R Systems International Limited has informed the Exchange regarding Investor Presentation This is with reference to our intimation dated March 01, 2019 regarding Investors/ Analysts call of the R Syst...
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Caring - Innovating - Transforming
R SYSTEMS INTERNATIONAL LIMITED Corporate Identity Number: L74899DL1993PLC053579 [CMMI Level 5, PCMM Level 5, ISO 9001:2008 & ISO 27001:2005 Company] C-40, Sector-59, NOIDA, Distt. Gautam Budh Nagar, U.P. lndia-201307
Phones: +91-120-4303500 I Email : rsystems.india@rsystems.com I Regd. Off.: B-104A, Greater Kailash-1,
Fax : +91-120-2587123
www.rsy~tems.com
New Delhi - 110 048
REF: SECT/03/2019/03
March 05, 2019
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 March O 1, 2019 regarding Investors/ Analysts call of the R Systems International Limited ("the Company") on Tuesday, March 05, 2019.
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 March 05, 2019 on the financial results for the quarter and year ended December 31, 2,018.
The presentation is also available on the website of the Company i.e. www.rsystems.com.
This is for your information and records.
Thanking you,
Yours faithfully,
For R Systems International Limited
Bhasker Dubey (Company Secretary and Compliance Officer)
@ ... like the Oyster Delivering the Pearl
--Cor'ng - lrinova<:ng - Tronsformi'lg
Analytical Review - Q4 & Year 2018 Results
xso 9001
2015 :
~,,,, 27001:2013
. cMM1 0Ev 1s a PCMM/ s
,~
Disclaimer
■
II
"Investors are cautioned that this presentation contains forward looking state_ments
that involve risks and uncertainties. The Company undertakes no obligation publi"cly
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."
w ww .rsystems,c0m
2
- // Key Highlights Q4 2018
~ R~venue ~ 192.45 Cr (US$ 26.84 mn)
QoQ Increase
YoY Increase
3.25% (0.48% in US$)
23.75% (11.77% in US$)
• ■
•
c...:
·-
-- - - -~ - - - -~ - - -~- ----------J
~ EBITDA
:{ 18.24 Cr (US$ 2.57 mn)
■ Q4 2018 • Q3 2018
..,.
Cl0 • er,
m . 0 .-1 ,--i
Q4 2017
,... .-< ui
EBIT DA REVENUE%
,-------------------- ~ Profit After Taxes
:{ 26.00 Cr (US$ 3.74 mn)
Earnings Per Share
~ 2.11 ~-------------------
-----------, ,------------ .....
Key Wins
:
: Share Holder I
Funds
1' 322.90 Cr
or
I
! l _______ _
$ 46.28 mn
"" - - - - - - - - -- ..,.
I
- - - -- - - - - - .....
' : Cash and Bank
Balances
1' 199.84 Cr
or
$ 28.64 mn l ___________ _ 1
- - ./
www.rsy.stems.com
3
// Key Highlights Year 2018
• •
~ Revenue ~ 699.89 Cr fUS$ 102.47 mn)
YoY Increase
18.10% (12.59% in US$)
,-------------------- ~ Profit After Taxes
~ 51.04 Cr (US$ 7.48 mn)
Earnings Per Share
~ 4.14 , __________________ _
~EBITDA
~ 57.73 Cr (US$ 8.46 mn)
■ Year 2018 _ Year 2017
II\ N co
00
'° I.I\
EB IT D A REV ENUE%
,-------------, Key Wins
1 1
Associates Added
www.rsystems.com
'4
// Key Highlights (Continues ... )
fj ■
[J ■
Reported Record INR Revenue of~ 700 Cr. in Vear-2018.
Telecom and Digital Media contributed ~ 25% share of revenues.
Serving 21 million dollar plus customers on run rate basis.
Added 18 key wins during the year.
