Intellect Design Arena Ltd · NSE:INTELLECT
Intellect Design Arena — Q4 FY20 Earnings Presentation
33 slides from Intellect Design Arena's earnings presentation, Jun 15, 2020
Slide 1: Regulation 30(6) intimation to stock exchanges
INTELLECT /SEC/2020-21 June 15, 2020 National Stock Exchange of India Ltd., INTELLECT Exchange Plaza, 5th Floor, Plot No. /1, G Block, BandraKurla Complex, Bandra (E), Mumbai – 400051 BSE Ltd. 538835 1" Floor, New Trade Ring, Rotunda Building, PJ Towers, Dalal Street, Fort, Mumbai - 400 001. Dear Si
Slide 2: Q4 and FY20 Annual Results Ending 31st March, 2020
CONNECT Q4 AND FY20 ANNUAL RESULTS ENDING 31st MARCH, 2020 JUNE 15, 2020 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: Update on Intellect Strategy
Update on Intellect Strategy We provided a strategic direction three years back for each of our Lines of Business and Products • Intellect strategy has 4 elements : Products, Markets, Customer, MOAT • Since each product requires huge investments and management time in building market acceptance and
Slide 5: iGTB Business Updates
iGTB Business Updates • The Business scaled significantly and doubled from FY17 to FY19 moving from $53m to $100m in two years of rapid growth • FY20 was a year of Product Engineering & Delivery Execution after rapidly growing over the previous 2 years • Postponement of a large deal in Japan and sev
Slide 6: iGTB Business Updates
iGTB Business Updates • In Growth Markets, DTB has the largest Market share with close to 50 installs. • Won 12 Analyst Awards and recognition in FY20 from all leading Analysts (Forrester, IDC, Celent, Aite, IBS) • 34 Customer Awards were won in Corporate Banking by 17 Customers who are powered by i
Slide 7: iGCB: Market Acceptance & Leadership - IDC & Quantum Update
iGCB : Market Acceptance & Leadership - IDC & Quantum Update IDC Product Update Recognized by Analysts Validated by Market Quantum & SME Lending Update Quantum Launch of IDC 19.1 with Open Ranked #1 FOR OPEN BANKING IDC Deals Submitted Results Banking & Regulatory Compliant One of Top 6 Global Vendo
Slide 8: Cambridge-Intellect Executive Leadership Program for Digital Transformation
Thought Leadership Cambridge-Intellect present… The first-ever Executive Leadership Program for Digital Transformation 1 2 3 4 5 6 7 8 9 Think Deep Dive New Leveraging Customised Case Studies Mentoring Curated Graduation Digital. into Business Design Thinking Blueprints and Group from Cambridge Cere
Slide 9: Intellect SEEC Business Updates
Intellect SEEC Business Updates • The Business had a successful FY20 on all 3 dimensions : 1. Major flagship logos won in the US and UK Insurance Market including some of the largest carriers in the world 2. Data and Machine Learning algorithms proved highly effective (92%+) in major use cases at gl
Slide 10: iRTM Business Updates
iRTM Business Updates • Capital Cube (Intellect Treasury) has more than 40 installations. The product is processing more than 2.5 Trillion worth of assets on annualized basis. Reserve Bank of India works on Intellect Treasury. Citibank is using Intellect Treasury for over 34 countries for its Money
Slide 11: iGov Business Updates
iGov Business Updates • The Platform was fully operational in FY20 and underwent several enhancements to meet the Market requirements • Owing to the General Elections, procurement in Q1FY20 was impacted. While the GMV grew subsequently, Covid 19 has again impacted Business in recent months • Governm
Slide 12: iTurmeric
