Updater Services Limited · NSE:UDS
Updater Services — Q1 FY24 Earnings Presentation
49 slides from Updater Services's earnings presentation, Oct 19, 2023
Slide 1: Outcome of Board Meeting letter to stock exchanges
Redefining Business Service 19th October 2023 To 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,
Slide 2: Outcome of Board Meeting letter (continued)
Redefining Business Service D. Re-appointment of Thiru P.C. Balasubramanian, Wholetime Director (DIN: 00584548), as Director of Updater Services Limited: Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulation, 2015, it is
Slide 3: Independent Auditor's Review Report on Consolidated Results
SR. BaTLiBot & ASSOCIATES LLP Chartered Accountants 600 113, India Independent Auditor’s Review Report on the Quarterly Unaudited Consolidated Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended Re
Slide 4: Auditor's Review Report (continued)
SR. BaTuBor & AssociATes LLP Chartered Accountants total net profit after tax of Rs. 66.26 million, total comprehensive income of Rs. 69.94 million, for the quarter ended June 30, 2023, as considered in the Statement which have been reviewed by their respective independent auditors. The independent
Slide 5: Annexure 1 - List of entities in consolidated results
SR. BATLIBo!l & Associates LLP Chartered Accountants Annexure 1 — List of entities included in the Consolidated Financial Results PEWS 8. 9. Updater Services Limited — Holding Company Avon Solutions and Logistics Private Limited (Subsidiary) Washroom Hygiene Concept Private Limited (Subsidiary) Matr
Slide 6: Statement of Unaudited Consolidated Financial Results Q1 FY24
Updater Services Li Regd Office : No. 2/302-A, UDS Salai, Off Old Mahab: |, Thoraipakkam, Chennai 600 097 Corporate Office : First Moor, 42, Gandhi Madapam Road, Kotturpuram, Chennai 600 085 CIN:U74140TN2003PLC051955 Email: cot pliance.officer@uds.in Website: www.uds.in Statement of Unaudited Consol
Slide 7: Consolidated Segment wise Revenue, Results, Assets and Liabilities
Updater Services Limited , Off Old Mahabalipuram Road, Thoraipakkam, Chennai 600 097 am Road, Katturpuram, Chennai 600 085 : No. 2/302-A, UDS Sa Corporate Office : First oor, 42, Gandhi Ma CUN:U74140TN2003PLC051955_ Email: compliance.officer@uds.in Websit uds.in ement of Unaudited Consolidated Finan
Slide 8: Notes to Unaudited Consolidated Financial Results
Notes to Unaudited Consolidated Financial Results for the Quarter ended June 30, 2023 (Continued) 6. During the quarter, no stock options were granted to employees (1,052,000 stock options granted for the quarter ended March 31, 2023) and no stock options exercised by cligible cmployees ( no stock o
Slide 9: List of entities included in Consolidated Results
Annexure 1 List of entities included in the Consolidated Financial Results 1. Updater Services Limited ~ Holding 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 10: Independent Auditor's Review Report on Standalone Results
S.R. BATLIBC Chartered Accountants Independent Auditor’s Review Report on the Quarterly Unaudited Standalone Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended Review Report to The Board of Direct
Slide 11: Statement of Unaudited Standalone Financial Results Q1 FY24
Updater Services Limited Regd Office : No, 2/302-A, UDS Salai, Off Old Mahabalipuram Road, Thoraipakkam, Chennai 600 097 Corporate Office : First floor, 42, Gandhi Madap.un Road, Kotturpuram, Chennai 600 085 CIN]U74140TN2003PLCO519SS Email: compliance.officer@uds.in Website: www.uds.in Statement of
Slide 12: Notes to Standalone Financial Results
2 © inted { employces (1,052,000 stock options granted for the quarter ended March 31, 2023) and no stock options for the quarter ended March 31, 2023). The total outstanding stock options as at fer, no stock options were gi ised by eligible employzes ( no stock options exercised by eligible employe
Slide 13: Updater Services Limited - Leading Integrated Business Service Platform
Updater Services Limited Leading Integrated Business Service Platform Investor Presentation October 2023
Slide 14: 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 15: Q1 FY24 Financial Highlights
Q1 FY24 Financial Highlights
Slide 16: From the MD's Desk
