Updater Services Limited · NSE:UDS
Updater Services — Q3 FY2024 Earnings Presentation
58 slides from Updater Services's earnings presentation, Feb 10, 2024
Slide 1: Outcome of Board Meeting letter to exchanges
Redefining Business Service Date: 10.02.2024 To: To: BSE Limited (BSE) National Stock Exchange of India Limited (NSE) Corporate Relationship Department Listing Department Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, 25th Floor, Dalal Street, G Block, Bandra Kurla Complex, Band
Slide 2: Board meeting outcome continued
Redefining Business Service 4. Appointment of Company Secretary and Compliance Officer: Considered and approved the appointment of Ms. Sandhya Saravanan (ACS 66942) as the Company Secretary and Compliance Officer of the Company with effect from February 10, 2024. Detailed information as required und
Slide 3: Monitoring agency report noted; signature
Redefining Business Service 7. Noting the Report of Monitoring agency The Audit Committee and the Board took note of the report of monitoring agency. The Board meeting commenced at 1:00 P.M and concluded at 3:25 P.M Kindly take the above information on your records. For Updater Services Limited RAVI
Slide 4: Limited Review Report on consolidated results
KRM Tower, 1st and 2nd Floors B S R & Co. LLP No. 1, Harrington Road, Chetpet Chennai - 600 031, India Chartered Accountants Telephone: +91 44 4608 3100 Fax: +91 44 4608 3199 Limited Review Report on unaudited consolidated financial results of Updater Services Limited for the quarter ended 31 Decemb
Slide 5: Limited Review Report (Continued)
BSR&Co. LLP Limited Review Report (Continued) Updater Services Limited 7. The consolidated financial results of the Group for the quarter and six months period ended 30 September 2023 were reviewed by the predecessor auditor who had expressed an unmodified opinion. 8. We did not review the interim f
Slide 6: Annexure I: List of entities included
BSR&Co. LLP Limited Review Report (Continued) Updater Services Limited Annexure | List of entities included in unaudited consolidated financial results. Sr. No Name of component Relationship 1 Updater Services Limited Parent Company 2 Wynwy Technologies Private Limited Subsidiary 3 Stanworth Managem
Slide 7: Limited Review Report (Continued)
BSR &Co. LLP Limited Review Report (Continued) Updater Services Limited 21 Denave Pte Limited, Singapore Step-down subsidiary 22 Athena BPO Services Private Limited Subsidiary 23 Athena Call Centre Private Limited Step-down subsidiary ye Page 4 of 4
Slide 8: Consolidated Financial Results Q3 and nine months
Updater Services Registered Office : No. 2/302-A, UDS Salai, Off Old Mahab: Consolidated Fir ited (formerly known as Updater Services Private Limited) ram Road, Thoraipakkam, Chennai 600 097. Corporate Office : First floor, 42, Gandhi Mandapam Road, Kotturpuram, Chennai 600 085. U74140TN2003PLC0S195
Slide 9: Unaudited Consolidated Segment wise Revenue and Results
Updater Services Limited (formerly known as Updater Services Private Limited) Registered Office : No. 2/302-A, UDS Salai, Off Old Mahabalipuram Road, Thoraipakkam, Chennai 600 097. Corporate Office : First floor, 42, Gandhi Mandapam Road, Kotturpuram, Chenr CIN:U74140TN2003PLC0S1955_ Email: complian
Slide 10: Notes to the Unaudited Consolidated Financial Results
Notes to the Unaudited Consoli Financial Results for the ai and nine months ended 31 December 2023 Place Date ‘The above consolidated financial results for the quarter and nine months ended 31 December 2023 were reviewed and recommended by the Audit Committee and thereafter approved by the Board of
