Silver Touch Technologies Limited has informed the Exchange regarding Investor Presentation
Silver Touch"
TECHNOLOGIES
Date: 06/05/2019
To, The Manager Listing Department National Stock Exchange of India Limited Bandra Kurla Complex, Bandra (East),. Mumbai - 400 051.
Dear Sir / Madam,
Subject: Latest Investor Presentation
Symbol: SILVERTUC
With reference to the captioned subject and pursuant to applica ble provisi~ns of Regulation 30 of i SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 Please find enclosed herewith the Latest investor presentation of Silver Touch Technologies Limited
This is for your kind reference and record.
Silver Touch Technologies Limited 2nd floor, Saffron Tower, Nr. Panchwati Circle, Ahmedabad-380006 Gujarat, India Tel + 917926563158, Fax + 917926561624, www.silvertouch.com
CIN : L72200GJ1995PLC024465
INVESTOR PRESENTATION MAY 2019
SAFE HARBOR
Certain Statements In This Document May Be Forward Looking Statements. Such Forward-looking Statements Are Subject To Certain Risks And Uncertainties Like Government Actions, Local Political Or Economic Developments, Technological Risks, And Many Other Factors That Could Cause Our Actual Results To Differ Materially From Those Forward-looking Contemplated By Statements. Silver Touch Technologies Limited, Will Not Be In Any Way Responsible For Any Action Taken Based On Such Statements And Undertakes No Obligation To Publicly Update These Forward-looking Statements To Reflect Subsequent Events Or Circumstances
The Relevant
Partnering in PM Vision for Digital India – A Programme to Transform India into Digitally Empowered Society and Knowledge Economy”
01
REVEAL & BUILD NEW POSSIBILITIES
Unlock the infinite possibilities to
shape the future using IoT, AI & ML
Regularly track new technologies, industry
segments and market trends in the
Digital solutions market and keep the
pace by working together with ecosystem players like IBM,
Oracle, SAP, Dell, VMware, Amazon, CISCO etc.
STRENGTH TO S
T R E N G T H ; S T T
L 4 CORE’S
ELEVATE INTELLIGENCE
STTL has adopted emerging technologies & Develop scalable solutions to enhance business proficiency with Blockchain, Artificial Intelligence (AI), Machine Learning (ML), Big Data and Analytics
CONCENTRATION
STTL’S incessant focus is on further enhancement of digital platforms and portfolio, build industry and technology frameworks, stay tuned with emerging technologies
QUALITY DELIVERANCE
Blending technologies with Incomparable talent and everyday advancing skills to offer apt services that meets perfection
02
MANAGEMENT ADDRESSAL : A COMMITMENT TO THE STAKEHOLDERS
Dear Stakeholders,
The financial year 2019 saw most of the large global economies do better than in the last few years, while developments in technology continued picking pace.
We want to start with a quick business recap for before getting into the strategic rationale and other details this year so far. We have been growing and building scale in our existing verticals, over the last 2 years, we have executed 4 core strategies very well and our business model is further enhancing. Our revenues has grown 15%+ CAGR over the last 2 years, largely organic growth in e-governance, system integration, digital transformation, analytics, cloud and security. Our growth can be purely attributable to our deliverables and our order size has been gradually growing in each of our business verticals and this has been strongly propelled by our strong partnerships which are further buoying and crossing a million dollar run rate and this is a perfect opportunity and a great inflection point to take some next big steps.
On the business there is continuing optimism in the demand environment. Our bookings for the year has been very strong till date. We do believe that we will have a very strong booking quarter as we close. Our pipeline remains strong. Our organic growth momentum picked up in FY19 and some of that will have a follow-on effect in FY20 and more importantly it is picking up across all service lines, we will continue to track to the midpoint of the revenue guidance of 20%+ for fiscal ’20.
As we continue to expand our footprint, it is imperative that we accelerate, reinvent and reimagine ourselves to overcome the challenges of an ever-evolving technology and business landscape. At the same time, we also remain committed to creating a sustainable business with a clear focus on CSR, diversity and inclusion.”
As a company, our pursuit to make an impact in all walks of life continues unabated, and we want to thank you all - our clients, our employees, our partners and our stakeholders, for continuing to repose your trust in us. This is our driving force and makes us want to do our best in these exciting times ahead.
