Spectrum Talent Management Limited · NSE:SPECTSTM
Spectrum Talent Management — Investor Presentation (July 2023)
35 slides from Spectrum Talent Management's investor presentation, Jul 4, 2023
Slide 1: Investors Presentation cover letter to NSE
SYMBOL: SPECTSTM ISIN: INEOOLO01018 To, The Manager-Listing Department, The National Stock Exchange of India Limited, Exchange Plaza, NSE Building, Bandra Kurla Complex,Bandra East, Mumbai-400 051 Subject: Investors Presentation. Respected Sir / Madam, SPECTRUM TALENT MANAGEMENT LTD. Dated: 04.07.20
Slide 2: Spectrum Talent Management Limited Investor Presentation July 2023
Spectrum Talent Management Limited Managing Talent Locally, Globally Investor Presentation July - 2023 s tm p l .c o .i n
Slide 3: Safe Harbor
Safe Harbor This document is prepared only for information purpose and do not solicit/recommend/guide for any Investment/Buy-Sell in any financial instrument of Spectrum Talent Management Limited (“STML”) and/or any of its subsidiary company or associate company. Neither STML nor any of its group co
Slide 4: Inside this Presentation
Inside this Presentation 04-17 18-21 22-25 Company Team Industry Overview Spectrum Dynamics & Tailwinds 26-29 30-36 Strategy & Financials Investment & IPO Details Rationale
Slide 5: Spectrum: Executive Summary
Spectrum: ExecutiveSummary INVOLVED IN 3 KEY VERTICALS EXPANDING GLOBAL PRESENCE ROBUST FINANCIALS & GROWTH • General Staffing • Expanding global presence • Industry-leading margin profile • Recruitment Process Outsourcing • Has closed positions in over 30 countries • Net debt-free status (RPO) • Su
Slide 6: Company Overview
Company Overview Company at a Glance 05 Key Milestones 06 Services Portfolio 07 Leveraging Technology 11 Operating Metrics: Volume Driven Growth 15 Operating Metrics: Diversified Operations 16 Operating Metrics: Segment Bifurcation 17
Slide 7: Company at a Glance
Company at a Glance Spectrum Talent Management Limited (Spectrum) is a fast-growing talent management, deployment and KE Y F ACT S HR services company, involved in the entire talent recruitment and deployment life cycle. 15,700+ WORKFORCE DEPLOYED Offers complete range of services for talent managem
Slide 8: Key Milestones
Key Milestones Incorporated a Converted to a Public Incorporated as subsidiary in the UK, Limited Company and Spectrum Talent i.e., STM Consulting Listed on NSE- Management Private Crossed ₹200 crore Limited Emerge in June 2023 2008 Limited 2017 in Revenue 2020 2022 Milestones Business Founded by fr
Slide 9: Services Portfolio (1/4)
Services Portfolio (1/4) BUS I NE S S VER T I C A L S • Flexi Staffing GENERAL • Industrial Staffing Read More on Slide 08 STAFFING • IT Staffing Recurring revenue stream • Apprenticeship Solution GENERAL • Payroll Management STAFFING • Compliance Management VOLUMES GLOBAL HR SERVICES • Permanent Re
Slide 10: Services Portfolio: General Staffing (2/4)
Services Portfolio: General Staffing (2/4) Flexi Staffing IT Staffing • Manpower deployed as per client needs for specific time periods • Associates deployed at client sites on Spectrum payroll • Strong experience in sourcing and deploying IT talent across the country • All documentation, compliance
Slide 11: Services Portfolio: RPO (3/4)
