Slide 1: Exchange filing cover letter for Q1 FY24 investor presentation
Date: 17th August, 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 Subject:- Investor/Analyst P
Slide 2: Q1FY24 Investor Presentation
1 Q1FY24 INVESTOR PRESENTATION © SIGMA SOLVE LTD. ALL RIGHTS | Q1FY24 EARNINGS PRESENTATION WWW.SIGMASOLVE.COM
Slide 3: Disclaimer
2 SIGMA SOLVE LTD Q1FY24 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. Q1FY24 Highlights 03. Investment Thesis 04. Appendix © SIGMA SOLVE LTD. ALL RIGHTS | Q1FY24 EARNINGS PRESENTATION WWW.SIGMASOLVE.COM
Slide 5: Business Overview
4 Business Overview SIGMA SOLVE LTD © SIGMA SOLVE LTD. ALL RIGHTS | Q1FY24 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 Q11FFYY2244 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 | Q1FY24 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: Q1FY24 Business Highlights
11 Q1FY24 Business Highlights SIGMA SOLVE LTD © SIGMA SOLVE LTD. ALL RIGHTS | Q1FY24 EARNINGS PRESENTATION WWW.SIGMASOLVE.COM
Slide 13: Management Commentary
12 SIGMA SOLVE LTD Management Commentary “I am delighted to share that we have delivered strong YoY. PAT Margins for the quarter stood at 33%. results in Q1FY24. During the quarter, we successfully I am also thrilled to announce that we have achieved secured key deals and ventured into proprietary p
Slide 14: Q1FY24 Business Highlights
13 SIGMA SOLVE LTD Q1FY24 Business Highlights Financial Performance Expansion Plans Growth Drivers • Revenue from Operations increased by • Established a new state-of-the-art office • Engaging in talks with Oracle for 36% over same period last year with 200+ capacity in Ahmedabad, India technologica
Slide 15: Q1FY24 Financial Snapshot
14 SIGMA SOLVE LTD Q1FY24 Financial Snapshot 180 57% 60% 163 160 50% 136 140 43% 120 120 40% 33% 100 28% 30% 78 80 70 27% 60 21% 54 20% 38 40 33 25 10% 20 0 0% Q1FY23 Q4FY23 Q1FY24 Revenue from Operations EBITDA PAT EBITDA Margins PAT Margins Consolidate Financials - ₹ in Millions © SIGMA SOLVE LTD.
Slide 16: Well Diversified Revenue Stream
15 SIGMA SOLVE LTD Well Diversified Revenue Stream REVENUE AS PER SERVICES REVENUE AS PER GEOGRAPHIES 5% 5% Cloud Solutions 5% 10% 5% US 20% Design Ui-Ux Canada 5% Mobile Application UK 5% Automation Australia 20% Middle East Ecommerce 5% Logistics Solutions Digital Marketing 80% 5% Full Stack 30% D
Slide 17: Operational Matrix
16 SIGMA SOLVE LTD Operational Matrix TOTAL EMPLOYEES (NOS.) EMPLOYEES ATTRITION (%) 5% 156 131 122 2% 2% 34 37 24 Q1FY23 Q4FY23 Q1FY23-24 Q1FY23 Q4FY23 Q1FY23-24 Sales & Support Team Development Team © SIGMA SOLVE LTD. ALL RIGHTS | Q1FY24 EARNINGS PRESENTATION WWW.SIGMASOLVE.COM
Slide 18: Key Deal Wins In Q1FY24
17 SIGMA SOLVE LTD Key Deal Wins In Q1FY24 Logistics CRM Robotic Process Generative AI Automation /ChatGPT Sigma Solve, Inc created their own product Sigma Solve Inc provided Robotic Process Sigma Solve Inc has collaborated with several for the Logistics and Supply Chain companies Automation service
Slide 19: Consolidated Financial Statement
18 SIGMA SOLVE LTD Particulars (₹ Mn) Q1 FY24 Q1 FY23 YoY% Q4 FY23 Consolidated Revenue from Operations Other Income 162.9 11.9 119.8 -6.8 36% --- 136.4 15.7 Financial Total Revenue 174.8 113.0 55% 152.1 Statement Total Expenses excluding Depreciation, Amortization & Finance Cost 105.2 79.9 32% 74.5
Slide 20: Investment Thesis
19 Investment Thesis SIGMA SOLVE LTD © SIGMA SOLVE LTD. ALL RIGHTS | Q1FY24 EARNINGS PRESENTATION WWW.SIGMASOLVE.COM
Slide 21: Investment Thesis
20 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 22: Leadership
21 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 23: Hybrid Model Delivery by Tech-Driven Employees
22 SIGMA SOLVE LTD Hybrid Model Delivery by Tech-Driven Employees No. of Employees (Approx) & Employee cost as % of Revenues 250 38% • The company excels with a dynamic team of 36% 37% 37% 200+ professionals. 200 • It utilizes a hybrid model for effective 36% 33% 35% communication and cost-efficienc
Slide 24: Global Tie-ups & Diversified Client Base
23 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 25: Simplification of Group Structure
24 SIGMA SOLVE LTD Simplification of Group Structure CURRENT GROUP FUTURE GROUP STRUCTURE STRUCTURE SIGMA SOLVE LIMITED ~ 59.81% STAKE SIGMA SOLVE INC Steps Sigma Solve Inc. is a subsidiary of Sigma Solve Limited which is based out of the SIGMA SOLVE LIMITED USA. It acts as an ambassador to In order
Slide 26: Deep Service Expertise
25 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 27: Technology Platforms Expertise
26 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 28: Engagement Models
27 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 29: Well Established Global Footprints
28 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 30: Healthy Project Pipeline
29 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 31: Growth Plans For FY24 and Beyond
30 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 32: Appendix
31 Appendix SIGMA SOLVE LTD © SIGMA SOLVE LTD. ALL RIGHTS | Q1FY24 EARNINGS PRESENTATION WWW.SIGMASOLVE.COM
Slide 33: Industry Opportunities - Impetus for Growth
32 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 34: Unfolding the Growth Story
33 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 35: Strong Financial Growth Trajectory
34 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 36: Consolidated Income Statement
35 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 37: Consolidated Balance Sheet
36 Sigma Solve Ltd Consolidated Balance Sheet Balance Sheet (₹ Mn) FY21 FY22 FY23 Balance Sheet (₹ Mn) FY21 FY22 FY23 Assets Equity PP&E 6.88 5.74 6.25 Equity Share Capital 41.11 41.11 102.78 Capital WIP 0.06 0.06 65.82 Reserves & Surplus 96.46 188.24 238.98 Intangible Assets 0.10 0.07 0.04 Minority
Slide 38: Shareholding Pattern
37 SIGMA SOLVE LTD Shareholding Pattern SYMBOL 543917 SIGMA As of 30th June'2023 LISTED BSE (Main) NSE (Main) MKT CAP (As on 17th Rs. 483 Crores Rs. 504 Crores August 2023) 52 WEEK HIGH/LOW Rs. 505.80/297.50 Rs.502.70/297.25 CURRENT MARKET Rs. 490 Rs.490 27% PRICE (as on 17th August 2023) Shareholdi
Slide 39: 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