Sigma Solve Limited has informed the Exchange about Investor Presentation
Date: 26th May, 2023
To, The Manager Listing Department National Stock Exchange of India Limited Exchange Plaza, Bandra-Kurla Complex Bandra (E), Mumbai- 400 051, Maharashtra, INDIA
Scrip Code: SIGMA
Subject:- Investor/Analyst Presentation F.Y. 2022-2023
Dear Sir/ Ma’am,
Pursuant to Regulations 30 and other relevant regulations of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we enclose herewith a copy of Investor Presentation that will be shared with the analyst/investors.
The same shall be uploaded on our website www.sigmasolve.in.
Kindly take note of the same and update on record of the Company accordingly.
Thanking you. Yours faithfully, FOR, SIGMA SOLVE LIMITED
Prakash R Parikh Managing Director DIN: 03019773
Encl.:- A/a
FY23 INVESTOR PRESENTATION
Ranked # 2077 Inc 5000 America’s fastest growing 5000 companies
Disclaimer
This presentation and the accompanying slides (the “Presentation”), have been prepared by Sigma Solve Limited (the “Company”) solely for information purposes and do not constitute any offer, recommendation, or invitation to purchase or subscribe to any securities and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
Certain statements in this presentation concerning our future growth prospects are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The Risk and uncertainties relating to the statements include but are not limited to, risks and uncertainties regarding fiscal policy, competition, inflationary pressures, and general economic conditions affecting demand/supply and price conditions in domestic and international markets. The Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable. This Presentation may not be all-inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. The Company does not make any promise to update/provide such a presentation along with results to be declared in the coming quarters and years.
2
Q4FY23 Earnings Presentation
Sigma Solve: A Full Stack Technology Co.
o SSL specializes in delivering enterprise software development solutions.
o It blends creativity, extensive expertise, and robust business strategy to offer a
comprehensive range of services.
o Long-term relationships with clients and has an impressive client retention rate of 90%.
o Ranked #2077 ranked in INC 5000 Americas Fastest Growing Private Companies
o Technology backed and Entrepreneurial spirit driven culture
To take ownership of technology-driven projects based on Cost effective solutions, tech- driven consultancy
To deliver creative complete, effective business solutions for our clients
Augment skilled teams based on a hybrid model for cost efficiency
VISION Vision
MISSION Mission
VALUE PROPOSITION Value Proposition
3
Q4FY23 Earnings Presentation
#2077 Rank in Inc 5000 Americas Fastest growing Private Cos.
15+
Years in IT business
200+
Software Consultants
1000+ Mobile App & Website Developed
10 Trusted Technology Partnerships
Over a Decade of Experience
Ready to be counted in with the BIG BOYS!
2010
2014
2018
2020
2022
2023
Incorporated as Sigma Solve Limited with 2 employees in USA & India
Initial partnerships with 3Dcard (now Shift4Shop) - Onshore Operations & HQ Sunrise Florida
Microsoft.NET Silver partnership - 150+ employees
Listed on the National Stock Exchange – SME platform
Reached milestone of 200+ trained Software consultants
Received In- Principle Approval from NSE and BSE for migration of equity shares from NSE Emerge platform to Mainboard of NSE and BSE
4
Q4FY23 Earnings Presentation
Industry Opportunities - Impetus for Growth
The Future is Cloud
•
Businesses across the globe have been migrating to Cloud Services
• The growth in cloud adoption is anticipated to be robust due to its ability to
facilitate the adoption of emerging technologies like Augmented Reality (AR) and Blockchain.
• Cloud transformation is expected to have a longer and stronger cycle as
enterprises are still in the early stages, with only 30% of workloads migrated to the cloud.
CLOUD PENETRATION REMAINS BELOW 30% IN CRUCIAL VERTICLES
25
20
20
8
28
28
20
19
20
20
20
20
20
25
25
23
25
23
22
20
5
8
16
5
SaaS(%)
PaaS(%)
IaaS(%)
Enterprise Pvt
Dedicated
On-Demand
Cloud (%)
Hosted Pvt
Hosted Pvt
Cloud (%)
Cloud (%)
Banking
Retail
Transportation
Process Manufacturing
Mobile Apps bringing tremendous change to lifestyles
MOBILE APPLICATION MARKET SIZE (US$ BN)
725
• Mobile Applications are changing the way of doing business.
