Datamatics Global Services Limited · NSE:DATAMATICS
Datamatics Global Services — Q3 FY2023 Earnings Presentation
27 slides from Datamatics Global Services's earnings presentation, Jan 19, 2023
Slide 1: Investor Presentation Q3FY23
Investor Presentation Q3FY23 19th January 2023 1
Slide 2: Disclaimer
Disclaimer This presentation and the following discussion may contain “forward looking statements” by Datamatics Global Services (“DGS” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financia
Slide 3: Agenda
Agenda 1 About Datamatics 2 Growth Strategy & Investment Rationale 3 Financial Performance 4 Awards & Recognition 3
Slide 4: About Datamatics
About Datamatics 4
Slide 5: Datamatics Overview
Datamatics Overview We build intelligent solutions for data-driven businesses to enhance their productivity and customer experience Strong Revenue and PAT Growth Key Focus Areas Own IP Products 9MFY23 Digital Transformation TruCap+, TruBot, iPM, TruBI, TruAI, Revenue INR 1,043 Crore up by 17.5%; Int
Slide 6: Technologies, Operations, Experiences
Application Modernisation Finance & Accounting Banking Process Management Cloud & DevOps Digital Insurance Process Management Big Data & Analytics Technologies Digital Content Management Artificial Intelligence & Cognitive Services Digital Intelligent Automation Operations Mobility & Portals Digital
Slide 7: Digital Operations (Figures in INR Crore)
Digital Operations (Figures in INR Crore) “ Happy with the value addition by Datamatics to our organisation in terms of Procure to Pay function and 23.3% 22.7% also continuing with the ” 20.3% 21.4% 20.7% 19.8% 19.5% 16.5% 17.2% add on developments. Regional Finance Controller, A leading cooling app
Slide 8: Digital Experiences (Figures in INR Crore)
Digital Experiences (Figures in INR Crore) “ 27.8% 25.4% We are confident with this 23.2% strategic partnership that 24.0% 17.0% we will see immense transformational value ” 12.3% 11.2% added to our global 7.1% premium services. 4.7% Managing Partner, 35 38 39 37 42 40 46 52 61 A leader in premium i
Slide 9: Digital Technologies (Figures in INR Crore)
Digital Technologies (Figures in INR Crore) “ 41 Datamatics’ flexible approach 7.4% 8.3% and their culture of adoption has made them a tremendously ” 4.6% 4.9% 4.6% 2.6% 2.2% valuable partner. 117 119 124 135 136 131 133 148 159 Vice President - IT, Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q
Slide 10: Journey So Far…
Acquired TechJini, boutique mobile & 2017 web technology provider India Journey So Far… 2003 Acquired Saztec USA Acquired RJGlobus Solutions, voice & 2018 text based customer service provider Acquired Corpay for Accounts 2003 Payable solutions USA Gartner Peer Insights Customer choice 1975 Datamatic
Slide 11: Our Growth Performance (Figures in INR Crore)
Our Growth Performance (Figures in INR Crore) Consolidated Revenue Consolidated PAT 442 550 734 828 816 852 910 1,134 1,203 1,149 1,201 1,043 28 31 58 49 44 64 72 84 62 84 155 127 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 9MFY23 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 9MF
Slide 12: Growth Strategy & Investment Rationale
Growth Strategy & Investment Rationale 12
Slide 13: Growth Strategy
Growth Strategy Deep in Digital Focus on Automatic Fare Increase Invest in Product Collection (AFC) Account Branding and and Platforms Penetration Marketing 13
Slide 14: Investment Rationale: Business
Investment Rationale: Business Deep in Digital IP Products • Developed own IP products in • Offers Digital Operations, Digital high growth markets - TruCap+, Technologies and Digital TruBot, iPM, TruBI, TruAI, TruFare Experiences to boost productivity, customer experience, and competitive advantage
