Datamatics Global Services Limited · NSE:DATAMATICS

Datamatics Global Services — Q3 FY2021 Earnings Presentation

27 slides from Datamatics Global Services's earnings presentation, Jan 28, 2021

  1. Slide 1: Investor Presentation

    Investor Presentation 28th January 2021 Datamatics Global Services Limited BSE: 532528 | NSE: DATAMATICS | ISIN: INE365B01017 | CIN: L72200MH1987PLC045205 © Copyright 2019 Datamatics Global Services Limited and its subsidiaries (hereinafter jointly referred as Datamatics). All rights reserved.

  2. Slide 2: Agenda

    Agenda Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Recognition Financial 03. Overview © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 2

  3. Slide 3: Agenda

    Agenda Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Recognition Financial 03. Overview © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 3

  4. Slide 4: Executive Summary

    Executive Summary Nature of Business 9MFY21 Highlights  Global Technology, BPM and Digital  Operating Revenue ₹ 8,657.6 Mn; Solutions company that builds Business Process IT Services & Engineering down 3.0% YoY Management Cloud Services intelligent solutions for data-driven  EBITDA at ₹ 1,003.9 M

  5. Slide 5: Key Milestones

    Key Milestones 2016 Opened new delivery centre in USA 2003 Acquired Saztec USA Acquired TechJini, boutique mobile & 2017 Acquired Corpay for Accounts web technology provider India 2003 Payable solutions USA Acquired RJGlobus Solutions, voice & 1975 Datamatics incorporated 2018 2003 BUPA on boarded a

  6. Slide 6: Line of Business

    Line of Business Business Process Artificial Information Management 46% Intelligence 54% Technology (IT) (BPM) (AI) Smart Systems Smart Processes Products Products © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 6

  7. Slide 7: IT Solutions

    IT Solutions Offerings Metrics  Application Management Services  Digital Solutions Products  Robotic Process Automation (RPA) 54%  Enterprise Mobility Revenue Contribution  Cloud Solutions  Automated Fare Collection (AFC) Opportunity 7.5% EBITDA Margin  Worldwide IT spending is expected to to

  8. Slide 8: Business Process Management (BPM)

    Business Process Management (BPM) Offerings Metrics  Financial Transaction Processing Products  Content Management & Publishing  Customer Management 46% Revenue Contribution Opportunity 16.4% EBITDA Margin  The global IT outsourcing market was valued at US$ 333.7 bn in 2019 and it is projected t

  9. Slide 9: Robotics Process Automation (RPA)

    Robotics Process Automation (RPA) Offerings Client Metrics  Provides RPA implementation, licensing, and support services for a range of repetitive and rule- based processes without any manual intervention 4000+ Active TruBots  TruBot, a vertical-agnostic product is an off-the-shelf software bot th

  10. Slide 10: Agenda

    Agenda Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Recognition Financial 03. Overview © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 10

  11. Slide 11: Strategy & Outlook for the Future

    Strategy & Outlook for the Future Account Penetration & Focus on larger deals Strengthen Partners & Reseller Channel Invest in Automation to improve productivity Digital Solutions Focus on Products – Robotics & Advanced Analytics AFC opportunity – Focus on India and US geographies © Copyright 2020 D

  12. Slide 12: Investment Rationale: Business

    Investment Rationale: Business Delivers comprehensive suite of innovative services and solutions to customers including Fortune 500 companies for managing their end-to-end Application Life Cycle and Business Critical Processes Strong brand reputation in the market and a stable foothold in the IT & I

  13. Slide 13: Agenda

    Agenda Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Recognition Financial 03. Overview © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 13

  14. Slide 14: Q3FY21 – Key Financial Highlights

    Q3FY21 – Key Financial Highlights  Revenue at ₹ 3,030.6 million; up 6.1% q-o-q and flat y-o-y; growth was driven by BPM business  EBITDA at ₹ 389.0 million; up 18.1% q-o-q and up 48.1% y-o-y  EBITDA margin was at 12.8%; up 130 bps q-o-q and up 425 bps y-o-y. Sustained double digit EBITDA margin a

  15. Slide 15: 9MFY21 – Key Financial Highlights

    9MFY21 – Key Financial Highlights  Revenue at ₹ 8,657.6 million; down 3.0% y-o-y; growth was mainly impacted due to Covid-19 pandemic in the initial quarters of the fiscal year  EBITDA at ₹ 1,003.9 million; up 5.3% y-o-y  EBITDA margin was at 11.6%; up 92 bps y-o-y  PAT (after non-controlling in