• Factors such as the expanding consumer base in the e-commerce industry and
the widespread adoption of smartphones contribute to the growth of the mobile application market.
• The market's growth is driven by the continued expansion of enterprise
applications, increased focus on health and fitness apps, thriving e-commerce, and the high demand for gaming apps with substantial downloads and in-app purchases.
SSL is poised for these growth opportunities
603.08
501.66
417.3
347.12
288.75
240.19
199.8
138.25
166.25
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Source : IDC, B&K Research Source; World Bank, Global Data 2019 Tech spend, Annual Reports
5
Q4FY23 Earnings Presentation
Management Commentary
“I am delighted to be a part of SSL, driving our organization into the dynamic world of technology. Over the past decade, SSL has been at the forefront of delivering innovative global solutions.
I am very happy to share that Sigma received approval from NSE and BSE for migration of equity shares from NSE Emerge platform to Mainboard of NSE and BSE. In FY23, we achieved remarkable results, with our revenue surging by an impressive 35% in FY23 and 3 Year Revenue CAGR being 74%. Our EBITDA and PAT has also shown strong 3 Year CAGR of 129% & 99%. Company has also won 20% more deals compared to last year. We have successfully achieved significant sequential in profits through efficient execution, operational scalability, and effective cost management. We maintain a strong belief in our growth plans, as we remain committed to delivering client-centric solutions that align with their goals.”
improvement
Mr. Prakash Parikh Managing Director
6
Q4FY23 Earnings Presentation
Unfolding the Growth Story
Record High Performance; Approval to Migrate Equity to NSE & BSE
Approval from NSE & BSE
1
o Received In-Principle Approval from NSE and BSE for migration of equity shares from NSE Emerge platform to Mainboard of NSE and BSE
5
Strong Cash Position
o Cash & cash equivalents for FY23 = Rs. 225.87 Mn; up 91% from FY22
2
3
4
Deal Wins
o 20% more deals won than in 2022
Record Revenue Performance
o Revenue at Rs. 555 Mn; up 35% o Revenue 3 Year CAGR = 74%
Skyrocketing Profits
o EBITDA & PAT = Rs. 224Mn & Rs. 153Mn resp. o EBITDA 3 Year CAGR = 129% & PAT 3 Year CAGR = 99%
7
Q4FY23 Earnings Presentation
Investment Thesis
Technocrat Leadership
Dedicated Workforce
Global Tie- ups & Marquee Clients
Simplification of Group Structure
Strong Financial Growth Trajectory
Deep Service Expertise
Customized Delivery Model
Well Diversified Revenue Streams
Well Established Global Footprints
Healthy Project Pipeline
8
Q4FY23 Earnings Presentation
Technocrat Leadership
Prerak Parikh CTO & Co-Founder
Preferences
Biren Zaverchand CEO & Co-Founder
Kent Nelson Considerations Vice President of Sales
Kevin Gajjar Business Development
o Holds a Bs. in Computer Science from FAU & Advanced Machine Learning Degree from MIT. o Holds 10+ years of strong
technical experience leading an enterprise software development company
o At Sigma Solve, he is in charge of researching & implementing emerging technologies and provides clients with the latest technological solutions.
o Graduated from Wayne State University with an MBA in Information Systems (Michigan).
o Has 20+ years of executive
experience.
o Provides expertise to
professionals engaged in design, business analysis, development, quality assurance, and project management
o Has over 20 years of
o Has 13+ years of experience
experience in the software domain, leadership, and management
o Holds degree in Marketing and Technology from the University of Tennessee.
o Expert in CRM, cloud migration, document management systems, workflows, and app development
in IT Services
o Has expertise in Business
Development
o Looks after market research, business planning, lead generation, relationship building, Contract negotiation, Proposal development and sales and revenue generation.
