Updater Services Limited · NSE:UDS
Updater Services — Q1 FY2025 Earnings Presentation
37 slides from Updater Services's earnings presentation, Aug 5, 2024
Slide 1: Redefining Business Services
Redefining Business Services 05.08.2024 To: To: BSE Limited (BSE) National Stock Exchange of India Limited (NSE) Corporate Relationship Department Listing Department Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, 25th Floor, Dalal Street, G Block, Bandra Kurla Complex, Bandra (E
Slide 2: Updater Services Limited Investor Presentation
Updater Services Limited Leading Integrated Business Service Platform Investor Presentation August 2024
Slide 3: Safe Harbor
Safe Harbor This presentation has been prepared by and is the sole responsibility of Updater Services Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or i
Slide 4: Contents
Contents 1 Q1 FY25 Financial Highlights 2 Segment Highlights 3 Why UDS 4 Key Growth Strategies 5 Industry Outlook 6 Historical Financials
Slide 5: Q1 FY25 Financial Highlights
Q1 FY25 Financial Highlights
Slide 6: Q1 FY25 Key Performance Highlights
Q1 FY25 Key Performance Highlights Strong Operating Performance and Key Highlights during the Quarter UDS, an Essential Partner of every enterprise delivering exceptional business services Exceptional double digit revenue growth riding on the BSS segment growth of 34% with a robust ROCE of 24%
Slide 7: Q1 FY25 Key Financial Highlights
Q1 FY25 Key Financial Highlights Total Revenue Revenue – IFM Business Revenue – BSS Business ₹ 6,587 Mn. ₹ 4,246 Mn. ₹ 2,340 Mn. 14% 5% 34% EBITDA Profit After Tax (PAT) ₹ 474 Mn. ₹ 256 Mn. 33% 107% Head Count - IFM Head Count - BSS New LOGO’s Added in Q1 FY25 51,738 14,360 IFM – 29 7% 30% BSS – 15
Slide 8: Q1 FY25 Financial Highlights
Q1 FY25 Financial Highlights Total Revenue Revenue (IFM) Revenue (BSS) EBITDA (₹ Mn.) (₹ Mn.)^ (₹ Mn.)^ (₹ Mn.) 69.9% 64.5% 30.1% 35.5% 6.1% 7.2% +14% 6,587 +5% +34% +33% 5,792 4,050 4,246 2,340 474 1,742 356 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Profit After Tax (PAT) Cash PAT RoC
Slide 9: Segment Wise Highlights - IFM
Segment Wise Highlights - IFM Segment Wise Split Sector Wise Revenue Contribution Customer Concentration 3.0% 7.0% 6.0% 7.0% 2.0% 8.0% 2.0% 31.0% 36.0% 12.6% 32.0% 16.0% 88.0% 16.7% 33.0% Industrial Health Care Top 10 Next 40 Others IFMS F&B Real Estate Retail/FMCG Hospitality Others BFSI IT/ITES Ot
Slide 10: Segment Wise Highlights - BSS
Segment Wise Highlights - BSS Segment Wise Split Sector Wise Revenue Contribution Customer Concentration 5.0% 5.0% 10.0% 10.0% 23.0% 6.0% 12.0% 8.0% 8.0% 59.0% 65.0% 18.0% 71.0% Sales Enablement Services IT/ITES Real Estate Top 10 Next 40 Others Audit & Assurances RETAIL Others Employee Background V
Slide 11: Q1 FY25 Financial Highlights
Q1 FY25 Financial Highlights Particulars (₹ Mn.) Q1 FY25 Q1 FY24 Y-o-Y Q4 FY24 Q-o-Q Total revenue from operations 6,586.5 5,791.6 14% 6,373.3 3% Cost of services and other raw material 208.2 243.8 229.7 Employee benefits expense (incl. ESOP) 4,869.5 4,023.9 4618.2 Impairment losses on financial ins
Slide 12: Why UDS...
Redefining Business Services Why UDS...