  16. Slide 16: Q3 & 9MFY21 – Consolidated Profit and Loss

    Q3 & 9MFY21 – Consolidated Profit and Loss Particulars (₹ in Mn) Q3 FY21 Q3 FY20 YoY % Q2 FY21 QoQ % 9M FY21 9M FY20 YoY % Revenue from Operations 3,030.6 3,060.5 -1.0% 2,856.2 6.1% 8,657.6 8,929.4 -3.0% Purchase of Products and Licenses 9.7 32.2 54.9 93.8 91.3 Employee Benefits Expenses 2,029.9 1,9

  17. Slide 17: Agenda

    Agenda Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Recognition Financial 03. Overview © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 17

  18. Slide 18: Q3 FY21 – Business Updates

    Q3 FY21 – Business Updates • Added 10 new customers • Datamatics simplifies document processing with a new AI-enabled TruCap+ Intelligent Document Processing (IDP) solution • Divested its stake in Cignex • Helped UTI Mutual Fund to set-up a paperless Digital Workplace in record time amid pandemic •

  19. Slide 19: Q3 FY21 – Key Result Highlights

    Q3 FY21 – Key Result Highlights Operating Revenues EBITDA & EBITDA Margin % 12.8% 11.5% (In ₹ Mn) (In ₹ Mn) 3,060.5 3,030.6 8.6% 389.0 2,856.2 6.1% 329.3 18.1% QoQ 262.6 QoQ 1.0% 48.1% Q3 FY20 Q2 FY21 Q3 FY21 YoY Q3 FY20 Q2 FY21 Q3 FY21 YoY PBT & PBT Margin % PAT before NCI & PAT before NCI Margin %

  20. Slide 20: Q3 FY21 – Revenue Segment Analysis

    Q3 FY21 – Revenue Segment Analysis IT Services Revenues – Q3 FY21 BPM Revenues – Q3 FY21 1,816.8 1,448.7 1,313.3 1,542.9 1,581.8 1,243.7 2.5% 10.3% (In ₹ Mn) (In ₹ Mn) QoQ QoQ 12.9% 16.5% YoY YoY Q3 FY20 Q2 FY21 Q3 FY21 Q3 FY20 Q2 FY21 Q3 FY21 © Copyright 2020 Datamatics Global Services Limited and

  21. Slide 21: Healthy Balance Sheet Position

    Healthy Balance Sheet Position Leverage Analysis Days Sales Outstanding (DSO) 82 83 0.13 79 0.11 0.05 68 0.00 7,700 Number of days 7,163 6,793 (In ₹ Mn) 5,827 658 965 359 0 FY18 FY19 FY20 9MFY21 FY18 FY19 FY20 9MFY21 Debt Equity D/E © Copyright 2020 Datamatics Global Services Limited and its subsidi

  22. Slide 22: Q3 FY21 – Revenue Segment Analysis

    Q3 FY21 – Revenue Segment Analysis Revenue by Industry Revenue by Geography 5% 5% 5% 3% 5% 4% 18% 21% 26% 19% 21% 6% 20% 6% 5% 5% 5% 5% 14% 11% 12% 20% 20% 26% 24% 17% 19% 59% 58% 59% 27% 27% 23% Q3 FY20 Q2 FY21 Q3 FY21 Q3 FY20 Q2 FY21 Q3 FY21 BFSI Technology & Consulting US UK India Europe ROW Educ

  23. Slide 23: 9M FY21 – Client Concentration

    9M FY21 – Client Concentration Client concentration maintained at a comfortable level 51% 47% 38% 34% 27% 23% 9MFY20 9MFY21 9MFY20 9MFY21 9MFY20 9MFY21 Top 5 Top 10 Top 20 © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 23

  24. Slide 24: Agenda

    Agenda Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Recognition Financial 03. Overview © Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved 24

  25. Slide 25: Key Analyst Coverage

    Key Analyst Coverage Datamatics recognized in the Datamatics recognized in the Gartner Toolkit: Vendor Datamatics recognized in the Omdia Gartner Peer Insights ‘Voice of the Identification for AI and Data and Universe report on Selecting a Customer’: Robotic Process Analytics Service Providers Robot

  26. Slide 26: Recognition: Awards

    Recognition: Awards Datamatics featured in the Datamatics recognized at UN TruBot won Gold Stevie Award TruCap+ won People’s Choice IAOP 2020 and 2019 Global Global Compact Network India 2020 for ‘Sales & Customer Stevie Award 2020 for Outsourcing 100 List of the Innovative Practices Award Service’

  27. Slide 27: For further queries

    For further queries DISCLAIMER: This presentation and the following discussion may contain “forward looking statements” by Datamatics Global Services (“DGS” or the Company) that are not Mr. Sandeep Mantri historical in nature. These forward looking statements, which may include Chief Financial Offic

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