9
Q4FY23 Earnings Presentation
Hybrid Model Delivery by Tech-Driven Employees
o The company excels with a dynamic team of 200+
professionals.
o It utilizes a hybrid model for effective communication
and cost-efficiency
o The onshore team resolves client issues promptly
o The offshore team brings innovative problem-solving
ideas.
o Sales operate in the USA, operational team is in India
250
200
150
100
50
0
No. of Employees (Approx) & Employee cost as % of Revenues
37%
36%
33%
148
155
200
FY21
FY22
FY23
38%
37%
36%
35%
34%
33%
32%
31%
30%
10
Q4FY23 Earnings Presentation
Global Tie-ups & Diversified Client Base
Technology Partners
Servicing High Growth Sectors
Marquee Clients
Real Estate
Healthcare
Energy & Utilities
Fintech & Insurance
Manufactu ring
Retail & E- Comm
Travel & Hospitality Logistics
Education & E- Learning
Media & Entertainm ent
Oil/Gas
Taxation
11
Q4FY23 Earnings Presentation
Simplification of Group Structure – Sigma Solve Inc
Current Group Structure
Future Group Structure
SIGMA SOLVE LIMITED
~ 59.81% STAKE
SIGMA SOLVE INC
Sigma Solve INC is a subsidiary of Sigma Solve Limited which is based out of the USA. It acts as an ambassador to Sigma Solve Ltd in USA.
Steps
SIGMA SOLVE LIMITED
In order to unlock the full potential, Management is focused to simplify the Group Structure of
Sigma Solve Ltd by acquiring the remaining 40.19% stake.
12
Q4FY23 Earnings Presentation
Deep Service Expertise across Tech Platforms
Custom Software Development Advanced knowledge of web application development Mobile App Development SSL Offers mobile application development services in a variety of interfaces and native coding
Cloud Solutions Managed Cloud for Azure capabilities
eCommerce Development End to end solutions for implementing eCommerce strategy
Enterprise, ERP & CRM Solutions Solutions span from eCommerce CRM, CMS, Mobility & custom application
Microsoft .Net
C#
Vb.Net
Java Application
PhP Web Applications
Ruby on Rails Applications
iOS Apps
Android Apps
React Native
Game Development
AWS
Azure
Magento
Kubernetes
nopCommerce Development
Liferay
Magento
Shopify
Shift4Shop
MS Dynamics for ERP
Salesforce CRM
CRM Consultant & Implementation
Digital Marketing Services end-to-end digital marketing services
Salesforce .com
Power BI
Tableau
AI/ML & AR/VR
3rd Party Int. & API Integration
Social Media & Email Marketing
Analytics & Reporting
13
Q4FY23 Earnings Presentation
Customer-Centric Engagement Model
Onsite - Resource On Demand for effective communication and quick
resolutions
Offshore – maintains effective communication and overall success
ensuring cost-effectiveness of the project cost-effectiveness
Fixed/Hourly Billing – Customized as per client’s requirements and
can be executed in multiple phases
Dedicated Teams – access cross border expertise virtually cross-
border
Global Strategic Partnerships – work in collaboration with latest
technology worldwide
14
Q4FY23 Earnings Presentation
Well Diversified Revenue Stream
5%
25%
10%
25%
15%
15
Q4FY23 Earnings Presentation
Cloud Solutions
Design
Mobile Application
20%
Automation & Quality Assurance
Automation Ecommerce Development
Custom Development
Well Established Global Footprints
Florida USA
Atlanta USA
Australia
The Netherlands
1560 Sawgrass Corporate Parkway, Sunrise, Florida 33323
3350 Riverwood Parkway Atlanta GA, 30339
Suite 3, 1330 Ferntree Gully Road, Scoresby Victoria, 3179
The Netherlands, Amsterdam, 1069 GA
India
Ahmedabad Gujarat
