This is with reference to our intimation dated May 18, 2022 regarding Investors/ Analysts call of R Systems International Limited (���the Company���) on Friday, May 20, 2022.In this regard, as per Reg...
R SYSTEMS INTERNATIONAL LIMITED Corporate Identity Number : L74899DL1993PLC053579 [CMMI Level 5, PCMM Level 5, ISO 9001:2015 & ISO 27001:2013 Company] C-40, Sector-59, NOIDA, Distt. Gautam Budh Nagar, U.P., India – 201 307
Phones: +91-120-4303500 Fax: +91-120-4082699
Email : rsil@rsystems.com www.rsystems.com
Regd. Off.: GF-1-A, 6, Devika Tower, Nehru Place, New Delhi- 110019
REF: SECT/05/2022/14
DATE: MAY 20, 2022
To, The Managing Director National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra – East, Mumbai – 400 051
To, The General Manager BSE Limited Department of Corporate Services, Rotunda Building, 1st Floor, Mumbai Samachar Marg, Fort, Mumbai - 400 001
NSE Symbol – RSYSTEMS
BSE Scrip Code - 532735
Dear Sir/ Madam,
SUB: SUBMISSION OF PRESENTATION MADE TO ANALYSTS/ INVESTORS
This is with reference to our intimation dated May 18, 2022 regarding Investors/ Analysts call of R Systems International Limited (“the Company”) on Friday, May 20, 2022.
In this regard, as per Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed presentation made to Analysts/ Investors on May 20, 2022 on the financial results for the quarter ended on March 31, 2022.
The audio recording of the Investors/ Analysts call and presentation made to Analysts/ Investors are available on the Company’s website at the following link:
https://www.rsystems.com/investors-info/quarterly-results/
This is for your information and records.
Thanking you,
Yours faithfully,
Thanking You, For R Systems International Limited
Bhasker Dubey (Company Secretary & Compliance Officer)
Analytical Review Q1 2022 Results Next-Gen Digital Evolution
© 2022 R Systems All rights reserved.
Disclaimer “Investors are cautioned that this presentation contains forward looking statements that involve risks and uncertainties. The Company undertakes no obligation publicly to update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Actual results, performance, or achievements could differ from those expressed or implied in such forward- looking statements.”
2
Key Highlights Q1 2022
12.14
12.46
13.72
Revenue
₹ 343.11 Cr. (US$ 45.69 Mn)
QoQ
YoY
+ve 4.40%
+ve 38.54%
EBITDA
₹ 41.66 Cr. (US$ 5.55 Mn)
Net Profit
₹ 29.69 Cr. (US$ 3.95 Mn)
Earnings Per Share
₹ 2.51
Key Wins
10
Share Holder Funds
₹ 492.61 Cr. (US$ 64.99 Mn)
EBITDA Revenue %
Net Cash Balance
₹ 273.43 Cr. (US$ 36.08 Mn)
Q1 2022
Q1 2021
Q4 2021
3
Key Highlights (Continues…)
Revenue growth backed by strong demand environment for digital and technology services
Q1-22 were margins impacted by salary hike and attrition challenges
Utilization was modest to overcome the hiring and attrition challenges
On-boarded 80+ technical associates during Q1 2022 to support strong sales funnel
including
Serving 46 million dollar plus customers 7 accounts contributing dollar three million plus revenues on run rate basis
Improved pricing by rate hike and higher rack rate to in enhance coming quarters.