iTurmeric • Intellect launched iTurmeric - a unique platform for progile transformation / modernization of legacy platforms to Cloud ready/ API - microservices driven open architecture and Digital channels in April. • Built on the robust principles of Design Thinking, the platform is the outcome of
Slide 13: Operations
Operations • Cost structure realigned by using Design Thinking practices • Product Innovation • Delivery Excellence – Reduction in implementation cycle by 40% • Defect reduction by 80% • Low coding platform like Purple Fabric, Canvas, ARX, Hub • Our per deal license value has moved up 50% over the l
Slide 14: Business Continuity – Covid 19
Business Continuity – Covid 19 We took several measures – both internal & external - to tackle the COVID pandemic. INTERNAL • Travel Advisories (mid Feb) - Gauging the development of the pandemic, we started and issued travel advisories to all associates • Work from Home (March 25) - Commenced work
Slide 15: Business Continuity – Covid 19
Business Continuity – Covid 19 EXTERNAL • Intellect did a risk assessment in the early days of Covid and two key risks were identified Delayed inflow of Possible deferral collections and of projects by therefore Customers pressure on Cash • The position on these is as follows • Intellect has not com
Slide 16: Managing through uncertainty – Covid 19
Managing through uncertainty – Covid 19 Apart from the internal and external measures, we also analysed the environment, saw emerging trends and encapsulated the learnings Banks are likely to: Covid 19 will impact Banks owing to: • curtail capital spending • deferred loan recoveries and interest • l
Slide 17: Business levers in growth mode during uncertainty
Business levers in growth mode during uncertainty Redefined the Go-To-Market Strategy of our Products and for the key Business needs of Banks/ Insurance Carriers Strategic Shift 1 Focus on existing customers 1 • Enhanced focus on our rich customer asset base of 240+ customers. • Work with them as a
Slide 18: Business levers – Trusted Brand during uncertainty
Business levers – Trusted Brand during uncertainty Submitted RFPs for a value of over $90m post lockdown in various geographies Proud to be a part of Close to finalizing a deal with a RBI's team that supports Central Bank based in Africa critical applications for completely devoid of in-person the N
Slide 19: Executive Summary – Q4 and FY20
Executive Summary – Q4 and FY20 E1: Revenue E2: License, AMC and SaaS Revenue Q4 FY20 Q4 FY20 • Total Revenue for Q4 FY20 at INR 360 Cr • Q4 FY20 License Revenue is INR 101 Cr • In $ terms, Q4 FY20 Revenue at $ 49.7 Mn • Q4 FY20 AMC Revenue is INR 67 Cr • Cloud revenue of Q4 FY20 is INR 38 Cr FY20 F
Slide 20: Executive Summary – Q4 and FY20
Executive Summary – Q4 and FY20 E3: Gross Margin, EBITDA and PAT E4: Order backlog – Cloud/Subscription deals Q4 FY20 • Order backlog relating to License based (License, • Gross Margin is INR 192.74 Cr in Q4 FY20 AMC and implementation ) deals - INR 1150 Cr as of Q4 FY 20 • EBITDA for Q4 FY20 is INR
Slide 21: Executive Summary – Q4 and FY20
Executive Summary – Q4 and FY20 E6: Collections and Investment in Product E7: Cash and Debt position Development (Capitalised) • Cash and Cash Equivalent is INR 134.3Cr Q4 FY 20 • Net Cash is INR (50.90 Cr) • Collections for Q4 FY20 stood at INR 298.48 Cr • Term loan is INR (70.32 Cr) • Investment i
Slide 22: Financial Highlights – Q4 FY20 Revenue at INR 360 Cr
