Datamatics Global Services Limited · NSE:DATAMATICS
Datamatics Global Services — Q4 FY2020 Earnings Presentation
33 slides from Datamatics Global Services's earnings presentation, May 14, 2020
Slide 1: Cover letter to stock exchanges
Datamatics Global Services Limited Regd. Office: Knowledge Centre, Plot 58, Street No. 17, MIDC, Andheri (East), Mumbai - 400 093. INDIA Tel. : +91 (22) 6102 0000/1/2 | Fax : +91 (22) 2834 3669 CIN : L72200MH1987PLC045205 www.datamatics.com May 15, 2020 To, Corporate Communication Department Listing
Slide 2: Investor Presentation
Investor Presentation 14th May 2020 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 3: Agenda
Agenda Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Certifications Financial 03. Overview © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 2
Slide 4: Agenda
Agenda Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Certifications Financial 03. Overview © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 3
Slide 5: Executive Summary
Executive Summary Nature of Business FY20 Highlights ▪ Global Technology, BPM and Digital ▪ Operating Revenue ₹ 12,033.2 Mn; up Solutions company that builds Business Process IT Services & Engineering 6.2% in rupee terms and 5.5% in Management Cloud Services intelligent solutions for data-driven con
Slide 6: Key Milestones
Key Milestones 2016 Opened new delivery centre in USA 2003 Acquired Saztec USA Acquired TechJini, boutique mobile & 2017 Acquired Corpay for Accounts web technology provider India 2003 Payable solutions USA Acquired RJGlobus Solutions, voice & 1975 Datamatics incorporated 2018 2003 BUPA on boarded a
Slide 7: Line of Business
Line of Business Business Process Artificial Information Management 41% Intelligence 59% Technology (IT) (BPM) (AI) Smart Systems Smart Processes Products Products © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 6
Slide 8: IT Solutions
IT Solutions Offerings Metrics ▪ Application Management Services ▪ Digital Solutions Products ✓ Robotic Process Automation (RPA) 59% ✓ Enterprise Mobility Revenue Contribution ✓ Cloud Solutions ▪ Automated Fare Collection (AFC) Opportunity 11.1% EBITDA Margin ▪ The worldwide IT spending is expected
Slide 9: Business Process Management (BPM)
Business Process Management (BPM) Offerings Metrics ▪ Financial Transaction Processing Products ▪ Content Management & Publishing ▪ Customer Management 41% Revenue Contribution Opportunity 9.1% EBITDA Margin ▪ The global IT-BPM market is expected to touch US$221-$226 billion in 2020, growing at 4%-6
Slide 10: 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 4000+ Active TruBots ▪ TruBot, a vertical-agnostic product is an off-the-shelf software bot th
Slide 11: Agenda
Agenda Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Certifications Financial 03. Overview © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 10
Slide 12: Strategy & Outlook for the Future
Strategy & Outlook for the Future Consistent financial performance Account Penetration & Focus on larger deals Strengthen Partners & Reseller Channel Invest in Automation to improve productivity Digital Solutions Focus on Products – Robotics & Advanced Analytics AFC opportunity – Focus on India and
Slide 13: 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 stable foothold in the IT & ITeS spectr
Slide 14: Agenda
Agenda Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Certifications Financial 03. Overview © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 13
Slide 15: Q4 FY20 – Key Financial Highlights
Q4 FY20 – Key Financial Highlights ▪ Revenue at ₹ 3,103.8 million; up 1.1% y-o-y and up 1.4% q-o-q ▪ Reported EBITDA at ₹ 282.1 million; down 28.0% y-o-y and up 7.4% q-o-q ▪ Reported EBITDA margin was at 9.1%; down 367 bps y-o-y and up 51 bps q-o-q. The margin was mainly impacted due to our continuo
Slide 16: FY20 – Key Financial Highlights
FY20 – Key Financial Highlights ▪ Revenue at ₹ 12,033.2 million; up 6.2% in rupee terms and 5.5% in constant currency y-o-y ▪ Reported EBITDA at ₹ 1,235.7 million; down 7.7% y-o-y ▪ Reported EBITDA margin was at 10.3%; down 154 bps y-o-y. The margin was mainly impacted due to Covid-19 pandemic crisi
Slide 17: Q4 & FY20 – Consolidated Profit and Loss
Q4 & FY20 – Consolidated Profit and Loss Particulars (₹ in Mn) Q4 FY20 Q4 FY19 YoY % Q3 FY20 QoQ % FY20 FY19 YoY % Revenue from Operations 3,103.8 3,068.6 1.1% 3,060.5 1.4% 12,033.2 11,334.9 6.2% Purchase of Products and Licenses 78.5 35.4 32.2 169.8 111.5 Employee Benefits Expenses 2,036.8 1,760.3