03
THE SPIRIT OF STTL IS THE CORE OF STTL
“It is about who we are. It is our character. Our vision lies in our approach of innovating technology and enriching it with a user-friendly experience. We work to give you the lead in your competition and take you at the top of it. It is reflected consistently in all our behavior.
The Spirit is deeply rooted in the unchanging essence of STTL. It also embraces what we must aspire to be. It is the indivisible synthesis of the four values. The Spirit is a beacon. It is what gives us direction and a clear sense of purpose. It energizes us and is the touchstone for all that we do.”
04
FACTSHEET & ESSENTIALS
22+
Years of Versatile Experience in IT Industry 1400+Qualified IT Professionals
4000+ Projects Delivered Successfully
750+ Mobile Applications Developed
2000+ Clients Worldwide
Listed on NSE Emerge, Market Capitalisation: INR 1500mn
100+ SAP ERP Implementations
Subsidiaries in USA & UK
Focused on Startups & New Technologies
500+ Websites & Portals Developed
Pan India Presence
Empaneled with Government of India
05
STTL BUSINESS : REVOLUTIONIZING LANDSCAPE
Silver Touch has rich pool of human capital, optimized processes and state-of-the-art-technologies to deliver best breed of Digital Solutions helping small & midsize enterprises and businesses
With decades of experience and with thousands of successful projects delivered, STTL IS outperforming technology needs of citizens as well by handling and managing mega government projects
Further STTL has achieved strategic empanelment with Government of India’s GeM, NIC, NICSI & various State Governments, STTL’s assistance in e-governance projects is benefitting millions of users to connect with their smart government
STTL perseverance is “To earn clients’ trust and maximize the value of their businesses by providing solutions that integrate deep industry insights, leading technology and best-in-class execution”.
06
STTL EDGE : A PERSPECTIVE
“ YOUNG AGILE. LEAN COMPETITIVE
overlook
enterprises 21st Century cannot the importance of continuous reinvention, to sustained competitive advantage in a constantly evolving business landscape.
the key
in
STTL’s customers today are an undergoing unprecedented change and transformation their businesses led by forces such as Digital, Consumerization of Industry platform disruptions, and competition from new age companies across industries
technology,
07
STTL ACCELERATING THE JOURNEY TOWARDS NEW HORIZONS WITH AN INNOVATIVE MINDSET
STTL was founded in 1995 with a view to deliver our clients with the optimum Information Technology Solutions in the fields of Software Development, ERP Solutions, E-Governance and System Integration.
STTL is recognized for its comprehensive portfolio of services, strong quality processes, rich experience in managing clients and great transformational capabilities across various business verticals enable STTL to align IT strategies to business goals.
CMMi Level 5 Quality Certification , ISO 27001 Security Certification, ISO 20000 Service Certification & ISO 9001:2000
STTL has now grown to a mid-size company with its global clientele, and have subsidiaries at UK and USA
STTL has inked domestic and international alliances and Joint Ventures which has enabled the Company to expand its geographical reach and create diverse clientele.
Empaneled with Govt. of India - NIC, NICSI & Various State Governments
08
STTL MILESTONES
1995 – 2000
2001 – 2005
2006 – 2010
Received 1st order from Government of Gujarat
Solution development for Y2K
T5P Empanelment
ISO 9001: 2008 Quality Certification
IBM & Microsoft Premier Partnership Web empanelment with Government of Gujarat Vision 2000 Accounting Package Share transfer software product
CeBit International Trade Fair Exhibit
First offshore order from Europe & USA Commenced UK Operations with a 100% Subsidiary Implemented IITS Project for Labor & Legal Department –
Goa CMMi level 3 Quality Certification
09
STTL MILESTONES
2011 – 2016
2011 – 2016
Received CMMi level 5 Certification Received ISO 27001 & ISO 2000 Certification Setup branches/offices in New Delhi & Mumbai Commenced operations in the USA through a WHO subsidiary Executed multiple orders of INR 100 mn+
Begin ODC operations in USA, Europe
Maiden listing in the Indian Capital Market (NSE Emerge) on 1st December, 2017
Milestone of revenues surging INR 1500 mn+ accomplished
10
LEADERSHIP POOL
Mr. Vipul Thakkar – Chairman & Managing Director
Mr. Vipul Thakkar is the Chairman & Managing Director of Silver Touch Technologies Ltd. He holds a Bachelor’s Degree in Computer Engineering with a Masters in Business Administration and has over 22 years of experience in E-governance and Software Solutions. He has started his career with a leading IT company and soon decided to start his own venture. He founded Silver Touch in 1995 with likeminded friend, Mr. Jignesh Patel for deliverance in IT Solutions and Services and was joined later on by Mr. Minesh Doshi and Mr. Palak Shah. He is a keen observer of technology results and a firm believer in the potential around him. He has developed a remarkable foresightedness with regard to new developments in technology which has helped him to bring the company to its current level of performance and scale.