Slide 11: Annexure I: Entities in Consolidated Results
Annexure | List of entities included in the Consolidated Financial Results 1. Updater Services Limited — Parent Company 2. Avon Solutions and Logistics Private Limited (Subsidiary) 3. Washroom Hygiene Concept Private Limited (Subsidiary) 4. Matrix Business Services India Private Limited (Subsidiary)
Slide 12: Limited Review Report on standalone results
KRM Tower, 1st and 2nd Floors B S R & Co. LLP No. 1, Harrington Road, Chetpet Chennai — 600 031, India Chartered Accountants Telephone: +91 44 4608 3100 Fax: +91 44 4608 3199 Limited Review Report on unaudited standalone financial results of Updater Services Limited for the quarter ended 31 December
Slide 13: Limited Review Report (Continued)
BSR &Co. LLP Limited Review Report (Continued) Updater Services Limited 6. The standalone financial results of the Company for the quarter and six months ended 30 September 2023 were reviewed by the predecessor auditor who had expressed an unmodified opinion. ForBSR&Co. LLP Chartered Accountants Fir
Slide 14: Standalone Financial Results Q3 and nine months
Updater Services Limited (formerly known as Updater Services Private Limited) Registered Office : No. 2/302-A, UDS Salai, Off Old Mahabalipuram Road, Thoraipakkam, Chennai 600 097. Corporate Office : First floor, 42, Gandhi Mandapam Road, Kotturpuram, Chennai 600 085. CIN:U74140TN2003PLC0S1955_ Emai
Slide 15: Leading Integrated Business Service Platform
Annexure II Updater Services Limited Leading Integrated Business Service Platform Investor Presentation February 2024
Slide 16: Safe Harbor
Safe Harbor This presentation has been prepared by and is the sole responsibility of Updater Services Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or i
Slide 17: Q3 & 9M FY24 Financial Highlights
Q3 & 9M FY24 Financial Highlights
Slide 18: From the MD's Desk
From the MD’s Desk “During Q3 FY24, Total Revenues grew by 18% Y-o-Y to Rs. 6,414 million. The IFM Segment Revenues grew 6% Y-o-Y to Rs. 4,278 million and BSS Segment Revenues grew by 55% Y-o-Y to Rs. 2,288 million in Q3 FY24, mainly due to the acquisition of Athena. Excluding Athena, BSS Segment gr
Slide 19: Q3 FY24 Financial Highlights
Q3 FY24 Financial Highlights Total Revenue Revenue (IFM) Revenue (BSS) Reported EBITDA (Rs. Mn.) (Rs. Mn.)^ (Rs. Mn.)^ (Rs. Mn.) 73.2% 65.2% % of 26.8% 34.8% Sales 3.7% 6.1% +18% +6% +55% 6,414 4,278 2,288 +97% 5,423 4,024 1,473 393 199 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Adj. EB
Slide 20: 9M FY24 Financial Highlights
9M FY24 Financial Highlights Total Revenue Revenue (IFM) Revenue (BSS) Reported EBITDA Adjusted EBITDA (Rs. Mn.) (Rs. Mn.)^ (Rs. Mn.)^ (Rs. Mn.) (Rs. Mn.) % of 72.3% 67.7% 27.7% 32.3% 4.4% 5.7% 6.6% 6.9% Sales +19% +12% +39% +56% +23% 18,242 11,337 12,661 6,048 1,048 1,251 15,360 1,017 4,337 671 9MF
Slide 21: Q3 & 9M FY24 Consolidated Profit & Loss Statement
Q3 & 9M FY24 Consolidated Profit & Loss Statement Particulars (Rs. Million) Q3 FY24 Q3 FY23 Y-o-Y 9M FY24 9M FY23 Y-o-Y Estimated ESOP Cost for FY24 is ~Rs. 110 Mn. Total Revenue from Operations 6,413.7 5,422.8 18% 18,242.1 15,360.4 19% Cost of Services and Other RM 275.9 970.5 2,341.2 2,561.5 Parti
Slide 22: Delivering Value to Stakeholders with IPO
Delivering Value to Stakeholders with IPO October 2023 Listing of Updater Services Limited on BSE & NSE IPO Price: Rs. 300 per share Gross Proceeds from the Fresh Issue: Rs. 400 crores Objects of the Fresh Issue: ✓ Repayment and /or prepayment of certain borrowings availed by our Company; ✓ Funding
Slide 23: Why UDS...