0 Net Addition of 400 associates over the year 2018. 0 Margins improved due to revenue growth, discipline in execution along with rupee depreciation.
www.rsystems.c:om
Financial Perform·ance - Contribution Analysis - Q4 2018
Particulars
Revenues
Cost of revenues
Gross margin
SG&A
Expenses
EBITDA
Depreciation and amortization
Income from operations I , Interest expense
Other income (net)
Income before income tax
Income tax provision
Net earnings
www .rsyste_ms.com
■ II
■
Q4 2018
Q4 2017
ll~R
US$
1,924.53
1,269.06
655.47
34.06%
473.06
24.58%
182.41
9.48%
34.53
147.88
(0.58)
177.17
324.47
64.51
259.96
26.84
17.68
9.16
6.59
2.57
0.48
2.09
(0.01)
2.59
4.67
0.93
3.74
INR
1,555.23
1,082.37
472.86
30.40%
376.91
24.23%
95.95
6.17%
34.61
61.34
(0.13)
48.93
110.14
39.01
71.13
~ - Q3 2018
US$
INR ·
US$
24.01
16.71
7.30
5.82
1.48
0.53
0.95
(0.01)
0.75
1.69
0.60
1.09
1,863.95
1,225.97
637.98
34.23%
432.30
23.19%
205.68
11.03%
34.44
171.24
(0.71)
(16.24)
154.29
28.92
125.37
26.71
17.54
9.17
6.17
3.00
0.49
2.51
(0.01)
(0.25)
2.25
0.42
1.83
6
- // Revenue & Gross Margins Analysis - Q4 2018
•
0
3.25 ~o Increase in Revenue Resulted from:
Rupee depreciation primarily against USO
2.19'}o
Volume Impact
1.06'}o
[~
{0.17) % Decrease -in Gross Margin Resulted from:
Impact of Lesser billable days
(0. 72}'7o
Impact due to rupee depreciation
0.55'}-o
www.r:systems.com
7
// Financial Performance - Contribution Analysis - Year 2018
• •
Particulars
Revenue
Cost of revenue
Gross margin
SG&A
Expenses
EBITDA
Depreciation and amortization
Income from operations
Interest expense
Other income (net)
Income before income tax
Income tax provision
Net earnings
Year 2018
Year 2017
INR
US$
INR
US$
(Figures in mn)
6,998.89
4,702.17
2,296.72
32.82%
1,719.46
24.57%
577.26
8.25%
135.48
441.78
(2.65)
187.69
626.82
116.37
510.45
102.47
68.84
33.63
25.17
8.46
1.98
6.48
(0.04)
2.74
9.19
1.70
7.48
5,926.38
4,137.23
1,789.15
30.19%
1,452.35
24.51%
336.80
5.68%
134.80
202.00
(3.98)
155.42
353.44
128.10
225.34
91.01
63.53
27.48
22.31
5.17
2.07
3.10
(0.05)
2.38
5.43
1.97
3.46
www.rsystems.com
8
// Revenue & Gross Margins Analysis - Year 2018
•
:·
REVENUES
$.
18.10 % Increase in Revenue Resulted from:
Volume Impact
11. 734},o
Impact due to Rupee depreciation
6.37'}o
. ~ - - - - - - - - ---- [ ~~ s
2 .. 63 l}o Increase in Gross Margin Resulted from:
Rupee Depreciation
2. 74'}o
Impact due to increase in utilization
2.244},o
Salary Increment Impact
(2.35)4}o
www.rsystems.com
9
1 l Big Picture - Revenue & EBITDA %age •
II ■
220.00
200.00
-
rr. ~ ;., ... 0 (..> = ....
tlY'
180.00
160.00
140.00
120.00
100.00
80.00
60.00
40.00
20.00
- - ~
- -
-
-
-
12.00
11.03
~ ~~J~-~J
-
~q
'----
10.00
- -
144.30
147.92
-
144.89 .
155.52
- - I
I
I
I
I
.-..-
I
/
'L
I
I ~
1
I
I
I
152.20
I
I
7n /
I
Ii
I
I
8.00
/
,1
I
I
I
I
I
I
I
I
I
-~ H H H H H H H
- - - --
--
.
