in the RPA space AFC to continue its momentum and the Company awaits some new contracts that are undergoing the bidding pro
Slide 11: Acquisitions
Acquisitions Acquisition Techjini Solutions Pvt. Ltd RJGlobus Solutions Inc. To enhance Datamatics’ BPO offerings & an Objective To strengthen Datamatics’ mobility offerings alternative low cost off shore center Acquisition Date July 2017 April 2018 Stake (%) 81.1% 75.0% Consideration Rs 446.0 mn Rs
Slide 12: Agenda
Agenda Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Certifications Financial 03. Overview © Copyright 2019 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 12
Slide 13: Strategy & Outlook for the Future
Strategy & Outlook for the Future Account Penetration & Focus on larger deals Establish Partners & Reseller Channel Invest in Automation to improve productivity Digital Solutions Focus on Products – Robotics & Advanced Analytics AFC opportunity – Focus on Indian Metro Rail Projects Strategic Acquisi
Slide 14: Investment Rationale
Investment Rationale 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 strong foothold in the IT & ITeS spectr
Slide 15: Agenda
Agenda Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Certifications Financial 03. Overview © Copyright 2019 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 15
Slide 16: Steady growth over last 5 years
Steady growth over last 5 years 12,000 1,600 Revenue By Region 11,335 In Rs. Mn FY19 1,400 10,000 9,103 5% 8,280 8,524 1,200 15% 8,162 8,000 1,000 18% 62% 6,000 800 600 4,000 400 FY18 2,000 200 5% 17% - - FY15 FY16 FY17 FY18 FY19 Revenue 8,280 8,162 8,524 9,103 11,335 16% 62% EBITDA^ 851 733 830 820
Slide 17: Healthy Balance Sheet Position
Healthy Balance Sheet Position Leverage Analysis Return Ratio Analysis 0.19 15.8% 0.10 0.11 0.05 13.4% 12.3% 12.9% 6,793 5,827 10.0% 10.4% 10.1% In ₹ Mn 5,231 8.7% 4,673 901 547 658 359 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 ROCE% ROE% Debt Equity D/E FY16 Equity and Debt Figures are as per I-GAAP
Slide 18: Q4 & FY19 – Key Highlights
Q4 & FY19 – Key Highlights Strong operating performance backed by robust revenue growth and margin expansion Q4 FY19 – YoY Analysis FY19 – YoY Analysis ▪ Revenue - Rs. 3,069 mn, up 30.7% ▪ Revenue - Rs. 11,335 mn, up 24.5%. ▪ Region Wise (Revenue contribution %) - USA ▪ Region Wise (Revenue contribu
Slide 19: Q4 & FY19 – Consolidated Profit and Loss
Q4 & FY19 – Consolidated Profit and Loss Particulars (Rs in Mn) Q4 FY19 Q4 FY18 YoY % Q3 FY19 QoQ % FY19 FY18 YoY% Revenue from Operations 3,068.6 2,347.7 30.7% 2,859.3 7.3% 11,334.9 9,102.7 24.5% Purchase of Products and Licences 35.4 33.2 6.5% 18.9 87.0% 111.5 96.1 16.0% Employee Benefits Expenses
Slide 20: FY19 – Consolidated Balance Sheet
FY19 – Consolidated Balance Sheet Particulars (Rs in Mn) FY19 FY18 Particulars (Rs in Mn) FY19 FY18 Equity & Liabilities Assets Non-Current Assets Shareholder’s Funds Fixed Assets 1,177.4 1,112.1 Share Capital 294.8 294.8 Capital work in Progress 9.8 49.9 Other Equity 6,104.8 5,169.1 Goodwill 2,124.
Slide 21: Agenda
Agenda Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Certifications Financial 03. Overview © Copyright 2019 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 21
Slide 22: Q4 & FY19 – Business Updates
Q4 & FY19 – Business Updates ▪ Added 10 new customers in Q4 FY19 and 58 in FY19 Business Development ▪ Datamatics continued its focus on developing partner & reseller program. Signed 23 new partners in Q4FY19, taking total partner strength to 54 across the globe. Strategic ▪ Datamatics is managing o
Slide 23: Q4 FY19 – Key Result Highlights
Q4 FY19 – Key Result Highlights Operating Revenues EBITDA & EBITDA Margin % 3,500 600 30% 3,068.6 2,859.3 EBITDA Margin (In ₹ Mn) (In ₹ Mn) 2,347.7 7% 316.6 391.6 24% QoQ QoQ 230.9 12.8% 11.1% 9.8% 31% 70% 0 YoY 0 0% YoY Q4 FY18 Q3 FY19 Q4 FY19 Q4FY18 Q3FY19 Q4FY19 PBT & PBT Margin % PAT & PAT Margi
Slide 24: FY19 – Key Result Highlights
FY19 – Key Result Highlights Revenues EBITDA & EBITDA Margin % 12,000 11,334.9 1,600 20.0% 1,338.5 EBITDA Margin (In ₹ Mn) 9,102.7 (In ₹ Mn) 820.3 25% 11.8% 63% YoY 9.0% YoY 0 0 0.0% FY18 FY19 FY18 FY19 PBT & PBT Margin % PAT & PAT Margin % # 1,400 20% 900 844.8 15% 1,147.5 715.0 PBT Margin PAT Marg
Slide 25: Q4 & FY19 – Revenue Segment Analysis
Q4 & FY19 – Revenue Segment Analysis IT Services Revenues – Q4 FY19 IT Services Revenues – FY19 2,000 1,794.6 7,000 6,497.7 1,619.4 (In ₹ Mn) (In ₹ Mn) 4,962.1 1,340.2 11% QoQ 31% YoY 34% 0 YoY 0 Q4 FY18 Q3 FY19 Q4 FY19 FY18 FY19 BPM Revenues – Q4 FY19 BPM Revenues – FY19 1,400 1,274.0 5,500 1,239.9
Slide 26: FY19 – Client Concentration
FY19 – Client Concentration Client concentration maintained at a comfortable level FY19 FY18 49% 48% 35% 35% 24% 23% Top 5 Top 10 Top 20 Top 5 Top 10 Top 20 © Copyright 2019 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 26
Slide 27: Agenda
Agenda Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Certifications Financial 03. Overview © Copyright 2019 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 27
Slide 28: Recent Awards
Recent Awards 2019 IBM Asia Pacific Featured In International Indian Merchant Chamber (IMC) Excellence Award Association Outsourcing Digital Technology Award 2018 Top Transformation Business Professionals (IAOP) 2019 Global for TruBot Partner Outsourcing 100 List Computer Society of India (CSI) CIO
Slide 29: Recent Recognitions
Recent Recognitions Gartner recognizes Datamatics in TruCap+ features in Everest’s Intelligent Forrester recognizes Datamatics in Now Competitive Landscape: Consulting & Document Processing – Technology Tech: RPA Services System Integration Service Providers for Vendor Landscape PEAK Matrix™ 2019 RP
Slide 30: Certifications
Certifications A1 Rating Re-appraised Certified Certified SSAE 16 SOC 1 & SOC Financial Stability SEI CMMI Level 4, ISO 27001-2013 ISO 9001-2015 II with HiTRUST V 1.3 (S&P) HIPAA Compliant © Copyright 2019 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 30
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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