Slide 15: Financial Performance
Financial Performance 15
Slide 16: Key Performance Indicators
Key Performance Indicators (Figures in INR Crore) Revenues EBITDA & Margins (%) EBIT & Margins % 16.1% 13.3% 12.4% 11.8% 10.3% 9.5% 8.9% 9.0% 7.2% 6.8% 910 1,134 1,203 1,149 1,201 82 134 124 142 193 62 108 87 103 160 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 PAT afte
Slide 17: Consolidated Financial Summary – Q3FY23
Consolidated Financial Summary – Q3FY23 Particulars (in INR Crore) Q3FY23 Q2FY23 QoQ Growth Q3FY22 YoY Growth 9MFY23 9MFY22 YoY Growth Revenue from Operations 372.6 343.4 8.5% 300.8 23.9% 1042.9 887.8 17.5% Other Income 10.6 9.6 10.0% 5.7 86.9% 33.4 14.2 135.6% Total Revenue 383.2 353.0 8.6% 306.4 2
Slide 18: Consolidated Financial Highlights – Q3FY23
Consolidated Financial Highlights – Q3FY23 (Figures in INR Crore) PAT after NCI & Operating Revenues EBITDA & EBITDA % EBIT & EBIT % PAT after NCI % 16.8% 15.8% 14.1% 15.0% 13.5% 12.5% 12.1% 11.3% 12.0% 300.8 343.4 372.6 50.5 51.7 59.0 42.5 42.9 50.2 37.0 40.0 45.9 Q3 FY22 Q2 FY23 Q3 FY23 Q3 FY22 Q2
Slide 19: Balance Sheet Metrics – 9MFY23
Balance Sheet Metrices – 9MFY23 (Figures in INR Crore) Days Sales Outstanding Total Cash & Investments (DSO) (Net of debt) Number of days 85 65 74 68 126.9 262.0 428.4 454.7 FY20 FY21 FY22 9MFY23 FY20 FY21 FY22 9MFY23 19
Slide 20: Revenue Segment Analysis – Q3FY23
Revenue Segment Analysis – Q3FY23 (Figures in INR Crore) Digital Operations Digital Experiences Digital Technologies Revenue & EBIT Margin (%) Revenue & EBIT Margin (%) Revenue & EBIT Margin (%) 22.7% 27.8% 19.5% 17.2% 24.0% 25.4% 8.3% 2.2% 136.1 147.8 158.7 123.1 143.2 152.8 41.6 52.4 61.2 Q3 FY22
Slide 21: Revenue Segment Analysis – Q3FY23
Revenue Segment Analysis – Q3FY23 Revenue by Industry Revenue by Geography Other ROW 5% 6% Not for Profit/Govt. BFSI 13% 24% India Retail 29% 8% USA 54% Manufacturing, Education & Infra & Logistics Publishing 12% 22% Technology & Consulting UK & Europe 16% 11% 21
Slide 22: Client Concentration – Q3FY23
Client Concentration – Q3FY23 Client concentration maintained at a comfortable level Top 5 Top 10 Top 20 53% 52% 41% 37% 27% 24% Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 22
Slide 23: Key Deal Wins – Q3FY23
Key Deal Wins – Q3FY23 A US based Fortune 500 A US based electric utility A leading general insuarance engineering company selects company selects Datamatics for company selects Datamatics for Datamatics for digitizing Finance Digital Business Automation digitizing health and motor & Accounting oper
Slide 24: Recognition
Recognition 24
Slide 25: Key Analyst Coverage
Key Analyst Coverage Niche Player Major Contender Product Challenger 2022 Gartner Magic Quadrant for Finance and Accounting Outsourcing Provider LensTM – IA Services and Featured in Robotic Process Automation Finance & Accounting BPO Services (FAO) Services PEAK Matrix – 2022 Solutions 2022 (RPA) St
Slide 26: Shareholder Value Creation
Shareholder Value Creation Total Shareholder Return Relative Stock Price Performance 120.0 Returns Datamatics BSE IT Sensex 100.0 1 Year -19.4% -21.8% 0.5% 3 Year 251.3% 85.3% 47.0% 80.0 5 Year 110.6% 142.7% 73.1% 60.0 Sensex BSE IT Datamatics 26
Slide 27: Thank You
Thank You For Further Queries Contact: Mr. Sandeep Mantri Chief Financial Officer investorrelations@datamatics.com Pratik Jagtap / Asha Gupta pratik.jagtap@in.ey.com asha.gupta@in.ey.com © Copyright 2022 Datamatics Global Services Limited and its subsidiaries (hereinafter jointly referred as Datamat
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