Mr. Thakkar is a true technology leader and always encourages young talent. Due to his sheer dedication and
devotion, Silver Touch has grown by leaps and bounds.
Mr. Thakkar has overall experience of 22 years in E-Governance and Software solutions and Networking. He
is currently looking after Finance & Administration of the Company.
Mr. Jignesh Patel – Whole-Time Director
The success of a visionary can only be realized through well managed operations, and that’s exactly what Jignesh Patel brings to Silver Touch. He is Diploma in electronics engineering. He started his career at HCL Ltd. and then joined with other founding directors of Silver Touch to create the venture from the formative stage. From a humble beginning of hardware and software sales, today Silver Touch has reached its present mature stature due to Mr. Patel’s efforts and hard work with large clients, always seeking to understand their requirements and creating optimal solutions. Mr. Patel specializes in designing and implementing large networks including LAN and WAN. His passion is to grow big by maintaining the highest possible quality, which has made Silver Touch a premium Business Partner of IBM, CISCO, Microsoft, Oracle and SAP.
Mr. Jignesh Patel has overall experience of 22 years in IT infrastructure sales & service.
11
LEADERSHIP POOL
Mr. Palak Shah – Whole-Time Director
Mr. Palak Shah is a software engineer who joined Silver Touch to share the vision of Mr. Vipul Thakkar. He has a specialization in Information Systems Planning and executing large software projects on the Internet. He has pioneered the development of e-Governance projects for various government agencies. He leads the technical software team at Silver Touch and oversees all software development projects. Many of Silver Touch’s software products, such as School Management Software, Point of Sale for Textile Retail Outlets, Human Resources Management Systems, and Asset Management Systems, are the a result of his creative brilliance.
Mr. Palak Shah has overall experience of 21 years in Information Systems Planning and executing large software projects on the Internet and in E-Governance Project. He is currently looking after software development & finance.
Mr. Minesh Doshi – Whole-Time Director
Mr. Minesh Doshi is a qualified Computer Engineer and a technology professional with profound experience in process and quality management, software engineering, project and operations management and human resources management.
He started his career with INFLIBNET, a Government of India undertaking. He has acquired expertise in
driving quality management initiatives and in implementation of quality principles and process standards.
A keen planner and strategist, Mr. Doshi has demonstrated initiative and leadership in driving organizations on the technology and engineering front with an intensive focus on total quality management. His core competency lies in business development, and he has initiated new business units in software/ITeS projects, bringing to bear his vast experience in contract management, building complex business deals, costing and presales.
Working closely with the Government of Gujarat’s e-Governance drive, he has successfully implemented many software modules including complete automation of 18 Municipal Councils, Technical Examination Board, Labour & Employment, and Government Printing & Stationary etc.
Mr. Doshi has overall experience of 21 years in experience in process and quality management, software engineering, project and operations management and human resources management. He is currently looking after Business development and Human resource department.
12
SERVICES
E-GOVERNANCE We are serving citizens needs while working on government projects for more than two and a Our E-Governance service practices include a vast array of services.
decades.
half
2000+
Projects Delivered
SOFTWARE SERVICES Using the latest technology, we develop applications that will help you achieve thoroughly an insightful and efficient way of working. The possibilities are endless.
1000+
Applications Develped
SYSTEM INTEGRATION Silver Touch understands that system integration is crucial to enable the business to support today’s digital agenda. It demands solutions that securely interface and connect from a mobile office into the enterprise, enabling you to categorize and manage the real-time flow of information that’s so essential to flexible business operations. We work with our clients to enable business change, thus evolution.
10000+
Cores Develped
500pb
Storage Capacity Delivered
DIGITAL TRANSFORMATION Digital Transformation is an integration of digital technologies into various business and technology areas. It’s a kind of cultural change that requires continuity challenge and an imperative business model. Moreover, it closes the gap between how the digital customer would expect and what actually it delivers.
Use the Digital Transformation approach to create, plan and innovate application. Become a digital enterprise within your organization and deliver your first app with leveraging the cloud platform. The companies are struggling with technology to innovate and grow the product evolution with changing the customer preferences.