Why UDS...
Slide 24: About Us
About Us Leading Integrated Business Services Platform - Unique mix of businesses transforming from only IFM to integrated platform with BSS 1 2 Transformed into an integrated business services platform offering IFM services and BSS led through strategic acquisitions and Organic Growth 3 PAN-India p
Slide 25: 1. Leading Integrated Business Services Platform
1. Leading Integrated Business Services Platform Integrated Updater Facility Business Support Services Limited Management Services (BSS) (IFM) & Other Services IFM | Integrated Facility 2 BSS | Audit & Assurance BSS | Sales Enablement 1 1 Management (Matrix Business Services) (Denave & Athena BPO) B
Slide 26: 1. Integrated Facility Management (IFM) & Other Services
1. Integrated Facility Management (IFM) & Other Services Soft Services Production Support Engineering Services Institutional Catering Services Mechanical, electrical, and plumbing Housekeeping and cleaning Material handling, material Catering and food (MEP) services. Also referred to as services, di
Slide 27: 1. Business Support Services (BSS)
1. Business Support Services (BSS) Sales Enablement Services Audit & Assurances Employee Background Serving global customers across multiple industries including Services such as supply chain audit including Verification Check Services information technology / information technology enabled services
Slide 28: Transformed into an integrated business services platform
2. Transformed into an integrated business services platform offering IFM services and BSS led through strategic acquisitions and Organic Growth IFM & Others BSS Feminine Hygiene Employee Sales Background Check Enablement FY2023 Soft Services Audit & Assurance Acquired majority FY2022 stake in Athen
Slide 29: PAN India presence with large and efficient workforce
3. PAN India presence with large and efficient workforce Customer Locations Wide spread network with 125 points of ...gives the company competitive advantage 5,087 presence… over its peers in several aspects (excluding staffing locations) Preferred Ability to provide services for companies Service U
Slide 30: Track record of successful acquisitions and seamless integration
4. Track record of successful acquisitions and seamless integration of high margin businesses… Selective Strategic acquisitions as means to expand the operations in value added business support services space ✓ Focus has been to acquire companies and businesses with offerings that are complementary
Slide 31: Selective Strategic Acquisitions in Margin Accretive BSS
… Adhering to which UDS made Selective Strategic Acquisitions in Margin Accretive Business Support Services via multiple tranches Cumulative Association of promoters of acquired Subsidiary Year of acquisition & Stake EBITDA (Rs. Mn.)* Payout entities with UDS Pondicherry Chidambaram Balasubramanian
Slide 32: Longstanding relationship with customers across diverse sectors
5. Longstanding relationship with customers across diverse sectors leading to recurring business IFM and Other Services Business Support Services Customer Base: 1,593 customers Customer Base: 1,723 customers 35.39% 35.30% 33.96% 54.95% 47.91% 46.76% Revenue from Revenue from Top 10 customers Top 10
Slide 33: Technology at the forefront of current and future businesses
6. Technology at the forefront of current and future businesses Adopted technology to optimize productivity and Selectively investing in technology platforms to stay improve cost efficiencies ahead of the curve Enterprise Technology Made a minority investment in Aubotz Lab Private Implemented SAP fo
Slide 34: Experienced Board
7. Experienced Board… Strong standards of corporate governance with experienced directors on board ✓ One of the founding Directors of the Company ✓ B.Com from Sydenham College of Commerce and Economics, University of Bombay, and Diploma in Systems Management ✓ 30 years of experience in the service s
