LATENTVIEWNSEQ3 FY2023February 01, 2023

Latent View Analytics Limited

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57turns
7analyst exchanges
2executives
Management on call
Rajan Sethuraman
CEO
Rajan Venkatesan
CFO
Key numbers — 40 extracted
2 million
e able to expand the scope of work. One of them was reported in the earlier quarter as the first $2 million plus account that we had won. Since then, we have expanded the scope of work that we are doing fo
85%
etting invited to the party head on this RFP deals as well. In the past we have indicated that 80-85% of our business comes through a sole sourced type of situations where we are co- creating the opp
14%
ation mechanism has also improved quite a bit in the last quarter. We have been now able to staff 14% more roles through internal rotation as opposed to finding people for every new role through the
10%
ns PII: No On a quarter-on-quarter basis, we reported a revenue growth of about 10% on a sequential basis and 35% on a year-on-year basis. We closed the quarter with revenue of Rs.
35%
n a quarter-on-quarter basis, we reported a revenue growth of about 10% on a sequential basis and 35% on a year-on-year basis. We closed the quarter with revenue of Rs. 145 crores, which is the highe
Rs. 145 crore
10% on a sequential basis and 35% on a year-on-year basis. We closed the quarter with revenue of Rs. 145 crores, which is the highest that we ever clocked in the company's history. The growth was broad based,
Rs. 22.1 crore
ed about. Coming to profitability, you would see that other income for the current quarter was at Rs. 22.1 crores which grew significantly compared to the Rs. 8 odd crores of other income that we had in the las
Rs. 8
er income for the current quarter was at Rs. 22.1 crores which grew significantly compared to the Rs. 8 odd crores of other income that we had in the last quarter. Just wanted to let you know that, of c
Rs. 1 crore
the treasury portfolio that we have. But besides that, last quarter we had a forex loss of about Rs. 1 crore, compared to that, in the current quarter we've actually booked a forex gain of Rs. 6.5 crores or
Rs. 6.5 crore
about Rs. 1 crore, compared to that, in the current quarter we've actually booked a forex gain of Rs. 6.5 crores or close to Rs. 7 crores in the quarter. There's a swing of almost Rs. 7.8 crores between last q
Rs. 7 crore
to that, in the current quarter we've actually booked a forex gain of Rs. 6.5 crores or close to Rs. 7 crores in the quarter. There's a swing of almost Rs. 7.8 crores between last quarter and this quarter o
Rs. 7.8 crore
a forex gain of Rs. 6.5 crores or close to Rs. 7 crores in the quarter. There's a swing of almost Rs. 7.8 crores between last quarter and this quarter on account of forex. So, that helped the other income. The
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Guidance — 20 items
Asha Gupta
opening
“In case anyone does not have the copy of press release or presentation or you are not in our mailing list, please do write to us and we will be happy to send you the same.”
Asha Gupta
opening
“Rajan Sethuraman whom we will be referring to as Rajan and we also have CFO of the company Mr.”
Asha Gupta
opening
“Rajan Venkatesan whom we will be referring to as Raj to avoid the confusion while doing transcription.”
Asha Gupta
opening
“We will be starting the call with a brief update of the quarter which will be given by Rajan, which will be then followed by the financials given by Raj.”
Rajan Sethuraman
opening
“You will remember that I have talked about adding more people at the front end as well as capability and delivery right for the European practice as that's one geography that we intend to double down on.”
Rajan Sethuraman
opening
“Overall at this point in time, we are expecting that the next quarter will actually result in plenty of conversations of a similar nature and we are expecting that some of the opportunities that are currently in fly will also get closed out before the end of the fiscal year.”
Rajan Venkatesan
opening
“I know we've been guiding the market that we will maintain EBITDA margins in the range of 25% to 28% and we continue to maintain that stand and we will continue to invest in growth as well as capability building in the coming quarters.”
Rajan Venkatesan
opening
“Hopefully we will be able to push one or two of these to the next stage and come out with an announcement fairly soon.”
Rajan Venkatesan
opening
“But the next few quarters, we hope to replicate the performance that we've delivered through the current year.”