SAP SOLUTIONS With an extensive SAP portfolio of 125+ Projects Globally business and its processes,Silver Touch Technologies works with customers to uncover their business potentials that drive growth,improves ROI and lowers risk.
understanding
thorough
of
a
13
BUSINESS MODEL OFFERING
Exit Criteria Roles and Responsibilities, Preliminary Design Site Map
2. Application Testing 3. End User Testing 4.Training
Analysis starts with the requirements and produces a specification of what the system does
requirement study
2.1
2.2
2.3
3
Design Phase It begins after requirement specification and produces a description of how the system will be built from implementation- oriented component
Analysis Phase
Detailed examination of the elements or structure of requirement & study requirement document
2
System Requirement
The output of the analysis phase is a specification document. - Description of the input and output - Defines the relationship - Generates test cases - Defines Assumptions & Risk factors
Testing: This phase includes, 1. Unit testing 2. System Testing 3. System integration Test 4. System acceptance Test
3.1
4
Development Phase: It begins with the design specification completed.
4.1
4.2
Coding & Debugging:
Encoding of the design in a programming language to produce a working system & debug the code to test the error.
1
1.1
1.2
Problem Definition:
It Facilitate for understanding the problem & develop Problem Statement.
Feasibility Study:
Prepare an assessment of the practicality of a proposed plan or method which is Requirements document.
5
Go Live
The first time that system can be used, after all the tests
7
Maintenance Phase
Maintenance begins when the system is put into service. It includes
1. Fixing 2. Adaptation 3. Enhancement
14
SECTORS CATERED
Banking
Corporate
E-Commerce
Education
E-Governance
Entertainment
Fashion
Healthcare
HR
Manufacturing
Research
Transport
Travel
Wholesale
15
SUSTAINABILITY HIGHLIGHTS RECOGNITIONS, AWARDS & ACCOLADES
SME Business Excellence Award for IT & IT Enabled Services 2018
Channel World Premier 100 The Imagina�ve 100 2018
GESIA 7th Annual Award For Excellence Best System Integrator Company 2016
IPTV Partners Leadership Award
2016
CRN Challenges - Award Awarded as India's best System Integration 2013
Oracle Partner Network Strategic Deal Partner Excellence Award 2013
SAP Business One Forum Best Implementation Partner - West Award 2012
Partner Leadership Award 2019 Best System Integrator in Government Vertical
16
TO RECKON WITH; BRANDED CLIENTELE
DOMESTIC & GOVERNMENT CLIENT
1.
Inspector General of Registration (IGR)
2. Commissioner of Transport (CoT)
3. Ministry of Textiles
4. NHPC
5. Gujarat UrjaVikas Nigam Ltd
6. ONGC
7. Ministry of External Affairs
8. Haj Committee of India
9. UP-NRI Department
10. Ministry of Tourism- Government of India
11. Haryana State Industrial and Infrastructure Development Corporation (HSIIDC)
12. Gujarat Informatics Limited
13. RailTel
14. General Insurance Corporation of India
17
TO RECKON WITH; BRANDED CLIENTELE
INTERNATIONAL CLIENT
1. Vagaro- USA
2.
Invidasts- USA
3. Sysguaro- USA
12. Flinter- USA
13. Iheadphones- USA
14. Adar Medical Uniforms- USA
4. Clarion Insurance Company- USA
15. Apttus- USA
5. Mastertek Consulting- USA
16. CN softnet Inc.- USA
6. ETurns Powered- USA
17. Procare Portal LLC- USA
7. E4hats.com Inc- USA
18. Property Store- USA
8. Fashion Snoops- USA
19. Zyber Cloud- USA
9. London Pilsner- USA
20. Well Told Story - WTS – Africa
10. Olive e-Solutions LLC- UAE
21. Novacom Systems Limited- UAE
11. Noble Biocare- USA
18
INDUSRTY DYNAMICS
INTRODUCTION
The global sourcing market in India continues to grow at a higher pace compared to the IT-BPM industry. India is the leading sourcing destination across the world, accounting for approximately 55 per cent market share of the US$ 185-190 billion global services sourcing business in 2017-18. Indian IT & ITeS companies have set up over 1,000 global delivery centres in about 80 countries across the world.
India has become the digital capabilities hub of the world with
around 75 per cent of global digital talent present in the country.