16
Q4FY23 Earnings Presentation
Healthy Project Pipeline
Services (No. of Projects)
2022(A)
2023(A)
2025(E)
2027(E)
Mobile Solution
Digital Marketing Services
Cloud Solution
Web & E-Commerce Development
Application Development
Enterprise Solution
Design, Automation Testing & Quality Assurance
30
6
6
60
35
9
30
35
8
8
75
43
11
38
49
10
10
99
58
15
49
76
15
15
152
88
23
76
Company is witnessing a very strong project pipeline and expects this trend to continue for years to come
17
Q4FY23 Earnings Presentation
Key Deal Wins
Dental Insurance Software Product by Sigma Solve Inc
Write up for ChatGPT-based tool for Wineries
o Comprehensive Software Solution o Streamlined Operations o Enhanced Customer Experience o Advanced Analytics and Reporting o Scalability and Flexibility
o Personalized Wine Recommendations
o Vintage Information and Pairing
Suggestions
o Wine Inventory Management o Customer Service and Support o Wine Education and Training o Marketing Insights and Trends o Multi-lingual Support
18
Q4FY23 Earnings Presentation
Strong Financial Growth Trajectory
Revenue from Operations
EBITDA & EBITDA Margin (%)
PAT & PAT Margin (%)
3 Year CAGR = 74%
554
3 Year CAGR = 129%
411
37%
224
40%
3 Year CAGR = 99%
34%
25%
142
153
28%
212
104
20%
35%
150
73
19
18%
19
52
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
Net Cash from Operations
ROCE (%)
3 Year CAGR = 260%
47%
43%
ROE (%)
42%
197
36%
164
27%
30%
19
Q4FY23 Earnings Presentation
53
4
FY20
FY21
FY22
FY23
FY21
FY22
FY23
FY21
FY22
FY23
Note - All figures in Rs. Mn
Consolidated Income Statement
Consolidated Analysis FY23 v/s FY22
Particulars (₹ Mn)
Revenue from Operations
Other Income
Total Income
Employee Benefits Expenses
Other Expenses
EBITDA
EBITDA %
Finance Cost
Depreciation & amortization expenses
PBT
Current Tax Expense
Federal Tax
Deferred Tax Expense
Total Taxes
Profit/(Loss) for the year
Other Comprehensive Income/ (Loss)
Net Income
PAT %
Diluted EPS (Restated)
FY21
211.53
3.43
214.96
69.65
68.59
73.29
34.65%
0.07
3.19
73.50
3.28
18.18
0.03
21.5
51.98
-
51.98
24.57%
3.03
FY22
410.92
13.57
424.49
152.43
108.36
150.13
36.54%
0.03
2.32
161.35
3.23
16.56
(0.04)
19.8
141.6
-
141.6
34.46%
8.72
FY23
554.46
14.41
568.88
202.22
128.39
223.85
40.37%
0.10
3.83
234.34
9.66
71.53
0.39
81.59
152.76
-
152.76
28%
9.64
20
Q4FY23 Earnings Presentation
• Revenue from operations grew by 35% from ₹410.92 Mn in FY22 to ₹554.46 Mn in FY23 mainly due to an increase in the scale of operations and robust demand for the services provided by SSL.
• EBITDA grew by 49% from ₹150.13 Mn in FY22 to ₹223.85 Mn in FY23 and EBITDA Margins increased from 37% in FY22 to 40% in FY23
• PBT for the year increased by 45% to ₹234.34Mn
• PAT stood at ₹152.76 Mn in FY23 as compared to ₹141.56 Mn in FY22 showing a growth of 8% YoY. PAT Margins stood at 28% in FY23 and 34.5% in FY22
Consolidated Balance Sheet
Balance Sheet (₹ Mn) Assets
PP&E
Capital WIP
Intangible Assets
Financials assets
- Investments
- Loans
- Other Financial Assets
Deferred tax assets
Other Non-Current Assets
Non-Current Assets
Financials assets
-Investment
-Trade Receivables
-Cash & Cash Equivalents
FY21
FY22
FY23
6.88
0.06
0.10
5.74
0.06
0.07
6.25
65.82
0.04
Balance Sheet (₹ Mn) Equity
Equity Share Capital
Reserves & Surplus
Minority Interest
Shareholders Fund
47.92
43.32
260.04
Liabilities
0.23
4.45
59.64
9.86
36.11
109.86
0.26
0.54
49.67
164.60
32.39
118.45
0.54
332.69
12.01
54.24
225.87