Slide 18: FY20 – Consolidated Balance Sheet
FY20 – Consolidated Balance Sheet Particulars (Rs in Mn) FY20 FY19 Particulars (Rs in Mn) FY20 FY19 Equity & Liabilities Assets Non-Current Assets Shareholder’s Funds Fixed Assets 1,180.1 1,177.4 Share Capital 294.8 294.8 Capital work in Progress 7.3 9.8 Other Equity 6648.3 6,104.8 Goodwill 2,030.8
Slide 19: Agenda
Agenda Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Certifications Financial 03. Overview © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 18
Slide 20: Response to COVID-19
Response to COVID-19 ▪ In the wake of COVID-19, Datamatics had its business continuity plan ready and in a matter of days enabled majority of employees to work from home across the globe ▪ Datamatics has clearly defined its priorities during the crisis. These include, ✓ Focusing on employee well-bei
Slide 21: Q4 FY20 – Business Updates
Q4 FY20 – Business Updates ▪ Added 8 new customers in Q4 FY20 and 24 significant new customers in FY20 Business ▪ Over 100 partners across the globe. Notable inclusions in the channel ecosystem Updates are TCS as global strategic partner and Ingram Micro, a global broad-based IT distributor, as pref
Slide 22: Q4 FY20 – Key Result Highlights
Q4 FY20 – Key Result Highlights Operating Revenues Reported EBITDA & EBITDA Margin % 12.8% (In ₹ Mn) (In ₹ Mn) 3,068.6 3,060.5 3,103.8 391.6 9.1% 1.4% 8.6% 7.4% QoQ 262.6 282.1 QoQ 1.1% 28.0% Q4 FY19 Q3 FY20 Q4 FY20 YoY Q4 FY19 Q3 FY20 Q4 FY20 YoY Adjusted PBT & PBT Margin* % Adjusted PAT after NCI
Slide 23: FY20 – Key Result Highlights
FY20 – Key Result Highlights Operating Revenues Reported EBITDA & EBITDA Margin % 11.8% (In ₹ Mn) (In ₹ Mn) 12,033.2 1,338.5 11,334.9 1,235.7 6.2% 7.7% YoY 10.3% YoY FY19 FY20 FY19 FY20 Adjusted PBT & PBT Margin % Adjusted PAT after NCI & PAT after NCI Margin % 10.1% 6.6% 6.6% 1,147.5 (In ₹ Mn) (In
Slide 24: Healthy Balance Sheet Position
Healthy Balance Sheet Position Leverage Analysis Return Ratio Analysis 15.8% 0.10 0.11 0.13 0.05 13.4% 12.9% 6,793 7,163 12.3% 11.3%11.4% 5,827 10.4% 10.1% In ₹ Mn 5,231 658 965 547 359 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 ROCE% ROE% Debt Equity D/E * FY20 ROCE and ROE Ratios adjusted for Goodwil
Slide 25: Cash Flow
Cash Flow Operating Cash Flow Days Sales Outstanding (DSO) 103.9% 82 83 896 79 862 835 68 67.1% 66.9% 67.6% In ₹ Mn 550 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 24 © Co
Slide 26: Q4 & FY20 – Revenue Segment Analysis
Q4 & FY20– Revenue Segment Analysis ITITServices Services Revenues Revenues ––Q4 Q4FY20 FY20 ITITServices Services Revenues Revenues ––FY20 FY20 (In ₹ Mn) (In ₹ Mn) 1,795 1,817 1,781 7,071 1.9% 6,498 QoQ 8.8% YoY 0.7% Q4 FY19 Q3 FY20 Q4 FY20 YoY FY19 FY20 BPM Revenues – Q4 FY20 BPM Revenues – FY20 (
Slide 27: FY20 – Revenue Segment Analysis
FY20 – Revenue Segment Analysis Revenue by Industry Revenue by Geography 6.0% 8.0% 4.0% 2.0% 38.0% 36.0% 14.0% 19.0% 14.0% 14.0% 10.0% 9.0% 27.0% 26.0% 62.0% 57.0% 25.0% 28.0% FY19 FY20 FY19 FY20 BFSI Publishing Manufacturing Others US UK India Europe ROW © Copyright 2020 Datamatics Global Services
Slide 28: FY20 – Client Concentration
FY20 – Client Concentration Client concentration maintained at a comfortable level FY19 FY20 46% 49% 33% 35% 24% 24% Top 5 Top 10 Top 20 Top 5 Top 10 Top 20 © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 27
Slide 29: Agenda
Agenda Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Certifications Financial 03. Overview © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 28
Slide 30: Key Analyst Coverage
Key Analyst Coverage Everest recognizes Datamatics as a Datamatics Finance and Accounting TruCap+ recognized as MAJOR Star Performer in Finance and Solutions recognised in ‘Datamatics: CONTENDER in Everest Peak Matrix - Accounting (F&A) Digital Capability Re-envisioning Finance through Intelligent D
Slide 31: Recognition: Awards
Recognition: Awards Datamatics featured in TruBot recognized at Rail Analysis India Award MRSI Golden Key Award the IAOP 2020 and 2019 Gold Stevie Award 2020 2020 & 2019 for 2019 for 'Best Business Global Outsourcing 100 for ‘Sales & Customer Automated Fare Impact through List of the world’s best Se
Slide 32: Certifications
Certifications A1 Rating Re-appraised Certified Certified SSAE 18 SOC-1 & Financial Stability SEI CMMI Level 4, ISO 27001-2013 ISO 9001-2015 SOC-2 with HiTrust V 1.3 Mapping (S&P) © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 31
Slide 33: 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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