Datamatics Global Services Limited · NSE:DATAMATICS
Datamatics Global Services — Investor Day (June 2018)
39 slides from Datamatics Global Services's investor day presentation, Jun 12, 2018
Slide 1: Datamatics Global Services Limited Analyst Day
DATAMATICS GLOBAL SERVICES LIMITED ANALYST DAY JUNE 12, 2018
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: Discussion Summary
Company Overview DISCUSSION Financial Overview SUMMARY Business Strategy & Outlook
Slide 4: Company Overview
DATAMATICS* Data to Intelligence » COMPANY OVERVIEW
Slide 5: Our Brief Profile
OUR BRIEF PROFILE We build intelligent solutions for data-driven businesses to enhance their productivity and customer experience Delivery Centres Customers Employees Across 4 450+ 10,000+ Continents EBITDA PAT Revenue Ratios FY 2018 INR 82 Cr INR 71.5 Cr INR 910.3 Cr ROCE 13.7% INR 820 Mn INR 715 M
Slide 6: Key Milestones
KEY MILESTONES Acquired Saztec (USA,2003) Acquired Corpay for Accounts Payable Opened new delivery centre in USA solutions (USA, 2003) Acquired TechJini, boutique mobile & Datamatics incorporated (1975) web technology provider (India, 2017) BUPA on boarded as customer (2003) India’s 1s
Slide 7: Our Portfolio
OUR PORTFOLIO Business Process Management IT Services • Finance & Accounting • Publishing • Cloud Services • Web Design & Development • Banking Process Management • Retail /e-Commerce • Application Management • Robotic Test Automation • Insurance Process Management • BPaaS Services • Enterprise Cont
Slide 8: Robotics - Overview
We ROBOTICS - OVERVIEW DATAMATICS' Data to Intelligence ACCOUNTING DOCUMENTS =} SOCIAL /, CITRIX ENTERPRISE SYSTEMS WEBSITE
Slide 9: TruBot – Robotic Process Automation Solution
•zv A.I. TruBot – ROBOTIC PROCESS AUTOMATION SOLUTION A.I. 2300+ An active customer active TruBots base of 75 globally Over 23 million documents 70% clients with over processed $5 billion revenue through OCR Catering to customers across Banking, Healthcare, Insurance, Manufacturing and Logistics
Slide 10: Debut in Everest Group's PEAK Matrix for RPA 2018
•zv A.I. DEBUT IN EVEREST GROUP’S PEAK MATRIX FOR RPA 2018 Everest Group PEAK Matrix – RPA Vendor Landscape 2018
Slide 11: Robotic Process Automation Market Size
•zv A.I. ROBOTIC PROCESS AUTOMATION MARKET SIZE YoY Growth
Slide 12: Business Process Management
•zv A.I. BUSINESS PROCESS MANAGEMENT CLIENT ENGAGEMENT BENEFITS/IMPACT • Accounts opened per day grew from 3,000 to 15,000 Deployed TruBot for new account with the same workforce A large private bank in opening process • Enhanced productivity by 500% India • Reduced processing time by 70% from 12 mi
Slide 13: IT Services
•zv A.I. IT SERVICES CLIENT ENGAGEMENT BENEFITS/IMPACT • More than 96% transactions and booking requests are from the mobile app Developed Android, iOS and A leading Indian online cab aggregator Windows mobile apps for Riders and • Mobile app ride hailing increased by 100% Q-o-Q Drivers • USD 2.1 to
Slide 14: Automated Fare Collection (AFC) Solution
•zv A.I. AUTOMATED FARE COLLECTION (AFC) SOLUTION • Market Scenario • Global AFC market is growing at 13.2% and expected to reach $11.95 Bn by 2021. • Growing demand in emerging economies - 25 metro rail projects in India over the next 5 years • Datamatics has delivered over 20 global projects for c