Financial Liabilities
-Borrowings
-Other financial liabilities
Provisions
Deferred Tax Liabilities
Non-Current Liabilities
Financial Liabilities
-Borrowings
-Trade Payables
-Loans & advances
0.01
0.01
0.15
- O/S dues of micros & small enterprises
Other Current Assets Current Assets
Total Assets
0.87 156.71
216.35
0.62 316.07
365.74
6.25 298.51
631.20
- O/S dues of creditors other than above Other Current liabilities
Provisions
Liabilities for current tax
Current Liabilities
Total Equity & Liabilities
FY21
FY22
FY23
41.11
96.46
56.72
194.28
41.11
188.24
111.55
340.9
102.78
238.98
175.65
517.41
10.10
-
30.14
-0.25
10.10
2.06
1.45
1.45 7.96
0.48
2.05
-0.26
1.78
4.23
2.76
3.20
0.19
33.54
8.56
5.91
2.76 15.87
0.19
5.91 47.95
17.85
11.97
216.35
23.05
365.74
80.26
631.20
21
Q4FY23 Earnings Presentation
H2FY23 Financial Snapshot
300
250
200
150
100
50
0
277
278
45%
217
24%
17%
52
37
36%
29%
100
80
24%
124
66
H2 FY22
H1 FY23
H2 FY23
Revenue from Operations
EBITDA
PAT
EBITDA Margins
PAT Margins
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
22
Q4FY23 Earnings Presentation
Consolidated Financial Statement Highlights of H2FY23 v/s H2FY23
Particulars (₹ Mn)
Revenue from Operations
Other Income
Total Revenue
Total Expenses excluding Depreciation, Amortization & Finance Cost
EBITDA
EBITDA Margin (%)
Depreciation & Amortization
Finance Cost
PBT before Exceptional Item
Exceptional Items
PBT
Tax
PAT
Other comprehensive profit / loss
Net PAT
PAT Margin %
Diluted EPS (Restated)
H2 FY23
H2 FY22
277.59
9.79
287.38
154.02
123.57
216.55
(0.10)
216.45
164.63
51.92
YoY%
28%
-
33%
-6%
138%
H1 FY23
276.87
4.63
281.50
176.59
100.28
44.52%
23.98%
2054 bps
36.22%
2.11
0.06
131.20
-
131.20
65.61
65.59
-
65.59
23.63%
3.85
2.03
0.01
49.77
-
49.77
12.95
36.82
-
36.82
17%
3.29
4%
500%
164%
-
164%
407%
78%
-
78%
663 bps
17%
1.72
0.04
103.14
-
103.14
23.09
80.06
-
80.06
28.92%
5.1
23
Q4FY23 Earnings Presentation
• Revenue from operations increased by 28%
owing to the robust demand for the Company’s services and speedy execution of services.
• EBITDA increased to ₹123.57Mn; up 138% YoY. •
• PBT has increased by 164% to ₹131.2Mn.
• PAT Margins have increased from 17% in
H2FY22 to 24% in H2FY23.
Growth Plans For FY24 and Beyond
1
2
3
4
Maintain a strong order $550- book averaging 600k providing healthy revenue visibility for the next 3-4 months
Strategic acquisitions to and growth drive profitability through global partnerships
Continue successful client various acquisitions technologies,
in
24
Q4FY23 Earnings Presentation
Achieve efficiencies revenue charge-out rates
operational higher
and
Shareholding Pattern As of 31st March'2023
27%
73%
Public
Promoters
SYMBOL
SIGMA
ISIN
LISTED
INE0A0S01010
NSE (SME)
MKT CAP (As on 23rd May 2023) Rs. 256 Cr.
52 WEEK HIGH/LOW
Rs. 307.80/Rs. 171.80
CURRENT MARKET PRICE (as on 23rd May’2023)
Rs. 249
Shareholding Pattern
Particulars
No. of Shares
% of Holding
Public
27,52,500
26.78%
Promoters
75,24,998
73.22%
Total
1,02,77,498
100%
25
Q4FY23 Earnings Presentation
THANK YOU
Company Contact:
SIGMA SOLVE Limited Contact: 079-29708387 Email: compliance@sigmasolve.net
Investor Relations Contact:
Tanya Verma Go India Advisors Tanya@GoIndiaAdvisors.com M:+91 97270 30985
Sana Kapoor Go India Advisors sana@GoIndiaAdvisors.com M:+91 81465 50469
Sheetal Khanduja Go India Advisors sheetal@GoIndiaAdvisors.com M:+91 97693 64166
For further information on the company, please visit – https://www.sigmasolve.com/