Vimal Gohil
qa
“You do expect the work to come back in subsequent quarters whenever?”
Risks & concerns — 4 flagged
These risk and uncertainties are included but not limited to what we have mentioned in the prospectus filed with the SEBI and subsequent annual report that you can find on our website.
— Asha Gupta
In fact, I would expect that in the coming quarters the ratio should actually improve for us, so no concern on profitability because of that account.
— Rajan Sethuraman
We are not witnessing any billing pressures at least or billing rate pressure at this point in time.
— Rajan Venkatesan
I just had a quick follow up for Raj can you give us some guidance in terms of your CAPEX requirements in the medium term I understand that right now you guys are operating from a single location in Chennai so as you scale up would you be leading a newer facility and how would that put pressure on your balance sheet?
— Hitesh Malla
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Q&A — 7 exchanges
Q
Yes, thank you for your opportunity, sir. So, my first question is on the large, some of the large accounts that you spoke about are sort of sluggish. Firstly, just wanted to clarify, these are amongst the top ten accounts. I'm sorry if you've already highlighted this, because I came in a bit late, but these are part of your top ten accounts, right?
Rajan Sethuraman
Yes, that's correct some sluggishness in terms of starting off new initiatives within these accounts. We have renewed all of our ongoing work and there has been no issue with respect to the renewals. Typically, the renewals happen in the November-December time frame, given that is the end of the financial year for most of these accounts. So, all the renewals have been completed we don't have any issues on that front, but some of the newer initiatives that these organizations are contemplating, there is some amount of sluggishness on that. But there's no issue in terms of the work being shelved
Q
Hello, sir. Thank you for the opportunity and congratulations on the great set of numbers. Sequentially I want to know what happened in the CPG retail vertical because it declined again, we saw some uptick in Q2, but then now it's back down in Q3 and relating to that only relating to verticals only, what happened in the industrial vertical, what is performing well out there?
Rajan Venkatesan
I'll take the question on retail, specifically CPG and retail. The sluggishness that you see is all attributable to one fairly large project. This is in fact, a data engineering project that we are doing for a fairly large retail account in the US. As far as the project is concerned, there is while we went through we started this project in Q2 of FY 23 the project itself went through some bit of scoping changes as well as there was overall rethink on what the project requirements were. Therefore, what happened, essentially in Q3 was we had to go back and sit with the client and really rescope
Q
My first question was on bill rates. We are hearing a lot of chatter around Hi-tech clients requesting for reduction in bill rates given their own cost savings initiatives, is that something that you are seeing with your contracts as well?
Rajan Venkatesan
Not really so like I mentioned a lot of our large customers we just went through around extensions and renewals and we have not heard of any negotiations on billing rates. In fact, we have been able to renew an extent on the same rate as last year. In fact, we have been right through the whole of last year we were actually pushing for 3%, 4%, 5% increases across most of our clients and that is what we have witnessed within our client set we have not had any instances where the customers come back or the clients come back and ask for lowering the billing rates. We are not witnessing any billing
Q
Can you give me some more insights for me to get a better understanding that when you reach out to clients whom do you compete against, is it large companies which are into consulting or is it niche data analytics focus companies and what is the competitive landscape for your business?
Rajan Sethuraman
Pankaj is a mix of both, but we see competition from other pure play niche data analytics companies like us that is one segment. We see competition from some of the large strategy consulting firm including the likes of BCG or McKinsey for example and many of them are talking about their analytics capabilities that they are building. So, we see them in the context of some of the opportunities. We see competition also from traditional large IT system integrators and IT services organization like Accenture and Infosys and TCS for example. So, it is a mix of all three and then sometimes we also ha
Q
Couple of questions from my side firstly on the order book which I had spoken about you mentioned that order book expanded significantly and also you mentioned that there are five large deals in the pipeline, so any quantification in terms of the order book or deal wins or anything you can share in terms of deal ratio which will help us understand and forecast growth rate better?