Slide 15: LMRC Case Study
•zv A.I. Delivered an end-to-end Automatic Fare Collection (AFC) system for Phase 1 of the Lucknow Metro Rail Project Impact: LMRC Case Study • State-of-the-art contact less smart card based ticketing solution • Supports multi-channel, multi-modal transit interface • Scalable and can handle 10x capa
Slide 16: Big Data & Analytics
•zv A.I. BIG DATA & ANALYTICS CLIENT ENGAGEMENT BENEFITS/IMPACT • Average collection reduced from 90+ from due Reduced collection outstanding and strengthened date to <5 days after due date India’s leading rural cash flow through stronger integrated dashboards • Increased productivity from 3 person
Slide 17: Snapshot: Artificial Intelligence
•zv A.I. SNAPSHOT: ARTIFICIAL INTELLIGENCE GENETIC ALGORITHMS MACHINE LEARNING PREDICTIVE ANALYTICS INFORMATION EXTRACTION NATURAL LANGUAGE TRANSLATION PROCESSING (NLP) CLASSIFICATION & CLUSTERING SPEECH TO TEXT SPEECH ARTIFICIAL TEXT TO SPEECH INTELLIGENCE EXPERT SYSTEM PLANNING, SCHEDULING & OPTIM
Slide 18: TruAI - Artificial Intelligence Platform
•zv A.I. TruAI - ARTIFICIAL INTELLIGENCE PLATFORM News Transactions Artificial Intelligence Platform Insights Email Social Media TruAI TruAI Mosaic Documents NLP (Text (Pattern •Human-Data .pdf, .docx, Analysis) Detection) •Interface .xlsx, .txt SMS Audio Video
Slide 19: Artificial Intelligence: NLP
•zv A.I. ARTIFICIAL INTELLIGENCE: NLP •19
Slide 20: Use Case: Extract Intelligence in Multilingual Environment
•zv A.I. USE CASE: Extract intelligence in Multilingual Environment Original Source Named Entity Recognition (NER) TruAI Context Analysis Summary Social Lookup Prof. Dr. Hamdy El-Maaz
Slide 21: Artificial Intelligence
•zv A.I. ARTIFICIAL INTELLIGENCE CLIENT ENGAGEMENT BENEFITS/IMPACT • Processed over 30 million documents within 42 days Deployed TruBot Neuro to digitize, • Enhanced productivity and decreased search time from 2 A leading Bank in summarize and classify documents for days to few mins USA easy archiva
Slide 22: DataLabs
DATALABS RESEARCH AREAS ARTIFICIAL INTELLIGENCE AUGMENTED & & COGNITIVE CAPTURE VIRTUAL REALITY ROBOTICS PROCESS INTERNET OF THINGS AUTOMATION
Slide 23: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM DR. LALIT KANODIA RAHUL KANODIA SANDEEP MANTRI BRAJESH UGRA NAVIN GUPTA Chairman Vice-Chairman VP & Chief Financial President – Global Head - EVP & Global Head & CEO Officer - Sales BPO Services SANJEEV SUBHEDAR SACHIN RANE SANJEET BANERJI SHASHI BHARGAVA SANDEEP ARORA EV
Slide 24: Certifications
CERTIFICATIONS A1 Rating Certified SSAE 16 SOC 1 & Certified Certified SOC II with HiTRUST (S&P) SEI CMMI Level 4, ISO 27001-2013 ISO 9001-2008 Financial Stability V 1.3 HIPAA Compilant
Slide 25: Recent Awards & Recognitions
RECENT AWARDS & RECOGNITIONS CIO Choice 2018 – 7th Global Economic NASSCOM Analytics Artificial Intelligence, Summit 2018 – Challenge 2018 – Business Intelligence Services Category Fraud Detection & Doc. Mgmt. Solution GT-CII India Meets ICICI Prudential Asian Banker Britain Tracker 2017 Annual TATV
Slide 26: Financial Overview
DATAMATICS* Data to Intelligence » FINANCIAL OVERVIEW
Slide 27: Steady Growth Over Last 7 Years
