Intellect Design Arena Ltd · NSE:INTELLECT
Intellect Design Arena — Q3 FY20 Earnings Presentation
27 slides from Intellect Design Arena's earnings presentation, Feb 14, 2020
Slide 1: Intimation under Regulation 30(6) - results presentation cover letter
intellect® • • Design for Digital Intellect/SEC/2019-20 February 14, 2020 1.The National Stock Exchange of India ltd., Scrip Code: Exchange Plaza, 5th Floor, Plot No. C/l, Intellect G Block, Bandra Kurla Complex, Bandra (E), Mumbai - 400051. 2. The BSE Ltd Scrip Code 1" Floor, New Trade Ring, Rotund
Slide 2: Q3 FY20 Results Earnings Announcement
CONTEXTUAL AND DIGITAL Product to Platform SHIFT Cloud Adoption Q3 FY20 Results ending 31st December, 2019 Earnings Announcement
Slide 3: Safe Harbor Statement
Safe Harbor Statement Certain statements in this release concerning our future prospects are forward-looking statements. Forward-looking statements by their nature involve a number of risks and uncertainties that could cause actual results to differ materially from market expectations. These risks a
Slide 4: Executive Summary Q3 FY20
Executive Summary Q3 FY20 E1: Revenue E3: Gross Margin, EBITDA and PAT • Total Revenue for Q3 FY20 at INR 320 Cr • Gross Margin is INR 149 Cr in Q3 FY20, 46.59% of • In $ terms, Q3 FY20 Revenue at $ 45 Mn revenues • YTD FY20 (9 months) revenue at INR 991 Cr • EBITDA for Q3 FY20 is INR 3.6 Cr and YTD
Slide 5: Executive Summary Q3FY20 (Deals with progressing documentation)
Executive Summary Q3FY20 (*Deals with progressing documentation) E1: Revenue E3: Gross Margin, EBITDA and PAT • Total Revenue for Q3 FY20 at INR 356 Cr • Gross Margin is INR 185 Cr in Q3 FY20, 52% of • In $ terms, Q3 FY20 Revenue at $ 50 Mn revenues • YTD FY20 (9 months) revenue at INR 1027 Cr • EBI
Slide 6: Executive Summary Q3FY20
Executive Summary Q3FY20 E5: iGTB registered INR 121 Cr Revenue E6: Collections and Investment in Product Development • iGTB registered INR 121 Cr revenue in Q3 FY20 (Capitalised) • 65% of its Q3 FY20 revenue is from Advanced Markets • Collections for Q3 FY20 is INR 334 Cr; up by INR 22 cr as • Deal
Slide 7: Q3 FY20 – Revenue at 320.33 Cr
Q3 FY20 – Revenue at 320.33 Cr Q3 FY20 REVENUE (INR) Q3 FY20 REVENUE (US $) EBITDA (INR) GROSS MARGIN (INR) 320.33 Cr $ 44.97 Mn 3.58 Cr 149.22 Cr Q3 FY20 320.33 Cr Q3 FY20 $ 44.97 Mn Q3 FY20 3.58 Cr Q3 FY20 149.22 Cr Q3 FY19 377.94 Cr Q3 FY19 $ 52.43 Mn Q3 FY19 41.91 Cr Q3 FY19 183.24 Cr GROSS MARG
Slide 8: Q3 FY20 – Revenue at 355.95 Cr (Deals with progressing documentation)
Q3 FY20 – Revenue at 355.95 Cr (*Deals with progressing documentation) Q3 FY20 REVENUE (INR) Q3 FY20 REVENUE (US $) EBITDA (INR) GROSS MARGIN (INR) 355.95 Cr $ 49.97 Mn 37.18 Cr 184.84 Cr Q3 FY20 355.95 Cr Q3 FY20 $ 49.97 Mn Q3 FY20 37.18 Cr Q3 FY20 184.84 Cr Q3 FY19 377.94 Cr Q3 FY19 $ 52.43 Mn Q3
Slide 9: Revenue Growth
REVENUE GROWTH Figures in INR Cr. 1502 1459 1446 1388 1400 1200 1069 1000 907 807 800 605 600 400 2014-15 2015-16 2016-17 2017-18 2018 - 19 Q1 FY 20 Q2 FY 20 Q3 FY 2020 LTM Basis LTM = Revenue of current quarter + last three quarters 7
Slide 10: Financial Results for the Third Quarter Ending December 31, 2019
Financial Results for the Third Quarter Ending – December 31, 2019 Additional Information on function wise classification of statement of Profit and Loss of the Group (Consolidated Un-audited / Not Reviewed) Rs. In Lakhs QUARTER ENDED NINE MONTHS ENDED YEAR ENDED Particulars December 31, 2019 Septem
Slide 11: Financial Results for the Third Quarter Ending December 31, 2019 (Deals with progressing documentation)
Financial Results for the Third Quarter Ending – December 31, 2019 (*Deals with progressing documentation) Additional Information on function wise classification of statement of Profit and Loss of the Group (Consolidated Un-audited / Not Reviewed) Rs. In Lakhs QUARTER ENDED NINE MONTHS ENDED YEAR EN
Slide 12: Management Overview – Market Shifts
Management Overview – Market Shifts Shift from Products to Platforms Shift in SaaS/Subscription based offering • Intellect Digital Core IDC 19 is now UK • Significant technology shift in selling Fintech and Europe ready platform for managing solutions in the Market the bank • Digital Transaction Ban
Slide 13: Business levers in growth mode