Slide 35: Industry Outlook
Industry Outlook
Slide 36: Outsourced IFM Market in India
Outsourced IFM Market in India | Growth momentum to aid UDS' leading position ... IFM: Well diversified market in terms of end customers… …a large portion of which is currently being served in-house… ResidentialEducation Others Overall IFM Market 5% 4% 2% Healthcare Outsourced Industrial 9% 39.3% FY
Slide 37: Move towards organized integrated players
... further aided by the move towards organized integrated players Increase in Share of Outsourced IFM Preference for Organized/Integrated Consolidation on the rise services Players IFM: IN-HOUSE VS OUTSOURCED SERVICES The market is now shifting from single IFM Un-Organized vs Organized service cont
Slide 38: BSS Industry: Emerging segment with increasing outsourcing potential
BSS Industry | Emerging segment with increasing outsourcing potential Driven by growth in these verticals the Key verticals comprising the ~ Rs. 7,115 Cr BSS Segment and their BSS segment is expected to grow at pie share ~15.3% CAGR during FY23-FY28P Sales Enablement Airport Ground BSS Market Size S
Slide 39: UDS well placed with wide service offerings
UDS well placed with wide service offerings, onboarded through acquisitions Sales Enablement Employee Background Mailroom Business Process Airport Ground Services Verification Management Audits & Assurance Handling Growth Trend (Rs. Crs.) Growth Trend (Rs. Crs.) Growth Trend (Rs. Crs.) Growth Trend
Slide 40: Integrated Business Services Platform with wide-range of services
Integrated Business Services Platform with wide-range of services offered Retail/Trade/Channel Audits & Assurances Waste Management Emergency Services Mail Room Services Background Checks Feminine Hygiene Sales Enablement Food & Catering Capital Projects Airport Ground Hard Services Soft Services Em
Slide 41: Key Growth Strategies
Key Growth Strategies
Slide 42: Key Growth Strategies
Key Growth Strategies Retain, strengthen Introduce new Continue to Grow market share Pursue Inorganic and grow products and improve operating in key segments Growth customer base services margins ✓ Focus on deepening ✓ Existing customer ✓ Catering to existing ✓ Changing business ✓ Strategic acquisit
Slide 43: Unique Well Defined Inorganic Strategy
Unique Well Defined Inorganic Strategy… “PRASAD” - Company’s Acquisition Strategy ✓ Businesses run by experienced promoters who continue Intends to pursue inorganic growth P Promoter Fit to work with the company both to build their original businesses and add value to the overall organization opport
Slide 44: Why UDS...
Why UDS… Unique Integrated Business Support Highly experienced IFM Services Platform with widest offerings in management team with + the Industry support from PE investors BSS Long standing presence in India Technology at the forefront of has helped us gain an our current and future understanding of
Slide 45: Historical Financials
uds Redefining Business Services Historical Financials
Slide 46: Demonstrated Record of Robust Financial Performance
Demonstrated Record of Robust Financial Performance Total Revenue Revenue (IFM) Revenue (BSS) Adj. EBITDA (Rs. Mn.) (Rs. Mn.)^ (Rs. Mn.)^ (Rs. Mn.) Adjusted % of EBITDA 90% 80% 72% 10% 20% 28% 6.1% 7.3% 6.9% Sales Margins +32% 21,061 +17% +40% 14,919 +127% 12,142 15,367 6,121 1,450 11,220 12,183 1,0
Slide 47: Historical Consolidated Profit & Loss Statement
Historical Consolidated Profit & Loss Statement Particulars (Rs. Million) FY23 FY22 FY21 Total Revenue from Operations 21,060.7 14,919.4 12,141.9 Particulars (Rs. Million) FY23 FY22 FY21 Cost of Services and Other RM 3,469.3 1,347.6 316.1 Reported EBITDA 997.7 865.9 702.2 Employee benefits expense (