I- -
- Q2-18
Q3-18
Q4-18
Ql-17
Q2-17
Q3-17
Q4-17
Ql-18
Revenue ~EBITDA %
6.00
%
4.00
2.00
-
www.rsystems.com
10
// Consolidated Key Balance Sheet Data
■
■
, in Crores except "DSO"
As at Dec 31, 2018
-
.. · - .. ___ - ,.·>F~~ .As at Dec 31, 201:!~ --- - ·--·-=-
- -.,_~ ----'
-
Share Holders' Funds
322.90
270.87
Receivables
136.55
120.76
Receivables in days "DSO" for the quarter
67
68
Cash & Bank'
Fixed Assets
199.84
162.68
35.07
35.38
www.rsvstems:-Com
11
// Billable Head Counts and Utilization
■
■ - - - - - - - -
2,352
2,379
79.3%
78.8%
78.8%
2,400
2,000
1,600
1,200
800
400
60.0%
40.0%
20.0%
OJ)%
Q4-17
Q1-18
Q2-18
Q3-18
Q4-18
Q4-17
Q1-18
Q2-18
Q3-18
Q4-18
www.rsys.tems.com
12
// Revenue Breakdown
By Geography
■ ■
-
100%
I t~
I 3.2w
13-~% I
l ~-W
f~.n,; I
90%
80%
7r:ffo
60%
50%
40%
30%
20%
10%
0%
lj
laBj
20.7
17.S
18.41
1-J
16.9
19.6%
J
7.l.%
23.3t
I
I
18.7
.
54.9
S.7
/
/
I
I
I
I
•
l
I
1
A •
■
I
•
I
"
I
I
I
■ '
I
I'
I
Q4-17
Ql•l8
Q2-18
Q3-18
Q4-18
USA
Europe
SEAC * 11 lndla
Others
* South East Asian Countries
www:rsystems.com
-
I
-
■ •
Client Concentration
- (
I
33.4%
36.1%
35.8%
36.4% -
35.2%
I
23.3%
30.0% V I
21.s%
16.7%
...J 20.0% ~ I I I 10.0% ~ ,,,...
5.9%
-
24.1% r
24.0%
I
23.2%
16.5%
16.5%
115.5%
r-:~
I
1 5.9%
6.6%
-
I
I
0.0%
' 1 The Largest Client
: Top 3 dients
· Top 5 Clients
Top 10 Clients
-
Q4-17 6.0%
15.6%
21.8%
33.4%
Ql-18 5.9%
16.7%
23.3%
36.1%
Q2-18 6.6%
16.5%
24.1%
35.8%
Q3-18 6.4%
16.5%
24.0%
36.4%
Q4-18 5.9%
15.5%
23.2%
35.2%
, -
-
..
-
-
13
// Summing Up and Looking Ahead
1111! ■
•
Strong performance in 2018 with healthy revenue growth and margin improvement.
Our investment in digital technologies is yielding visible results.
I ~ 1·
;:::,;
lnnovizant acquisition has strengthened R Systems' digital practice with its niche advance data analytics competencies.
Promising start for Year 2019 with encouraging sales pipeline. Expanded present Greater Naida SEZ facility to add 350 seats to cater to the growth.
Focus for 2019:
• Leverage digital offerings for profitable growth
• Partnering Customer for their digital transformation using cutting edge technologies
• Maintain discipline in execution to enhance margins
• Strong balance sheet to invest for future growth
www.rsvstems,corn
14
// Contact Information
II ■
■
and Sara a1 a
Chief Financial Officer
Tel # 0120 - 4303506 Email: nand.sardana@rsystems.com
AVP Finance & Accounts
Tel # 0120 - 4082650 Email: kumar.gaurav@rsystems,com
hank You for your Support
Bhasker Dubey
Company Secretary & Compliance Officer Tel # 0120 - 4082633 Email: bhasker.dubey@rsystems.com
www.rsvstems.com