Slide 13: About Us
About Us Leading Integrated Business Services Platform - Unique mix of businesses transforming from only IFM Awards and Certifications to integrated platform with BSS Transformed into an integrated business services platform offering IFM services and BSS led through strategic acquisitions and Organi
Slide 14: Journey so far
Journey so far IFM & Others BSS Feminine Hygiene BPO-tele calling Sales FY2024 Employee Enablement FY2023 Background Soft Services Check , Audit & Acquired Took the Airport Assurance FY2022 company into majority stake in Ground Athena BPO IPO and raised Staffing Handling FY2020 Entered Sales (Sales
Slide 15: Integrated Facility Management (IFM) & Other Services
Integrated Facility Management (IFM) & Other Services Soft Services Production Support Engineering Services Institutional Catering Services Mechanical, electrical, and plumbing Housekeeping and cleaning Material handling, material Catering and food (MEP) services. Also referred to as services, disin
Slide 16: Business Support Services (BSS)
Business Support Services (BSS) Sales Enablement Services Audit & Assurances Employee Background Serving global customers across multiple industries including Services such as supply chain audit including Verification Check Services information technology / information technology enabled services, w
Slide 17: Leading Integrated Business Services Platform
Leading Integrated Business Services Platform Integrated Updater Facility Business Support Services Limited Management Services (BSS) (IFM) & Other Services IFM | Integrated Facility 2 BSS | Audit & Assurance BSS | Sales Enablement 1 1 Management (Matrix Business Services) (Denave & Athena BPO) BSS
Slide 18: PAN INDIA presence with large and efficient workforce
PAN INDIA presence with large and efficient workforce Customer Locations Widespread network with 139 points of ...gives the company competitive advantage 5,102 presence… over its peers in several aspects (excluding staffing locations) Preferred Ability to provide services for companies Service UDS S
Slide 19: Track record of successful acquisitions and seamless integration
Track record of successful acquisitions and seamless integration of high margin businesses… Selective Strategic acquisitions as means to expand the operations in value added business support services space Focus has been to acquire companies and businesses with offerings that are complementary and
Slide 20: Matrix
Matrix Cumulative Payout Matrix is a market leader in providing assurance services to employers, such as residence checks, education and documentation verifications, character ₹ 553.7 Mn. reference verifications, and ID proofs, among other things. Matrix is a strong partner for HR functions, allowin
Slide 21: Denave
Denave Cumulative Payout Denave is the pioneer of B2B sales enablement strategy. Today, the Company works closely with industry- ₹ 1,269.7 Mn. leading clients to implement a transformational approach aimed at enabling enterprises to grow sustainably, build a competitive edge, and drive positive impa
Slide 22: Athena
Athena Cumulative Payout One of the oldest domestic BPOs in India and has grown rapidly over last 16 years with the current footprint ₹ 1,234.2 Mn. spanning 2 cities – Mumbai and Bangalore with 3 operational centres. The company has over 3,000 billable seats in these locations and serves a galaxy of
Slide 23: Experienced Board
Experienced Board… Strong standards of corporate governance with experienced directors on board One of the founding Directors of the Company B.Com from Sydenham College of Commerce and Economics, University of Bombay, and Diploma in Systems Management 30 years of experience in the service sect
Slide 24: Why UDS
Why UDS… Unique Integrated Business Support Highly experienced IFM Services Platform with widest offerings in management team with + the Industry support from PE investors BSS Long standing presence in India Technology at the forefront of has helped us gain an our current and future understanding of