STEADY GROWTH OVER LAST 7 YEARS In Rs Mn Revenues EBITDA & EBITDA Margin % PAT & PAT Margin % # CAGR 12.8% CAGR 12.02% CAGR 16.74% 9,103 12.3% 9.4% 8.7% 10.3% 9.0% 9.7% 9.0% 8,280 8,162 8,524 6.4% 5.7% 7.9% 5.9% 5.4% 7.5% 7.9% 7,338 903 851 830 820 715 5,500 733 640 582 4,419 485 478 444 415 283 315
Slide 28: Healthy Balance Sheet Position
HEALTHY BALANCE SHEET POSITION In Rs Mn Leverage Analysis Return On Equity Return On Capital Employed 13.7% 12.5% 12.6% 12.9% 11.2% 10.0% 19.3% 9.9% 11.3% 5,567 5,827 4,673 901 550 658 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 Debt Equity D/E Figures as per IndAS; Return on Equity = PAT/Average N
Slide 29: Cash Flow
CASH FLOW In Rs Mn Working Capital Operating Cash Flow 82 67 91.4% 88.3% 66 67.2% 733 670 26 28 551 23 FY16 FY17 FY18 FY16 FY17 FY18 Receivables Days Payables Days OCF OCF / EBITDA %
Slide 30: Customers
DATAMATICS* Data to Intelligence » CUSTOMERS
Slide 31: Revenue Contribution
REVENUE CONTRIBUTION BY GEOGRAPHY BY INDUSTRY RoW 5% India BFSI Publishing 17% 28% 23% Manufacturin g Europe 10% 16% USA 62% IO 6% Others 28% Hospitality 5%
Slide 32: Decreasing Dependency on Top 20 Customers
DECREASING DEPENDENCY ON TOP 20 CUSTOMERS 60% 53% 49% 48% 50% 40% 40% 35% 35% 30% 26% 24% 23% 20% 10% 0% FY16 FY17 FY18 Top 5 Top 10 Top 20
Slide 33: Revenue Contribution
REVENUE CONTRIBUTION LINE OF SERVICE DIGITAL VS NON DIGITAL Engineering Digital 8% Revenues 10% IT Services 46% BPM 46% Non-digital Revenues 90%
Slide 34: Peer Comparison
PEER COMPARISON Key Ratios Peers Datamatics Revenue Size < 1,000 Cr. 910 Cr. Profit after Tax / Total Revenue % 7.2% 7.9% EBIDTA / Revenue from operation % 10.6% 9.0% Revenue Growth Ratio % 9.4% 6.8% Debt / Equity Ratio Times 0.23 0.11 Days Sales Outstanding Days 99.00 82.00 ROE % 11.9% 12.6% ROCE %
Slide 35: FY18 & Q4 Results
FY18 & Q4 RESULTS FY18 YoY% Revenue & % Growth EBITDA & EBITDA Margin % PAT & PAT Margin % # 9,103 8,524 6.8% 4.4% FY17 FY18 Q4 YoY% Revenue & % Growth EBITDA & EBITDA Margin % PAT & PAT Margin % # 2,213 2,348 9.8% 5.6% 6.1% 231 123 0.5% Q4 FY17 Q4 FY18 Q4 FY17 Q4 FY18 INR Mn •# PAT Before Minority
Slide 36: Strategy Outlook
DATAMATICS* Data to Intelligence » STRATEGY OUTLOOK
Slide 37: SWOT Analysis
SWOT ANALYSIS • Boutique firm with comprehensive offerings in IT, BPM & Digital • Brand visibility & perception • Customers across multiple industries • Pricing & margin pressures • Global delivery centres • Account penetration • BPaaS based outsourcing services • Large deals pipeline • Established
Slide 38: Key Focus Areas
KEY FOCUS AREAS 1 YEAR 2 YEARS & MORE Account Penetration Invest in Automation AFC opportunity – Strategic & Focus on larger to improve Focus on Indian deals productivity Metro Rail Projects Acquisitions Focus on Products – Artificial Establish Partners & Digital Robotics & Advance Reseller Channel
Slide 39: For Further Queries
FOR FURTHER QUERIES Mr. Sandeep Mantri Mr. Arun Prakash / Mr. Nilesh Dalvi Chief Financial Officer IR Consultant Email ID: investorrelations@datamatics.com Email ID: arun.prakash@dickensonir.com nilesh.dalvi@dickensonir.com Contact: +91 99209 93892 / 98192 89131
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