Sigma Solve Ltd · NSE:SIGMA
Sigma Solve — H1 FY2024 Earnings Presentation
40 slides from Sigma Solve's earnings presentation, Nov 17, 2023
Slide 1: Cover letter to NSE and BSE
Date:- 17th November, 2023 To, National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra-Kurla Complex Phiroze Jeejeebhoy Towers Bandra (E), Mumbai- 400 051, Dalal Streel Mumbai-400 001 Maharashtra, INDIA Maharashtra, INDIA Symbol: SIGMA Scrip Code: 543917 Sub.:- Investor/Analyst P
Slide 2: H1&Q2FY24 Investor Presentation
1 H1&Q2FY24 INVESTOR PRESENTATION © SIGMA SOLVE LTD. ALL RIGHTS | Q2FY24 EARNINGS PRESENTATION WWW.SIGMASOLVE.COM
Slide 3: Disclaimer
2 SIGMA SOLVE LTD Q2FY24 Disclaimer This presentation and the accompanying forward-looking statements that involve a This Presentation has been prepared by the slides (the “Presentation”), have been number of risks and uncertainties that could Company based on information and data prepared by Sigma
Slide 4: Table of Contents
3 Table of Contents 01. Business Overview 02. H1 & Q2FY24 Highlights 03. Investment Thesis 04. Appendix © SIGMA SOLVE LTD. ALL RIGHTS | Q2FY24 EARNINGS PRESENTATION WWW.SIGMASOLVE.COM
Slide 5: Business Overview
4 Business Overview SIGMA SOLVE LTD © SIGMA SOLVE LTD. ALL RIGHTS | Q2FY24 EARNINGS PRESENTATION WWW.SIGMASOLVE.COM
Slide 6: Hello, Welcome to the future
5 Hello, Welcome to the future Reinventing Businesses Through AI and Innovative Digital Solutions Ranked # 2021 Inc 5000 America’s fastest growing 5000 companies © © SSIIGGM MAA SSO OLLVVEE LLTTD D.. AALLLL RRIIGGH HTTSS || Q Q22FFYY2244 EEAARRN NIIN NGGSS PPRREESSEEN NTTAATTIIO ONN WWW.SIGMASOLVE.C
Slide 7: Business Overview
6 DIGITAL INNOVATION Business Overview • Digital Transformation Sigma Solve Inc stands at the forefront of AI and Digital • AI, RPA & ML Services transformation companies, swiftly advancing in the • Generative AI competitive landscape of America. • Data Analytics Services 15+ years of experience in
Slide 8: Our Vision
7 SIGMA SOLVE LTD Our Vision Delivering innovative, comprehensive, and budget-friendly digital solutions to clients worldwide, harnessing the power of technology to establish a global impact in the digital landscape. © SIGMA SOLVE LTD. ALL RIGHTS | Q2FY24 EARNINGS PRESENTATION WWW.SIGMASOLVE.COM
Slide 9: Our Mission
8 SIGMA SOLVE LTD Our Mission Our guiding philosophy revolves around assisting our clients in staying ahead of the curve amidst the fast-paced world, ensuring their growth and success by embracing forward-looking technologies and services. Mission #01 Our mission is to deliver on the potential of te
Slide 10: Value Proposition
9 SIGMA SOLVE LTD Value Proposition Reliable innovation, trusted growth partnerships. Delivering on promises for cutting-edge success. We embody the spirit of reinvention, fueling With a relentless pursuit of innovation, we provide We are committed to upholding our credibility, business transformati
Slide 11: Over a Decade of Experience
10 SIGMA SOLVE LTD Over a Decade of Experience Prepared to join the industry's leaders, making a significant impact and embracing success on a grand scale. 2010 2014 2018 2020 2022 2023 Incorporated as Initial partnerships Microsoft .NET Listed on the Reached milestone of Got Listed on NSE & Sigma S
Slide 12: H1&Q2FY24 Business Highlights
11 H1&Q2FY24 Business Highlights SIGMA SOLVE LTD © SIGMA SOLVE LTD. ALL RIGHTS | Q2FY24 EARNINGS PRESENTATION WWW.SIGMASOLVE.COM
Slide 13: Management Commentary
12 SIGMA SOLVE LTD Management Commentary “I'm pleased to share that we achieved a robust growth in H1FY24. During the quarter, we strategically invested $100k in a USA-based AI company focused on QA Automation. We also launched a paralegal outsourcing segment through a partnership with Para Legal Pl
Slide 14: H1FY24 Business Highlights
13 SIGMA SOLVE LTD H1FY24 Business Highlights Financial Performance Strategic Collaborations Growth Drivers • Total Income in H1FY24 increased by 30% • Invested $100k in a USA-based AI company • Boosting employee morale by awarding YoY specializing in QA Automation; higher appraisals leading to low
Slide 15: H1FY24 Financial Snapshot