Services Portfolio: RPO (3/4) RPO IT P E R M A N E N T H IR IN G PER M A N EN T H I R I N G Complete solution for clients in India and abroad to hire talent, based on deep understanding of the client’s business, specific requirements, constraints, and preferences. Recruitment IT IT solutions for spe
Slide 12: Services Portfolio: Global HR Services (4/4)
Services Portfolio: Global HR Services (4/4) GLOBAL HR GL OB A L H R S E R V IC E S SERVICES This vertical is based on leveraging the cost arbitrage for delivering GLOBAL HR services globally, LOCAL US STAFFING REMOTE RECRUITMENT WORKFORCE with India as the base Off er i ng l oc a l t a le n t Deplo
Slide 13: Leveraging Technology (1/3)
Leveraging Technology (1/3) • A deeply integrated Employee Life Cycle Digitalised technology function within the organization • Technology is the foundation SOURCING RECRUITING ONBOARDING PAYROLLING COMPLIANCE M ANAGEM ENT for our operational efficiency and to maximize the potential of our resources
Slide 14: Leveraging Technology (2/3)
Leveraging Technology (2/3) Key Tools & Platforms AS S O CI AT E T O O L S HRM S T O O L S SMT+ STM NEXT STMPL HR SUITE EPAY • An in-house developed self- • A sales workforce management • Internal workflow management • A licensed third-party payroll service portal mobile application application for
Slide 15: Leveraging Technology (3/3)
Leveraging Technology (3/3) 14
Slide 16: Leveraging Technology (3/3)
Leveraging Technology (3/3) 15
Slide 17: Operating Matrix – Volume Driven Growth
Operating Matrix – Volume Driven Growth Total Headcount Total Core Headcount Deployment - Staffing Deployment - NAPS/NATS Core Strength 382 302 312 5,318* 243 15,362 11,928 13,031 10,889 FY20 FY21 FY22 Dec-22 FY20 FY21 FY22 Dec-22 Consistent growth in total headcount over the years *NAPS & NATS star
Slide 18: Operating Metrics: Diversified Operations
Operating Metrics: DiversifiedOperations DIVERSIFIED INDUSTRY BASE, WITH DIVSERSIFIED BUSINESS REVENUES DIVSERSIFIED CLIENT BASE WITH NO RETAIL, ENGINEERING, MANUFACTURING WITH NO SIGNIFICANT DEPEDENCE ON SIGNIFICANT DEPEDENCE ON ANY AND BFSI AS CORE CONTRIBUTORS ANY ONE PARTICULAR INDUSTRY CLIENT S
Slide 19: Operating Metrics: Segment Bifurcation
Operating Metrics: SegmentBifurcation Segment Revenue Bifurcation Segment PBIT Contribution Segment PBIT Profile (₹ I N CRO RE S ) (₹ I N CRO RE S ) (% ) Covid 202* Covid Covid impact impact impact 101* 3.30* 1.48* 1.5%* 1.4%* 323 300 383 382 8.46 4.68 14.07 17.34 2.6% 1.5% 3.8% 4.8% FY20 FY21 FY22
Slide 20: Team Spectrum
Team Spectrum Our Founders 19 Board of Directors 20 Senior Management Personnel 21
Slide 21: Our Founders
Our Founders Mr. Vidur Gupta Mr. Sidharth Agarwal MA N A G I N G D I R E C T O R WH O L E - TI M E D I R E C TO R Mr. Vidur Gupta, aged 38 Years, is the Mr. Sidharth Agarwal, aged 38 Years, Co- founder, Promoter and Managing is the Co- founder, Promoter, Whole- Time Director of the Company. He holds
Slide 22: Board of Directors
Board ofDirectors Mr. Rajesh Gupta Mr. Rajeev Agarwal Mr. Anup Kumar Jaiswal Ms. Anubha Agarwal Mr. Suresh Kumar Mehra NON- EXECUTIVE DIRECTOR NON- EXECUTIVE DIRECTOR INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR Mr. Rajesh Gupta, aged 64, is a Mr. Rajeev Agarwal, aged 65, is a Mr.