MARKET SIZE
India’s IT & ITeS industry grew to US$ 167 billion in 2017-18. Exports from the industry increased to US$ 126 billion in FY18 while domestic revenues (including hardware) advanced to US$ 41 billion.
Spending on Information Technology in India is expected to grow
over 9 per cent to reach US$ 87.1 billion in 2018.*
Revenue from digital segment is expected to comprise 38 per cent
of the forecasted US$ 350 billion industry revenue by 2025.
INVESTMENTS/ DEVELOPMENTS
Indian IT's core competencies and strengths have attracted significant investments from major countries. The computer software and hardware sector in India attracted cumulative Foreign Direct Investment (FDI) inflows worth US$ 32.23 billion between April 2000 to June 2018, according to data released by the Depart- ment of Industrial Policy and Promotion (DIPP).
Leading Indian IT firms like Info- sys, Wipro, TCS and Tech Mahindra, are diversifying their offerings and showcasing leading ideas in blockchain, artificial intelli- gence to clients using innovation hubs, research and development centres, in order to create differentiated offerings.
19
INDUSRTY DYNAMICS
GOVERNMENT INITIATIVES
ROAD AHEAD
Some of the major initiatives taken by the government to promote
IT and ITeS sector in India are as follows: • The government has identified Information Technology as one of 12 champion service sectors for which an action plan is being developed. Also, the govern- ment has set up a Rs 5,000 crore (US$ 745.82 million) fund for realising the potential of these champion service sectors. • As a part of Union Budget 2018-19, NITI Aayog is going to set up a national level programme that will enable efforts in AI^ and will help in leveraging AI^ technology for development works in the country.
ACHIEVEMENTS
Following are the achievements of the government during 2017-18:
•
•
•
About 200 Indian IT firms are present in around 80 countries.
IT exports from India are expected to reach highest ever mark of US$ 126 billion in 2017-18.
Highest ever revenue was generated by Indian IT firms at US$ 167 billion in 2017-18.
India is the topmost offshoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging tech- nologies now offer an entire new gamut of opportunities for top IT firms in India. Export revenue of the industry is expected to grow 7-9 per cent year-on-year to US$ 135-137 billion in FY19. The industry is expected to grow to US$ 350 billion by 2025 and BPM is expected to account for US$ 50-55 billion out of the total revenue.
20
SECTORAL INSIGHTS
E-GOVERNANCE
communicate,
Technology has revolutionized how governments function and interact with the citizens globally. Citizens can connect gaining & access to information with ease, in a more secure and reliable environment. In the midst of globalization, and emerging technologies, gov- ernment officials are explor- ing new ways of connecting with the citizens.
BANKING
investment
The advances in digital technology have changed the approach in most industries. Banking & Finance have been slow in adopting due to the legacy applications in use and mainly due to their high-risk category. The need for better engagement and improved is returns on making financial marketers move to the digital platform. 25% of the banking and in US institutions financial alone offer advanced mobile app features to connect with their consumers. The next finance and banking gen institutions offer consistent user experience, as well as stable thus infrastructure differentiating their delivery models.
CORPORATE
Enterprises are becoming dynamic, and it’s time the employees and the end con- sumers match footsteps with the changing environment. It is critical to align your busi- ness processes with the solu- tions in order to deliver per- sonalized and more relevant information which can help make quick decisions. There is a need for enterprises to achieve high performance and productivity with reduced thus operational improving the ROI.
costs,
21
SECTORAL INSIGHTS
ENTERTAINMENT
E-COMMERCE
Informed consumers, increased mobility and the increasing demand for conve- nience are transforming the retail industry as a whole. The buying behavior and changing media habits are adding to this transformation. Technol- ogy is gradually integrating the different processes with the help of technology to reduce the risks and opera- tional costs, and improve pro- ductivity.
There has been an observed change in the media & enter- tainment consumption habits of the consumer since the digital revolution. With real-time access to digital content like e-books and videos, life for the modern consumer has changed com- pletely. With changing con- sumption patterns, it’s time for media & entertainment to go ahead with innovative IT strategies to keep a track on consumer the behavior, and deliver content in for better engagement and conver- sions.
real-time
changing
EDUCATION
for
investing
techniques
Education industry has been continuously in improved technology learning and methodology. The investment soared by 55% in 2014, and is all set to go higher in coming years. According to Global Industry the should e-learning market have reached $107 in 2015, and is expected to increase by another 13% by 2017. The ever expanding knowledge is all set ecosystem to unleash the potential of digital learning practices.