14 SIGMA SOLVE LTD H1FY24 Financial Snapshot 326 43% 276 38% 29% 29% 140 106 94 80 H1FY23 H1FY24 Revenue from Operations EBITDA PAT EBITDA Margins PAT Margins Consolidate Financials - ₹ in Millions © SIGMA SOLVE LTD. ALL RIGHTS | Q2FY24 EARNINGS PRESENTATION WWW.SIGMASOLVE.COM
Slide 16: Well Diversified Revenue Stream
15 SIGMA SOLVE LTD Well Diversified Revenue Stream REVENUE AS PER SERVICES REVENUE AS PER GEOGRAPHIES 5% Cloud Solutions 5% 10% 5% US 20% Design Ui-Ux 5% Canada Mobile Application 5% UK 5% 10% Automation Australia Middle East Ecommerce 10% Logistics Solutions Digital Marketing 20% Full Stack 80% 20%
Slide 17: Operational Metric
16 SIGMA SOLVE LTD Operational Metric TOTAL EMPLOYEES (NOS.) EMPLOYEES ATTRITION (%) 169 156 3% 2% 24 15 Q1FY24 Q2FY24 Q1FY24 Q2FY24 Sales & Support Team Development Team © SIGMA SOLVE LTD. ALL RIGHTS | Q2FY24 EARNINGS PRESENTATION WWW.SIGMASOLVE.COM
Slide 18: Order Book
17 SIGMA SOLVE LTD Order Book Order Book • Order Book in Q2FY24 stood at US $200k. Pipeline • Projects in pipeline stood at US $250k Growth • There was a growth of 25% YoY. © SIGMA SOLVE LTD. ALL RIGHTS | Q2FY24 EARNINGS PRESENTATION WWW.SIGMASOLVE.COM
Slide 19: Key Deal Wins In Q2FY24
18 SIGMA SOLVE LTD Key Deal Wins In Q2FY24 Generative AI/ChatGPT Dental Insurance Software In the process of developing AI-based Collaborated with a USA-based Dental chat GPT software designed for wineries, Insurance company to create dental insurance Chat bot solutions & eCommerce. software. 02 03
Slide 20: Consolidated Financial Statement
19 SIGMA SOLVE LTD Particulars (₹ Mn) H1 FY24 H1 FY23 YoY% Q2 FY24 Consolidated Revenue from Operations Other Income 325.9 24.4 276.2 -6.8 18% --- 163.0 12.4 Financial Total Income 350.3 269.4 30% 175.4 Statement Total Expenses excluding Depreciation, Amortization & Finance Cost 210.2 163.5 29% 104.
Slide 21: Simplification of Group Structure
20 SIGMA SOLVE LTD Simplification of Group Structure PREVIOUS GROUP CURRENT GROUP STRUCTURE In October’23, management completed the financial STRUCTURE restructuring at a $5.07 million valuation (significant discount to market cap of Rs.4,960 million) for a 40.19% stake, giving Sigma Solve Limited s
Slide 22: Investment Thesis
21 Investment Thesis SIGMA SOLVE LTD © SIGMA SOLVE LTD. ALL RIGHTS | Q2FY24 EARNINGS PRESENTATION WWW.SIGMASOLVE.COM
Slide 23: Investment Thesis
22 01. Technocrat Leadership 02. Dedicated Workforce 03. Global Tie-ups & Marquee Clients 04. Simplification of Group Structure 05. Strong Financial Growth Trajectory 06. Deep Service Expertise 07. Customized Delivery Model 08. Well Diversified Revenue Streams SIGMA SOLVE LTD 09. Well Established Gl
Slide 24: Leadership
23 SIGMA SOLVE LTD Leadership Prerak Parikh Biren Zaverchand Kent Nelson Chinmay Shah CO-FOUNDER CO-FOUNDER VP SALES CFO Bhavin Sanghani Alpesh Sarvaiya Joy Chauhan Ajay Shukla Nehal Shah Cavin Gajjar VP DELIVERY VP ENGINEERING VP OPERATIONS VP MARKETING Pre-sales Manager DB Manager © SIGMA SOLVE LT
Slide 25: Hybrid Model Delivery by Tech-Driven Employees
24 SIGMA SOLVE LTD Hybrid Model Delivery by Tech-Driven Employees No. of Employees (Approx) & Employee cost as % of Revenues • The company excels with a dynamic team of 200+ 250 38% 37% 36% professionals. 37% 200 • It utilizes a hybrid model for effective communication 33% 36% and cost-efficiency 15
Slide 26: Global Tie-ups & Diversified Client Base
25 SIGMA SOLVE LTD Global Tie-ups & Diversified Client Base TECHNOLOGY MARQUEE SERVICING HIGH PARTNERS CLIENTS GROWTH SECTORS • Real Estate • Healthcare • Energy & Utilities • Fintech & Insurance • Manufacturing • Retail & eCommerce • Travel & Hospitality • Logistics & Supply Chain • Education & E-L
Slide 27: Deep Service Expertise
26 SIGMA SOLVE LTD Deep Service Expertise Custom Software Development Mobile App Development Cloud Solutions Advanced knowledge of web Multi-interface mobile app Managed Cloud for Azure application development development using native coding capabilities eCommerce Development Enterprise, ERP & CRM S
Slide 28: Technology Platforms Expertise