Slide 23: Senior Management Personnel
Senior ManagementPersonnel Mr. Atanu Banerjee Mr. Nikhil Kumar Mr. Ramgopal Nanda Mr. Ashish Kumar Sahoo Mr. Madhu Kadavath Sukumari CEO – STAFFING DIVISION GENERAL MANAGER, VP - IT STAFFING, VP – HR & ADMIN ASSOCIATE VICE PRESIDENT – APPRENTICESHIP RPO & RECRUITMENT US STAFFING BUSINESS Mr. Banerje
Slide 24: Industry Dynamics & Tailwinds
Industry Dynamics & Tailwinds Flexi Staffing Industry: Overview 24 Long-Term Industry Tailwinds 25
Slide 25: Flexi Staffing Industry: Overview
Flexi Staffing Industry:Overview Indian Flexi Staffing Employment • The Indian flexi staffing industry has made a strong come back and registered 22% growth in headcount in FY22. Muted growth in FY21 was 14,00,000 due to COVID-19-related disruptions. Covid disruption, slowing • General staffing was
Slide 26: Flexi Staffing Industry: Overview
Flexi Staffing Industry:Overview Flexi staffing industry General staffing industry • Overall, the flexi staffing industry reported robust New employment growth (QoQ) Employment growth trend (QoQ) new employment growth of 20% YoY in Q2FY23 over Q2FY22. 9.60 • All key markets are now stabilizing with
Slide 27: Long-Term Industry Tailwinds
Long-Term IndustryTailwinds India’s growing labour market Adoption of flexible working environment • India to maintain its position as the fastest-growing major economy • Accelerated and sustained adoption of newer working formats such as • One of the world’s largest workforces and one of the larges
Slide 28: Investment Rationale & Strategy
Investment Rationale & Strategy Investment Rationale 28 Roadmap for Achieving Scale 29
Slide 29: Investment Rationale
Investment Rationale ROBUST FINANCIAL BALANCED BUSINESS FIRST- GENERATION FOCUS ON VALUE- LONG INDUSTRY- PROFILE MODEL TO DELIVER FOUNDER- DRIVEN ADDED SERVICES RUNWAY FOR GROWTH SCALE & MANAGEMENT COUPLED WITH UNDER- PROFITABILITY PENETRATED INDUSTRY • Profitable since • Balanced focus on • Founded
Slide 30: Roadmap To Achieve Scale
Roadmap ToAchieve Scale STAFFING BUSINESS TO HIGH PROFITABILITY RPO SCALING IT STAFFING & US AGGRESSIVE CLIENT SCALING EMERGING CONTRIBUTE VOLUMES BUSINESS TO OPTIMIZE STAFFING VERTICALS, ACQUSITION STRATEGY INDUSTRIES AND OVERALL GROWTH CAPITAL RETURN RATIOS INCLUDING INORGANIC ROUTE • Headcount ha
Slide 31: Financials
Financials Robust Financial Profile 31 Profit & Loss Snapshot 32 Balance Sheet and Cash Flow – Snapshot 33
Slide 32: Robust Financial Profile
Robust FinancialProfile Increasing Scale of Operations Improving Profitability Profile RE V E NUE FRO M O P E RATI O NS PRO FI TABI LI TY M ARG I NS (₹ I N CRO RE S ) (I N % ) Covid 202 impact 3.8% 101 3.3% 3.5% 3.2% 2.8% 2.6% 1.8% 1.6% 323 302 379 373 FY20 FY21 FY22 9MFY23 FY20 FY21 FY22 9MFY23 EBI
Slide 33: Profit & Loss Snapshot
Profit & Loss Snapshot (₹ I N CRO RE S ) PARTICULARS FY20 FY21 FY22 9MFY23 Revenue from Operations 323.32 302.39 483.22 584.03 Core Business 323.32 302.39 379.00 373.58 Non-Core Business 0 0 104.22 210.45 Total Revenue 323.62 302.96 483.22 584.03 Employee Benefit Expenses 308.63 290.65 359.00 349.21
Slide 34: Balance Sheet and Cash Flow - Snapshot
Balance Sheet and Cash Flow- Snapshot Balance sheet (₹ I N CRO RE S ) Cash Flow (₹ I N CRO RE S ) PARTICULARS FY20 FY21 FY22 DEC-22 PARTICULARS FY20 FY21 FY22 9MFY23 Shareholders Fund 14.97 19.66 27.94 48.63 Cash from Operating Activities 5.68 5.70 (7.31) 8.48 Non Current Liability 0.84 0.86 0.95 1.
Slide 35: Contact Us
C ON T AC T U S Spectrum Talent Management Name: Bharat Arora Email: bharat.arora@stmpl.co. in Contact No.: + 91 120 7065 060 428 KAPTIFY Consulting Strategy & Investor Relations | Consulting Email: info@Kaptify.in Contact No.: + 91 845 288 6099
Spectrum Talent Management — Investor Presentation (July 2023) on 6ix