Rajan Venkatesan
Karan, as a number we are not giving out order book numbers at this point in time. All that I can say is like I mentioned typically a lot of the extensions that happened within our clientele happen in the December and January timeframe which will typically give us revenue visibility for the next three to four quarters. So, all the extensions that we have within our clientele has come through and that is what is resulting in a fairly healthy order book. We will not be able to give you an exact number at this point in time, but coming to your question on the pipeline each of these deals is great
Q
I just had a quick follow up for Raj can you give us some guidance in terms of your CAPEX requirements in the medium term I understand that right now you guys are operating from a single location in Chennai so as you scale up would you be leading a newer facility and how would that put pressure on your balance sheet?
Rajan Venkatesan
To be honest with you we never had CAPEX while yes it is true that we have been operating out of the single facility. We also have a co-working facility in Bangalore apart from our own premises that we have or our own lease premises that we have in Chennai. Given our growth ambitions and targets for the next year if assuming there is a situation where 50% of our workforce starts coming back to work. At present we are still following a hybrid model where about on average 25% of 30% of our workforce comes into the office on any given date. Now if that were to materially change where we have abou
Q
Thank you Faizan and thank you all for joining the session today. I just wanted to leave you with a little bit of feel good, we are pretty excited about some of the actions that we are seeing on the CSR front as well while there are many initiatives that we are partnering with. One of the flagship programs that we are driving is called as a Chennai Kaalpandhu League, Kaalpandhu stands for football in Tamil so you can equate it with Chennai Football League. This is an initiative that we are kicked up prior to the pandemic, but which went into a pause mode because of all the challenges related t
Management
Speaking time
Rajan Sethuraman
17
Moderator
10
Rajan Venkatesan
8
Krishna Thakker
6
Vimal Gohil
4
Hitesh Malla
4
Karan Uppal
4
Pankaj Murarka
3
Asha Gupta
1
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Opening remarks
Asha Gupta
Thank you Faizan. Good evening to all participants in this call. Welcome to the Q3 FY 23 Earnings Call of Latent View Analytics Limited. The Results and Presentation has already been mailed to you and you can also view them on the website at www.latentview.com. In case anyone does not have the copy of press release or presentation or you are not in our mailing list, please do write to us and we will be happy to send you the same. To take us through the results today and to answer your questions we have the CEO of the company – Mr. Rajan Sethuraman whom we will be referring to as Rajan and we also have CFO of the company Mr. Rajan Venkatesan whom we will be referring to as Raj to avoid the confusion while doing transcription. We will be starting the call with a brief update of the quarter which will be given by Rajan, which will be then followed by the financials given by Raj. As usual, I would like to remind you that anything that is said on this call that reflects any outlook for the
Rajan Sethuraman
Thanks Asha. Thank you all for joining the call. Wanted to start off by wishing everybody a Happy New Year. We are very happy to report another very strong quarter for Latent View Analytics. I will give you some of the business highlights and then after that I will pass it on to Raj to talk about some of the financials. Starting off first with client addition, this quarter we added five new accounts and the good news for us was that one of these was in the European region. You will remember that I have talked about adding more people at the front end as well as capability and delivery right for the European practice as that's one geography that we intend to double down on. Since the onboarding of our new Europe business head, this is the first new account that we have won in the Europe region and this is in the BFSI space in the asset management investment area and we are very happy that we are able to bring this client onboard. We also onboarded another new client in the India APAC re
Rajan Venkatesan
Thank you, Rajan. Good evening everyone and wish you all a very happy New Year. We are very happy to announce another strong quarter. Like Rajan mentioned, Q3 has traditionally been a fairly strong quarter for us and this Q3 was no exception. Classification: Confidential Contains PII: No On a quarter-on-quarter basis, we reported a revenue growth of about 10% on a sequential basis and 35% on a year-on-year basis. We closed the quarter with revenue of Rs. 145 crores, which is the highest that we ever clocked in the company's history. The growth was broad based, but was primarily driven through our tech verticals, which is our strongest verticals, industrials and BFSI. Both those verticals contributed to the strong growth that we have witnessed. During the current quarter, what we've also witnessed is our order book grew, and expanded significantly. Some of the sluggishness that the Rajan was alluding to has not really trickled down to our order book. In fact, a lot of the client set tha
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