27 SIGMA SOLVE LTD Technology Platforms Expertise FRONTEND MOBILE BACKEND React.js Angular.js Vue.js Bootstrap Kotlin Swift Flutter React .Net Java Python PHP Node Native CLOUD COMPUTING/DEVOPS ECOMMERCE MARKETING 360 & ANALYTICS AWS Azure Docker Kubernetes Magento Shopify Shift4shop nopCommerce Tab
Slide 29: Engagement Models
28 SIGMA SOLVE LTD Engagement Models Onsite Hybrid & Partnership Resource on-demand Global development centres Repetitive scope Hybrid / multi-shore resources Agile team Offshore Dedicated Team Fixed cost / hourly projects Long term project / product development Continues communication Extended deve
Slide 30: Well Established Global Footprints
29 SIGMA SOLVE LTD Well Established Global Footprints Florida USA Atlanta USA The Netherlands India Australia 1560 Sawgrass 3350 Riverwood The Netherlands, 801, PV Enclave, Suite 3, 1330 Corporate Parkway, Parkway Amsterdam, Sindhu Bhavan Road, Ferntree Gully Road, Sunrise, Florida 33323 Atlanta GA,
Slide 31: Healthy Project Pipeline
30 SIGMA SOLVE LTD Healthy Project Pipeline Company is witnessing a very strong project pipeline and expects this trend to continue for years to come Services (No. of Projects) 2022(A) 2023(A) 2025(E) 2027(E) Mobile Solution 30 35 49 76 Digital Marketing Services 6 8 10 15 Cloud Solution 6 8 10 15 W
Slide 32: Growth Plans For FY24 and Beyond
31 SIGMA SOLVE LTD Growth Plans Achieve operational efficiencies and higher revenue charge-out rates For FY24 and Continue successful client acquisitions Beyond in various technologies, Strategic acquisitions to drive growth and profitability through global Strong order book, strategic acquisitions,
Slide 33: Appendix
32 Appendix SIGMA SOLVE LTD © SIGMA SOLVE LTD. ALL RIGHTS | Q2FY24 EARNINGS PRESENTATION WWW.SIGMASOLVE.COM
Slide 34: Industry Opportunities - Impetus for Growth
33 SIGMA SOLVE LTD CLOUD PENETRATION REMAINS BELOW 30% IN CRUCIAL VERTICLES Industry Opportunities 25 28 28 25 25 23 25 23 22 - Impetus for Growth 20 20 19 20 20 20 20 20 20 16 20 8 8 5 5 The Future is Cloud • Businesses across the globe have been migrating to Cloud Services SaaS(%) PaaS(%) IaaS(%)
Slide 35: Unfolding the Growth Story
34 SIGMA SOLVE LTD Unfolding the Growth Story Record High Performance; Approval to Migrate Equity to NSE & BSE Approval from NSE & BSE Deal Wins • Received In-principal Approval from NSE and BSE o 20% more deals won than in 2022 for migration of equity shares from NSE Emerge platform to Mainboard of
Slide 36: Strong Financial Growth Trajectory
35 Note - All figures in Rs. Mn SIGMA SOLVE LTD Strong Financial Growth Trajectory Revenue from Operations EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 554 224 34% 153 3 Year CAGR = 74% 37% 40% 28% 411 142 25% 35% 18% 20% 150 212 73 52 104 19 19 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 F
Slide 37: Consolidated Income Statement
36 SIGMA SOLVE LTD Particulars (₹ Mn) FY21 FY22 FY23 Consolidated Revenue from Operations 211.53 410.92 554.46 Income Other Income 3.43 13.57 14.41 Total Income 214.96 424.49 568.88 Statement Employee Benefits Expenses 69.65 152.43 202.22 Other Expenses 68.59 108.36 128.39 EBITDA 73.29 150.13 223.85
Slide 38: Sigma Solve Ltd Consolidated Balance Sheet
37 Sigma Solve Ltd Consolidated Balance Sheet Balance Sheet (₹ Mn) H1FY24 FY23 Balance Sheet (₹ Mn) H1FY24 FY23 Assets Equity PP&E 84.14 8.93 Equity Share Capital 102.77 102.77 Capital WIP - 65.82 Other Equity 319.95 260.36 Intangible Assets 0.03 0.04 Non Controlling Interest 195.15 161.35 Financial
Slide 39: Shareholding Pattern
38 SIGMA SOLVE LTD Shareholding Pattern SYMBOL 543917 SIGMA As of 30 th September 2023 LISTED BSE (Main) NSE (Main) MKT CAP (As on 16th Rs. 475 Crores Rs. 473 Crores November 2023) 52 WEEK HIGH/LOW Rs. 579.25/297.50 Rs.570/297.25 CURRENT MARKET Rs. 462 Rs.460 27% PRICE (as on 16th November 2023) Sha
Slide 40: Thank you
Thank you Investor Relations Contact Tanya Verma Go India Advisors Tanya@GoIndiaAdvisors.com SIGMA SOLVE LTD M:+91 97270 30985 Sana Kapoor Company Contact Go India Advisors sana@GoIndiaAdvisors.com M:+91 81465 50469 079-29708387 Sheetal Khanduja compliance@sigmasolve.net Go India Advisors sheetal@Go