Slide 25: Key Growth Strategies
Key Growth Strategies Retain, strengthen Introduce new Continue to Grow market share Pursue Inorganic and grow products and improve operating in key segments Growth customer base services margins Focus on deepening Existing customer Catering to existing Changing business Strategic acquisit
Slide 26: Industry Outlook
Redefining Business Services Industry Outlook
Slide 27: Outsourced IFM Market in India
Outsourced IFM Market in India | Growth momentum to aid UDS' leading position ... IFM: Well diversified market in terms of end customers… …a large portion of which is currently being served in-house… ResidentialEducation Others Overall IFM Market 5% 4% 2% Healthcare Industrial Outsourced 9% 39.3% FY
Slide 28: Move towards organized integrated players
... further aided by the move towards organized integrated players Increase in Share of Outsourced IFM Preference for Organized/Integrated Consolidation on the rise services Players IFM: IN-HOUSE VS OUTSOURCED SERVICES The market is now shifting from single IFM Un-Organized vs Organized service cont
Slide 29: BSS Industry | Emerging Segment with increasing outsourcing potential
BSS Industry | Emerging Segment with increasing outsourcing potential Driven by growth in these verticals the Key verticals comprising the ~ ₹ 7,115 Cr BSS Segment and their BSS segment is expected to grow at pie share ~15.3% CAGR during FY23-FY28P Sales Enablement Airport Ground BSS Market Size Bus
Slide 30: UDS well placed with wide service offerings
UDS well placed with wide service offerings, onboarded through acquisitions Sales Enablement Employee Background Mailroom and Warehouse Business Process Airport Ground Services Verification Management Audits & Assurance Handling Growth Trend (₹ Crs.) Growth Trend (₹ Crs.) Growth Trend (₹ Crs.) Growt
Slide 31: Integrated Business Services Platform with wide-range of services offered
Integrated Business Services Platform with wide-range of services offered Retail/Trade/Channel Audits & Assurances Waste Management Production Support Emergency Services Mail Room Services Background Checks Feminine Hygiene Sales Enablement Food & Catering Capital Projects Airport Ground Hard Servic
Slide 32: Historical Financials
uds Redefining Business Services Historical Financials
Slide 33: Demonstrated Record of Robust Financial Performance
Demonstrated Record of Robust Financial Performance Total Revenue Revenue (IFM) Revenue (BSS) EBITDA (₹ Mn.) (₹ Mn.)^ (₹ Mn.)^ (₹ Mn.) 90% 80% 72% 67% % of 10% 20% 28% 34% 6.0% 6.2% 5.0% 6.4% Sales +27% +14% 24,680 +89% 21,121 16,658 8,022 +30% 15,288 1,578 14,979 11,220 12,183 6,089 12,164 1,058 3,
Slide 34: Historical Consolidated Profit & Loss Statement
Historical Consolidated Profit & Loss Statement Particulars (₹ Mn.) FY24 FY23 FY22 FY21 Total Revenue from Operations 24,679.7 21,120.9 14,979.4 12,163.5 Cost of Services and Other RM 1,019.6 3,469.3 393.5 316.1 Employee benefits expense (incl. ESOP) 18,156.5 13,840.6 11,387.8 9,816.6 Impairment los
Slide 35: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet EQUITY & LIABILITIES (₹ Mn.) Mar-24 Mar-23 Mar-22 Mar-21 ASSETS (₹ Mn.) Mar-24 Mar-23 Mar-22 Mar-21 Equity Share Capital 669.5 529.5 528.2 528.2 Property, plant and equipment 602.7 607.9 332.0 135.1 Other Equity 7,734.2 3,279.4 2,876.1 2,324.5 Capital Work in Pr
Slide 36: Historical Consolidated Cash Flow Statement
Historical Consolidated Cash Flow Statement Cash Flow Statement (₹ Mn.) FY24 FY23 FY22 FY21 Net Profit Before Tax 845.8 541.9 709.4 544.3 Adjustments for: Non - Cash Items / Other Investment or 813.8 908.0 385.3 236.0 Financial Items Operating profit before working capital changes 1,659.6 1,449.9 1,
Slide 37: THANK YOU
THANK YOU Company: Updater Services Limited CIN: U74140TN2003PLC051955 Ms. Radha Ramanujan – CFO radha.ramanujan@uds.in Website : www.uds.in Investor Relations: Strategic Growth Advisors Pvt. Ltd. CIN: U74140MH2010PTC204285 Mr. Deven Dhruva / Mr. Varun Shivram deven.dhruva@sgapl.net / varun.shivram@