margins
Financial Performance –Contribution Analysis – Q1 2022
Q1 2022
Q1 2021
Q4 2021
Particulars
Revenues
Cost of revenues
Gross margin
SG&A Expenses
EBITDA
Depreciation and amortization
EBIT
Interest expense
Other income (net)
Income before income tax
Income tax provision
Net earnings
₹ in Mn
3,431.09
2,293.56
1,137.53
33.15%
720.98
21.01%
416.55
12.14%
82.38
334.17
(11.17)
51.41
374.41
77.51
296.90
US$ in Mn
45.69
30.54
15.15
9.60
5.55
1.10
4.45
(0.15)
0.68
4.98
1.03
3.95
₹ in Mn
2,476.53
1,618.16
858.37
34.66%
549.80
22.20%
308.57
12.46%
62.69
245.88
(12.65)
51.29
284.52
35.68
248.84
US$ in Mn
33.99
22.21
11.78
7.55
4.23
0.86
3.37
(0.17)
0.70
3.90
0.49
3.41
₹ in Mn
3,286.46
2,143.49
1,142.97
34.78%
691.94
21.05%
451.03
13.72%
79.61
371.42
(13.69)
50.51
408.24
80.31
327.93
US$ in Mn
44.01
28.71
15.30
9.26
6.04
1.07
4.97
(0.18)
0.66
5.45
1.08
4.37
5
Revenue and Gross Margin Analysis Q1 2022
Revenues
Gross margin
4.40% Increase in Revenue Resulted from
(1.63)% Decrease in Gross Margin Resulted from
Volume gains
Rate hike
3.84%
1.41%
Salary raises
(1.96)%
Lesser billing days
(0.76)%
Rupee depreciation
0.32%
Rate hike
0.92%
Lesser billing days
(1.17)%
Rupee depreciation
0.17%
6
Big Picture – Revenue & EBITDA %age – Quarter wise
350
280
248
210
12.5
140
70
0
. s r C n
i
₹
329
343
20.0
306
16.0
274
13.4
13.7
16.0
12.0
12.1
(%)
Q1 21
Q2 21
Q3 21
Q4 21
Q1 22
Revenue
EBITDA %
8.0
4.0
0.0
7
Quarterly Revenue Breakdown
By Geography (%)
75.0
67.5
67.6
70.2
69.7
71.5
50.0
25.0
-
14.2
15.7
14.3
15.3
12.8
13.7
13.0
13.9
1.9
0.7
2.0
0.8
2.6
0.7
2.5
0.9
12.8
12.3
2.5
0.9
Q1 21
Q2 21
Q3 21
Q4 21
Q1 22
* South East Asian Countries
North America
Europe
SEAC*
India
Others
Client Concentration (%)
40.0
30.0
20.0
10.0
-
28.1
25.2
19.0
14.2
8.1
17.4
13.0
7.2
23.4
22.7
22.7
15.6
11.9
7.0
15.1
11.1
6.5
14.7
11.0
6.6
Q1 21
Q2 21
Q3 21
Q4 21
Q1 22
The Largest Client
Top 3 Clients
Top 5 Clients
Top 10 Clients
8
Key Balance Sheet Data
Figures in ₹ in Crs. except “DSO”
As At
Mar 31, 2022
Dec 31, 2021
Receivable including unbilled
Receivable in days (“DSO”)
Net Cash Balance
Shareholders’ funds
260
55
273
493
231
52
277
460
9
Billable Associates
3,548
635
3,632
661
3,327
593
2,801
503
3,030
569
2,298
2,461
2,734
2,913
2,971
4,000
3,200
2,400
1,600
800
0
Added 80 + Technical Associates during Q1 2022
Q1 21
Q2 21
Q3 21
Q4 21
Q1 22
IT
BPO
10
Utilization %
100
95.4
95.7
95.6
96.6
96.5
78.5
76.5
76.7
74.5
77.5
75.5
77.1
74.9
75.8
72.2
(%)
75
50
25
0
Q1 21
Q2 21
Q3 21
Q4 21
Q1 22
Onsite
Offshore
Blended
11
Summing Up and Looking Ahead
• Started FY 2022 with robust
revenue
Continued Focus for 2022
growth
• Margins were impacted by salary hikes
• Partnering with customers in navigating
and attrition challenges
• Confident of margin expansion through rate hikes, better pricing and improved utilization
• Continue to invest in people and newer technologies, to deliver Next-Gen digital Evolution
successful digital transformations
• Ensuring safe and reliable operations
for all stakeholders
• Expand margins by efficient operations
and revenue growth
• Strong Balance Sheet for future growth
12
Nand Sardana
Chief Financial Officer Tel # 0120 – 4303506 Email: nand.sardana@rsystems.com
Kumar Gaurav
AVP Finance & Accounts Tel # 0120 - 4082650 Email: kumar.gaurav@rsystems.com
Bhasker Dubey
Company Secretary & Compliance Officer Tel # 0120 - 4303566 Email: bhasker.dubey@rsystems.com
Worldwide Headquarter R Systems International Ltd. C - 40, Sector - 59, Noida 201307 (UP), India P: (+91) 120-430-3500 F: (+91) 120-258-7123
USA Corporate Office R Systems Inc. 5000 Windplay Drive, El Dorado Hills, CA 95762 P: (+1) 916-939-9696 (+1) 800-355-5159 F: (+1) 916-939-9697
Thank You
© 2022 R Systems All rights reserved.