Analysts,
22
is
on
currently STTL working few product development areas and on emerging technologies and would be looking to expand the product offerings in near future with significant revenue growth
PERFORMANCE DRIVERS & GROWTH INITIATIVES
will
be STTL at looking strategic tie-ups and acquisition in cloud ERP, software area
STTL is strengthening their presence in PAN India and have specific expansions plans in USA and UK for global market expansion
STTL will grow their strength areas core such as Government & PSU Solutions, Cloud & engineering Product services, & Consulting services
ERP
23
REVENUE MODEL & REALIZATION’S
SEGMENTAL REVENUES Software Services
E Governance
INR Mn
FY16 FY17 FY18
FY16 FY17 FY18
FY16 FY17 FY18
FY16 FY17 FY18
System Integration
EBIDTA MARGINS % Software Services
System Integration
374
429
458
826
594
829
22%
22%
18%
8%
11%
10%
FY16 FY17 FY18
FY16 FY17 FY18
FY16 FY17 FY18
FY16 FY17 FY18
SAP Solutions
E Governance
SAP Solutions
173
121
313
9
42
41
25%
23%
21%
15%
19%
18%
24
SEQUENTIAL PERFORMANCE
Particulars (INR MN)
FY 19 H1
FY18 H2
Shift %
FY 19 H1
FY 18 H1
Shift %
Revenue from Operations
1,050.30
874.58
1,050.30
765.69
6.41
4.95
6.41
4.33
1,056.70
879.53
20.14%
1,056.70
770.02
37.23%
973.45
774.00
973.45
719.97
102.38
105.53
-2.98%
102.38
72.67
40.90%
Other Income
Total Revenue
Total Expenses
EBITDA
EBITDA Margin (%)
Depreciation
Finance Cost
9.7%
12.1%
12.14
12.96
7.00
4.31
PBT with Exceptional Item
83.25
88.26
-5.68%
Exceptional Items
PBT
Current Tax
Deferred Tax
Tax
PAT
PAT Margin %
-
83.25
22.50
(2.59)
19.91
63.34
6.0%
-
88.26
33.94
0.45
34.39
53.87
6.1%
-5.68%
17.57%
9.7%
12.14
7.00
83.25
-
83.25
22.50
(2.59)
19.91
63.34
6.0%
9.4%
13.16
9.46
50.05
66.34%
-
50.05
66.34%
18.00
0.45
18.45
31.60
100.45%
4.1%
25
PROFIT & LOSS
Particulars (INR MN)
Revenue from Operations
Other Income
Total Revenue
Total Expenses
EBITDA
EBITDA Margin (%)
Depreciation
Finance Cost
PBT with Exceptional Item
Exceptional Items
PBT
Tax
PAT before Minority Interest
Minority Interest
Share of profit of associate
PAT
PAT Margin %
Diluted EPS
FY16
1,382.44
8.06
1,390.50
1,259.30
131.20
9.44%
54.81
31.35
45.05
-
45.05
15.05
30.00
-
-
30.00
2.2%
FY17
1,186.07
12.66
1,198.74
1,137.50
136.38
11.38%
43.77
31.38
61.23
-
61.23
19.14
42.09
-
-
42.09
3.5%
7.52
FY18
1,640.28
9.27
1,649.54
1,511.24
178.19
10.80%
26.12
13.76
138.30
-
138.30
52.84
85.45
-
-
85.45
5.2%
6.78
26
BALANCE SHEET
Liabilities (INR MN)
Share Capital
Reserve and Surplus
Total Shareholders Fund
Non-Current Liabilities
Long term Borrowing
Deferred Tax Liabilities
Other Long term Liabilities
Long Term Provision
Total Non Current Liability
Current Liabilities
Short Term Borrowing
Trade Payable
Other Current Liabilites
Short Term Provision
Total Current Liabilities
Total
FY16
55.95
324.26
380.21
47.52
8.18
5.97
-
61.66
169.61
306.10
103.77
38.53
618.01
1,059.88
FY17
55.95
362.98
418.93
30.65
8.09
5.31
-
44.04
118.37
53.43
78.38
35.66
285.84
748.82
FY18
125.95
525.39
651.34
11.80
8.99
5.73
-
26.52
-
295.94
108.80
77.91
482.64
1,160.51
27
BALANCE SHEET CONTD
Assets (INR MN) Fixed Assets Tangible Assets Intangible Assets Capital Work in Progress Intangible Assets under development
Total Fixed Assets Non Current Investment Long Term Loans and Advances Other Non-Currents Assets Goodwill
Total Non Current Assets Current Assets Current Investment Inventories Trade Receivable Cash & Cash Equivalent Short term loans and Advances Other Current Assets
Total Current Assets Total
FY16
162.31 1.72 - -
164.03 0.16 25.15 46.57 -
235.90
- 55.86 603.95 51.44 112.74 -
823.98 1,059.88
FY17
165.46 1.63 - -
167.08 1.31 29.62 31.02 -
229.03
- 16.51 340.33 56.21 106.74 -
519.79 748.82
FY18
153.80 1.44 2.49 -
157.73 10.56 40.73 37.34 -
246.36
- 30.11 641.50 128.42 114.13 -
914.15 1,160.51
28
FINANCIAL PROFILE