Financial Highlights – Q4 FY20 Revenue at INR 360 Cr Q4 FY20 REVENUE (INR) Q4 FY20 REVENUE (US $) EBITDA (INR) GROSS MARGIN (INR) 360 Cr $ 49.7 Mn 63.93 Cr 192.74 Cr Q4 FY20 360 Cr Q4 FY20 $ 49.7 Mn Q4 FY20 63.93 Cr Q4 FY20 192.74 Cr Q4 FY19 397.5 Cr Q4 FY19 $ 56.4 Mn Q4 FY19 52.13 Cr Q4 FY19 207.24
Slide 23: Financial Highlights - FY20 Revenue at INR 1351 Cr
Financial Highlights - FY20 Revenue at INR 1351 Cr FY20 REVENUE (INR) FY20 REVENUE (US $) EBITDA (INR) GROSS MARGIN (INR) 1351 Cr $ 191 Mn 74.82 Cr 652.2 Cr FY20 1351 Cr FY20 $ 191 Mn FY20 74.82 Cr FY20 652.2 Cr FY19 1458.7 Cr FY19 $ 208.27 Mn FY19 148.50 Cr FY19 721.56 Cr GROSS MARGIN % (INR) LICEN
Slide 24: Strong Order backlog
Strong Order backlog Q4 FY20 Q3 FY 20 License Based License Based (License, AMC*, Implementation, etc.,) (License, AMC*, Implementation, etc.,) INR 1150 Cr INR 1125 Cr SaaS and Subscription Based Subscription/Cloud Based INR 825 Cr INR 850 Cr (Including order backlog of GeM project) (Including GeM p
Slide 25: Currency wise Revenue Mix – Q4 FY20
Currency wise Revenue Mix – Q4 FY20 AUD EUR OTHERS 2% 2% 8% 14% USD INR 49% 4% CAD 21% 23 GBP
Slide 26: Revenues across Geographies
Revenues across Geographies ADV. MARKETS ADV. MARKETS Rs 800.60 Cr Rs 953.93 Cr (59%) (65%) Rs 371.51Cr Rs 337.74Cr (28%) (23%) REST OF REST OF THE WORLD Rs 178.76 Cr THE WORLD Rs 167.06 Cr (13%) (11%) FY20 INDIA FY19 INDIA Adv. Markets: Americas, Europe, Australia, New Zealand, Singapore, Japan 24
Slide 27: Financial Results for the Fourth Quarter Ending – March 31, 2020
Financial Results for the Fourth Quarter Ending – March 31, 2020 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 YEAR ENDED Particulars March 31, 2020 December 31, 2019 March 31, 2
Slide 28: Board Announcement
Board Announcement Board has approved inducting Abhay Gupte as Additional Director on the Board. He will be an independent director Abhay Gupte, Managing Director and CEO, Manipal Technologies Limited (MTL), is responsible for its businesses & subsidiaries in India, Germany, Kenya and Nigeria. He ha
Slide 29: Digital Deals and Implementations
Digital Deals and Implementations 3 Large Deals in Q4 FY 20 FY 20 Q4 FY 20 • Intellect has won a landmark, multi-million- dollar deal with one of the top 10 banks. The Bank has been using iGTB’s Liquidity Management Solution (LMS) for over 10 years 27 7 and has now chosen to upgrade its client liqui
Slide 30: Healthy Pipeline
Healthy Pipeline Active Pursuits – Q4 FY20 • The current funnel of Intellect is around INR 3840 Cr ($ 512 mn) out of which INR 2820 Cr ( $ 376 mn) is accounted by 120 Opportunities • Average deal size in Q4 FY20 stands at INR 15 Cr ($ 2 mn) against INR 14 Cr ($ 1.9 mn) in Q4 FY19 Destiny Deals Desti
Slide 31: Active Pursuits
Active Pursuits Q3 FY20 Q4 FY20 High value active pursuits Active Won Lost Added Active Remarks Pursuits Pursuits 41 1 deal Won 1 deal Lost >50 Cr 8 1 1 1 7 6 deals from Q3 FY20 + • 7 pursuits are of value more than 1 new deal added INR 50 Cr each 2 deals Won 30 Cr – • 12 pursuits are of value betwe
Slide 32: Management Observations
Management Observations “ Arun Jain, Chairman and Managing Director, Intellect Design Arena Limited said, “2019-20 year was a year of change. Change in adoption of Cloud technology, Change in moving from large Capital intensive technology transformation to Subscription based Project funding model an
Slide 33: Copyright notice
© 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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