Slide 48: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet EQUITY & LIABILITIES (Rs. Mn.) Sept-23 Mar-23 Mar-22 Mar-21 ASSETS (Rs. Mn.) Sept-23 Mar-23 Mar-22 Mar-21 Equity Share Capital 667.0 529.5 528.2 528.2 Property, plant and equipment 591.2 607.9 332.0 135.1 Other Equity 7,252.0 3,279.4 2,876.1 2,324.5 Capital Work
Slide 49: Historical Consolidated Cash Flow Statement
Historical Consolidated Cash Flow Statement Cash Flow Statement (Rs. Million) FY23 FY22 FY21 Net Profit Before Tax 541.9 709.4 544.3 Adjustments for: Non - Cash Items / Other Investment or Financial Items 908.0 385.3 236.0 Operating profit before working capital changes 1,449.9 1,094.8 780.2 Changes
Slide 50: Thank You
THANK YOU Company: Updater Services Limited CIN: U74140TN2003PLC051955 Ms. Radha Ramanujan – CFO radha.ramanujan@uds.in Website : www.uds.in Investor Relations: Strategic Growth Advisors Pvt. Ltd. CIN: U74140MH2010PTC204285 Mr. Deven Dhruva / Mr. Varun Shivram deven.dhruva@sgapl.net / varun.shivram@
Slide 51: Annexure III: Company Secretary appointment details
Redefining Business Service Annexure III Details as required under SEBI Circular No. SEBI/HO/CFD/CFD-PoD1/P/CIR/2023/123 dated July 13,2023 S.no Details of events that need to be Information of such events provided 1 Reason for change viz. appointment, re-Appointed as Company Secretary and Key appoi
Slide 52: Monitoring Agency Report December 2023
December 2023 MONITORING AGENCY REPORT Name of the Issuer: Updater Services Limited For quarter ended: December 31, 2024 Name of the Monitoring Agency (MA): ICRA Limited (a) Deviation from the objects of the issue: No deviation - The utilization of the issuance proceeds is in line with the objects o
Slide 53: Issuer Details
December 2023 1. Issuer Details Name of the Issuer: Updater Services Limited Name(s) of the promoters: Promoters Shanthi Tangirala Raghunandana Tangirala Source: BSE Industry/ sector to which it belongs: Manpower Outsourcing and Security Services. 2. Issue Details Issue Period: Opening date- Septemb
Slide 54: Arrangement to ensure monitoring of issue proceeds
December 2023 3. Details of the arrangement made to ensure the monitoring of issue proceeds. Source of information, Comments of certifications considered Comments of the Monitoring Particulars Reply by the Monitoring Agency Board of Agency for the Directors preparation of report -Peer Review CA Cert
Slide 55: Details of the objects to be monitored: cost of objects
December 2023 4. Details of the object(s) to be monitored. (i) Cost of object(s) Source of information, Original Directors Comments of certifications cost (as per Revised Propos the Particulars of S.N. Item Head considered by the the offer cost Reason ed Monitoring firm Monitoring Agency document) [
Slide 56: Progress in the objects
December 2023 (ii) Progress in the object(s) Source of Comments of the Amount utilized information, Amount as [Rs. Crore] Total certifications proposed Directors unutilized Comments of the S.N. Item Head* considered by the in the offer As at the At the amount Monitoring Agency Reasons Proposed Monit
Slide 57: Deployment of unutilized proceeds
December 2023 (iii) Deployment of unutilized proceeds Amount Market Value as Type of instrument and Return on invested Earning at the end of S.N. name of the entity invested Maturity date Investment [Rs. [Rs. Crore] quarter* in [%] Crore] [Rs. Crore] Short Term deposit with 1 55.00 November 10, 2024
Slide 58: Delay in the implementation of the objects
December 2023 (iv) Delay in the implementation of the object(s) Completion date Directors As per the Delay Proposed course of Object(s) offer Actual^ [Number of Reason for delay action document days or months] Repayment and /or prepayment of certain March 31, On Schedule NA borrowings availed by our