From the MD’s Desk “We are thrilled to witness an incredible response to our IPO. We want to convey our sincere appreciation to all the shareholders for entrusting their confidence in us. We also want to offer our heartfelt congratulations to all the stakeholders of the Company, including our employ
Slide 17: Q1 FY24 Financial Highlights
Q1 FY24 Financial Highlights Total Revenue Revenue (IFM) Revenue (BSS) Reported EBITDA Adjusted EBITDA (Rs. Mn.) (Rs. Mn.)^ (Rs. Mn.)^ (Rs. Mn.) (Rs. Mn.) % of 71.6% 70.1% 28.4% 29.9% 4.7% 5.9% 7.6% 6.9% Sales +21% +16% +25% +52% +11% 5,777 4,110 1,753 341 363 401 4,793 3,537 1,403 224 Q1FY23 Q1FY24
Slide 18: Q1 FY24 Consolidated Profit & Loss Statement
Q1 FY24 Consolidated Profit & Loss Statement Particulars (Rs. Million) Q1 FY24 Q1 FY23 Y-o-Y FY23 In Q1FY24, Fair Value Changes in Total Revenue from Operations 5,776.8 4,793.0 21% 21,060.7 Estimated ESOP Cost for FY24 Liability payable/paid to promoters is ~Rs. 110 Mn. of acquired subsidiary is Rs.
Slide 19: 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 20: Why UDS...
Why UDS...
Slide 21: 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 22: 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 23: 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 24: 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 25: Transformed into an integrated platform through acquisitions and organic growth
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 26: 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 4,667 presence… over its peers in several aspects (excluding staffing locations) Preferred Ability to provide services for companies Service U
Slide 27: 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 28: 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 29: 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: 1,556 customers Customer Base: 1,241 customers 35.39% 35.30% 33.96% 54.95% 47.91% 46.76% Revenue from Revenue from Top 10 customers Top 10
Slide 30: 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 31: 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 32: Strong leadership team with support from PE Investors
…with a strong leadership team with support from PE Investors Mr. Raghunandana Tangirala - Promoter, Chairman of the Board & MD Mr. Pondicherry Chidambaram Balasubramanian – ED & WTD ✓ One of the founding Directors of the Company with 30 years of ✓ One of the founding directors and previously served
Slide 33: Industry Outlook
Industry Outlook
Slide 34: 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 35: 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 36: 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 37: 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 38: Integrated Business Services Platform with wide-range of services offered
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 39: Key Growth Strategies
Key Growth Strategies
Slide 40: 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 41: 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 42: 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 43: Historical Financials
uds Redefining Business Services Historical Financials
Slide 44: 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 45: 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 46: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet EQUITY & LIABILITIES (Rs. Mn.) Mar-23 Mar-22 Mar-21 ASSETS (Rs. Mn.) Mar-23 Mar-22 Mar-21 Equity Share Capital 529.5 528.2 528.2 Property, plant and equipment 607.9 332.0 135.1 Other Equity 3,279.4 2,876.1 2,324.5 Capital Work in Progress 0.0 41.2 3.2 Equity att
Slide 47: 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 48: Thank You
THANK YOU Company: Updater Services Limited CIN: U74140TN2003PLC051955 Mr. Balaji Swaminathan – CFO balaji.s@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@sgap
Slide 49: Annexure - Profile of Mr. P.C. Balasubramanian
Redefining Business Service ANNEXURE – 3 Profile of Mr. P.C. Balasubramanian S.No DIN No 00584548 1 Date of Birth & Age 57 years 1 Date of Appointment 31.12.2022 2 Qualifications Chartered Accountant 3 Experience 30 years 4 Expertise in specific functional areas Business Strategy & Development, Comm