Business levers in growth mode Positive performance trend Cost has come down AMC revenue 03 Net debt has has gone up come down 02 04 SaaS revenue 01 05 Collection has gone up has gone up *Compared to the previous quarter (Q2 FY 20)
Slide 14: Q3 FY20 – Revenue Highlights
Q3 FY 20 – Revenue Highlights Figures in INR Cr. • Q3 performance looks satisfactory but License AMC would have been better if Intellect had 109 63 63 closed the complex sign-off, post winning 87 60 60 the deal 59 77 56 55 54 • Cloud and SaaS business revenue registers 49 43 50% YoY growth 32 – The
Slide 15: Intellect 2.0 - Started in April 2018 with 3 Focus areas
Intellect 2.0 - Started in April 2018 with 3 Focus areas Intellect 2.0 Customer Industrialisation Centricity Monetisation 13
Slide 16: Intellect 2.0
Intellect 2.0 Investment in Low Coding platforms • Strategy of investing in low coding platforms helps us to be more competitive in the market Focus on Cross-sell with lower efforts, faster cycle time and lower costs and Upsell • Intellect has over 240 • active customers Expanding the focus on 5 cro
Slide 17: Digital Deals and Implementations
Digital Deals and Implementations CONTEXTUAL and DIGITAL is the Key Differentiator 6 17 Total Wins in Q3 FY20 Total including 1 large Digital Implementations in transformation deal Q3 FY20 First time in the history, one of the largest banks in Middle One of the leading providers of long-term mortgag
Slide 18: Collections and DSO
Collections and DSO Collections by GEO GEO Americas Europe MEA India APAC Total INR (Cr) 70.54 116.87 75.40 37.23 34.41 334.45 $Mn 9.88 16.37 10.56 5.22 4.82 46.85 DSO GEO Americas Europe MEA India APAC Total Billed 27 17 108 39 74 47 Net DSO 95 38 183 169 269 132 16
Slide 19: Healthy Pipeline
Healthy Pipeline Active Pursuits – Q3 FY20 • The current funnel of Intellect is around INR 3817 Cr ($ 536 mn), out of which INR 3248 Cr ( $ 456 mn) is accounted by 133 Opportunities • Average deal size in Q3 FY20 stands at INR 16 Cr ($ 2.3 mn) against INR 13 Cr ($ 1.9 mn) in Q3FY19 Destiny Deals 41
Slide 20: Active Pursuits
Active Pursuits Q2 FY20 Q3 FY20 High value active pursuits Active Won Lost Added Active Remarks Pursuits Pursuits 41 8 - - - 8 8 deals from Q2 FY20 • 8 pursuits are of value more than 1 deal Lost INR 50 Cr each 13 - 1 1 13 12 deals from Q2 FY20 1 new deal added • 13 pursuits are of value between INR
Slide 21: Strong Order Backlog
Strong Order backlog Q3 FY20 Q2 FY 20 License Based License Based (License, AMC*, Implementation, etc.,) (License, AMC*, Implementation, etc.,) INR 1125 Cr INR 1100 Cr SaaS and Subscription Based Subscription/Cloud Based INR 375 Cr INR 825 Cr (Excluding order backlog of GeM project) (Including GeM p
Slide 22: Currency wise Revenue Mix
Currency wise Revenue Mix AUD EUR 3% 4% OTHERS 12% USD 34% 15% INR 8% CAD 24% 20 GBP
Slide 23: Revenues across Geographies
Revenues across Geographies ADV. MARKETS ADV. MARKETS Rs 855.58 Cr Rs 842.25 Cr (62%) (62%) Rs 358.80 Cr Rs 365.90 Cr (26%) (27%) REST OF REST OF THE WORLD Rs 174.42 Cr THE WORLD Rs 155.89 Cr (12%) (11%) Q3 FY 20 LTM INDIA Q3 FY 19 LTM INDIA Adv. Markets: Americas, Europe, Australia, New Zealand, Si
Slide 24: Hedging Summary
Hedging Summary FY 2019 – 20 (USD/INR) FY 2020-21 (USD/INR) Quarter $ in Mn Avg Hedge Rate Quarter $ in Mn Avg Hedge Rate Jan 2020 to Mar 2020 14.00 71.48 Apr 2020 to Jun 2020 8.00 71.21 July 2020 to Sep 2020 8.00 71.92 Oct 2020 to Dec 2020 9.00 72.95 Jan 2021 to Mar 2021 9.00 73.64 FY 2020-21 (GBP/
Slide 25: Management Commentary
Management Commentary 23
Slide 26: Management Observations
Management Observations “ Arun Jain, Chairman and Managing Director, Intellect Design Arena Limited said, “While current Quarter revenues have been impacted by documentation challenges, we have moved up assured revenue streams of AMC and SaaS. SaaS revenues, growing by 50%, now contribute to 10% of
Slide 27: © 2020, Intellect Design Arena Limited. All rights reserved.
© 2020, Intellect Design Arena Limited. All rights reserved. These materials are confidential and proprietary to Intellect and no part of these materials should be reproduced, published in any form by any means, electronic or mechanical including photocopy or any information storage or retrieval sys
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