STTL delivers a solid growth driven by services across Verticals and Geogra- phies, reporting 28% Y-o-Y growth in Sales mainly on the back of larger ticket size orders, 30.65% Y-o-Y growth in EBIDTA and 103% Y-o-Y growth in profit after tax for 6MFY19. The growth was led by spurt in business growth in E- Gov- ernance and Software Services.
The systems integration business grew 40%, SAP solutions business grew 23% and software services business grew 7% on a yearly basis, with the company expanding its product portfolio and its existing capacities, it is expected to continue its steady growth.
STTL continues its strong deal win momentum, signing transformational deals this quarter, which are a mix of services across all our service lines. These deals were led by sectors such as Financial Services, Technology & Services and Manufacturing.
Further, STTL is currently working on scale-ups in employee utilization of the existing manpower resources and addition of newer resources for newer projects/products.
Operating Cash Flow / Net Income conversion at 95% (on LTM basis).
STTL currently has an ROCE of 21% compared to its ROCE 3 years ago, which was 12% indicating that the free cash flows has been prudently utilized for growth strategies.
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FINANCIAL OUTLOOK
Revenue: revenues to increase at 25% CAGR over FY18-21E; earnings to grow at 30% CAGR, this growth can be mainly attributed by growth driven in the e-gov- ernance sector. Operating Margin (EBIT): FY’19 expected Operating Margin (EBIT) range is from 11% to 12% & EPS accretion of ~25% expected.
Growth in the E governance business from increased and effective utilization as it will be replicating models which have already been developed for varied agen- cies and government bodies. STTL is well positioned in the global market with marquee customer base, robust margins, strong balance sheet and diversified product portfolio.
$500 Mn plus market opportunity in large growing market areas like artificial intelligence, software services and E governance which are strategic segments for STTL
STTL proposes to grow in an organic manner but may look at opportunities to buy or collaborate or do a strategic tie up (in ERP, AI, Business Transformation) with smaller companies that provide services which are complementary in nature and/or if there are significant growth opportunities, acquisition if any, would be smaller in nature and the ideal size could be in the range USD 1-5million.
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KEY MESSAGES
STTL has successfully executed various projects in India and globally including USA & UK
Additionally, STTL has partnered with several domestic and international partners on Joint Venture basis which has enabled the Company to expand its geographical reach and create diverse clientele across domains, across technologies, and across geographies
STTL is strengthening its focus on E - Governance, in an endeavor to become the most trusted government partner & services provider
STTL has recorded a growth of 35% in last financial year i.e. FY18 and expecting to record similar growth trend in this fiscal as well
STTL believe in organic growth of the organization, STTL’s growth strategy would be multi-fold.
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CORPORATE GOVERNANCE & CSR
FAIRNESS & EQUITY
TRUST & TRANSPARENCY
STRONG CORPORATE GOVERNANCE FRAMEWORK
COMPLIANCE & ACCOUNTABILITY
COMMITMENT TO VALUES AND INTEGRITY
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THANK YOU
COMPANY SILVER TOUCH TECHNOLOGIES LIMITED Phone : +91-79-26563158, info@silvertouch.com www.silvertouch.com
INVESTOR RELATIONS ADVISORS VINAYAK SHIRODKAR | KRUNAL SHAH Captive IR Strategic Advisors Pvt Ltd Contact: +91 22 4347 2247 Email: vinayak@cap-ir.com, krunal@cap-ir.com
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