R Systems International Limited has informed the Exchange regarding Investor Presentation.This is with reference to our intimation dated May 10, 2019 regarding Investors/ Analysts call of R Systems In...
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R SYSTEMS INTERNATIONAL LIMITED Corporate Identity Number: L74899DL1993PLC053579 [CMMI Level 5, PCMM Level 5, ISO 9001:2015 & ISO 27001:2013 Comp any] C-40, Sector-59, NOIDA, Distt. Gautam Budh Nagar, U.P. lndia-201307
Phones: +91-120-4303500 Fax: +91-120-4082699
I
Email: rsil@rsystems . com www.rsystems.com
Regd. Off.: GF -1-A, 6, Devika Tower, Nehru Place, New Delhi-110019
REF: SECT/05/2019/20
May 14,2019
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, 1 Mumbai Samachar Marg, Fort, Mumbai - 400 001
Floor,
st
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 10, 2019 regarding Investors/ Analysts call of R Systems International Limited ("the Company") on Tuesday, May 14, 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 May 14, 2019 on the financial results for the quarter ended March 31, 2019.
This is for your information and records.
Thanking you,
Yours faithfully,
For R Systems International Limited
� Bhasker Dubey (Company Secretary and Compliance Officer)
Analytical Review – Q1 2019 Results
9001:2015 27001:2013
5
// 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.”
www.rsystems.com
2
// Key Highlights Q1 2019
Revenue ₹ 196.30 Cr. (US$ 27.91 mn)
Key Wins Q1‐19
QoQ Increase
2.00% (4.00% in US$)
YoY Increase 28.97% (18.08% in US$)
Net Profit after Taxes
₹ 12.38 Cr. (US$ 1.76 mn)
Earnings Per Share
₹ 1.00
Share Holder’ Funds#
₹ 332.71 Cr.
$ 48.11 mn
EBITDA ₹ 17.63 Cr. (US$ 2.51 mn)
Q1 2019
Q1 2018
Q4 2018
8 9 . 8
8 4 . 9
3 5 . 4
E B I T D A R E V E N U E %
Cash Balance #
₹ 200.26 Cr.
$ 28.96 mn
www.rsystems.com
# Before buyback of Rs. 23.99 Cr.
3
// Key Highlights (Continues…)
Reported INR Revenue of 196 Cr. in Q1 2019 with 29% yoy growth. Revenue growth is driven by strong demand for digital services coupled with Innovizant acquisition.
Digital Revenue contributes > 40% .
Serving 26 customers having million dollar plus revenue on run rate basis.
Net Addition of 100 associates during Q1 2019.
Expanded our Greater Noida SEZ facility with 28,000 sq. ft.
Margins have improved compared to first quarter of earlier years despite the salary raises and rupee appreciation.
www.rsystems.com
// Financial Performance – Contribution Analysis – Q1 2019
Particulars
Revenues
Cost of revenues
Gross margin
SG & A Expenses
EBITDA
Depreciation and amortization
Income from operations
Interest expense
Other income (net)
Income before income tax
Income tax expense
Net earnings
Q1 2019
Q1 2018
(Figures in mn) Q4 2018
INR
US$
INR
US$
INR
US$
1,962.99 1,302.19
660.80
33.66%
484.52
24.68%
176.28
8.98%
43.05
133.23
(3.80)
59.19
188.62
64.80
123.82
27.91 18.51
9.40
6.89
2.51
0.62
1.89
(0.05)
0.84
2.68
0.92
1.76
1,522.03 1,059.68
462.35
30.38%
393.46
25.85%
68.89
4.53%
32.90
35.99
(0.72)
19.80
55.07
16.56
38.51
23.64 16.46
7.18
6.11
1.07
0.51
0.56
(0.01)
0.31
0.86
0.26
0.60
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
www.rsystems.com
5
// Revenue & Gross Margins Analysis – Q1 2019
REVENUES
2.00 % Increase in Revenue Resulted from:
Volume Impact 3.42%
Rupee appreciation (1.42)%
GROSS MARGIN
(0.40) % Decrease in Gross Margin Resulted from:
Impact of increment (0.88)%
Impact due to rupee appreciation (0.11)%
Decrease in travel and other COGS 0.59%
www.rsystems.com
6
// Big Picture – Revenue & EBITDA %age
200.00
160.00
152.20
s e r o r C n i ₹
120.00
80.00
40.00
Revenue EBITDA %
4.53
Q1-18 152.20 4.53
186.39
11.03
192.45
9.48
196.30
8.98
168.84
7.12
Q2-18 168.84 7.12
Q3-18 186.39 11.03
Q4-18 192.45 9.48
Q1-19 196.30 8.98
%
12.00
10.00
8.00
6.00
4.00
2.00
www.rsystems.com
7
// Consolidated Key Balance Sheet Data
Particulars
As at Mar 31, 2019 As at Dec 31, 2018
₹ in Crores except “DSO”
Share Holders’ Funds #
332.71
322.90
Receivables
133.26
136.55
Receivables in days “DSO” for the quarter
62
63
Cash balance #
200.26
199.84
# Before buyback of Rs. 23.99 crores.
www.rsystems.com
8
// Billable Head Counts and Utilization
2,800
2,400
2,000
1,600
1,200
800
400
2,352
2,379
2,463
2,233
2,147
80.0%
76.9%
76.6%
78.8%
78.8%
78.2%
60.0%
40.0%
20.0%
0.0%
Q1-18
Q2-18
Q3-18
Q4-18
Q1-19
Q1-18
Q2-18
Q3-18
Q4-18
Q1-19
www.rsystems.com
9
// Revenue Breakdown
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
By Geography
Client Concentration
3.2% 1.8%
18.6%
3.6% 1.7%
18.8%
3.0% 1.5%
18.4%
2.7% 1.6%
4.0%
1.3%
19.6%
15.7%
20.7%
17.5%
16.9%
17.1%
16.2%
40.0%
30.0%
36.1%
35.8%
36.4%
35.2%
35.3%
24.1%
23.3%
24.0%
23.2%
22.8%
20.0%
16.7%
16.5%
16.5%
15.5%
15.9%
55.7%
58.4%
60.2%
59.0%
62.8%
10.0%
5.9%
6.6%
6.4%
5.9%
6.1%
Q1 - 18
Q2 - 18
Q3 - 18
Q4 - 18
Q1 - 19
USA
Europe
SEAC *
India
Others
* South East Asian Countries
0.0%
The Largest Client Top 3 Clients Top 5 Clients Top 10 Clients
Q1 - 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%
Q1 - 19 6.1% 15.9% 22.8% 35.3%
www.rsystems.com
10
// Summing Up and Looking Ahead
Promising start for Year 2019 with robust yoy revenue growth.
Our investment in digital technologies and sales & marketing activities is yielding visible results.
Scope to improve margins through growth momentum and discipline in execution.
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.rsystems.com
11
// Contact Information
Kumar Gaurav
AVP Finance & Accounts
Tel # 0120 ‐ 4082650 Email: kumar.gaurav@rsystems.com
www.rsystems.com
Nand Sardana
Chief Financial Officer
Tel # 0120 – 4303506 Email: nand.sardana@rsystems.com
Thank You for your Support
Bhasker Dubey
Company Secretary & Compliance Officer Tel # 0120 ‐ 4082633 Email: bhasker.dubey@rsystems.com