INTENTECHNSEQ4 & FY19June 13, 2019

Intense Technologies Limited

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Management on call

Ck Shastri

Founder and Managing Director of the company; Mr. Jayant

H.M. Nayak

Chief Financial Officer and

Anisha Shastri

Director and VP, Business Operations.

Key numbers — 25 extracted

rs,

ne. Thank you very much for joining the call, really appreciate it. I will straight go to the numbers, the performance during the year brings out the strength in our business model, despite having a ver

Rs. 58 crore

having a very tough last two years, we have turned it around and the revenues for the year are at Rs. 58 crore as compared to Rs. 55 crore last year, and an EBITDA of Rs. 12.72 crore as compared to Rs. 8.17 c

Rs. 55 crore

years, we have turned it around and the revenues for the year are at Rs. 58 crore as compared to Rs. 55 crore last year, and an EBITDA of Rs. 12.72 crore as compared to Rs. 8.17 crore last year. The Q4 revenu

Rs. 12.72 crore

revenues for the year are at Rs. 58 crore as compared to Rs. 55 crore last year, and an EBITDA of Rs. 12.72 crore as compared to Rs. 8.17 crore last year. The Q4 revenue stood at Rs. 16.58 crore and an EBITDA of

Rs. 8.17 crore

. 58 crore as compared to Rs. 55 crore last year, and an EBITDA of Rs. 12.72 crore as compared to Rs. 8.17 crore last year. The Q4 revenue stood at Rs. 16.58 crore and an EBITDA of Rs. 1.70 crore. In the light

Rs. 16.58 crore

and an EBITDA of Rs. 12.72 crore as compared to Rs. 8.17 crore last year. The Q4 revenue stood at Rs. 16.58 crore and an EBITDA of Rs. 1.70 crore. In the light of these numbers, the Board has recommended for a

Rs. 1.70 crore

as compared to Rs. 8.17 crore last year. The Q4 revenue stood at Rs. 16.58 crore and an EBITDA of Rs. 1.70 crore. In the light of these numbers, the Board has recommended for a 10% dividend as a positive miles

10%

and an EBITDA of Rs. 1.70 crore. In the light of these numbers, the Board has recommended for a 10% dividend as a positive milestone, which we hope to repeat hereafter. Our platform is also seeing

Rs. 60 crore

Jaganathan T: That is 55 exports in 45 domestic? CK Shastri: To be exact, exports is about Rs. 60 crore and domestic is around Rs. 40 crore. Jaganathan T: Okay. And the receivables figure is predomin

Rs. 40 crore

s in 45 domestic? CK Shastri: To be exact, exports is about Rs. 60 crore and domestic is around Rs. 40 crore. Jaganathan T: Okay. And the receivables figure is predominantly from domestic customers or the

Rs. 4.8 crore

g Q4? And how long were they outstanding for? CK Shastri: These receivables were about close to Rs. 4.8 crore, about 2.5 years or so it's the outstanding has been. Shreehari Shreenivas: Okay. With respect t

50%

aximum number of days outstanding for these receivables? CK Shastri: If we really look at it, 50% of them, especially international customers, we get in about 60 to 90 days, whereas 50% of them ty

Guidance — 20 items

CK Shastri

opening

“In the light of these numbers, the Board has recommended for a 10% dividend as a positive milestone, which we hope to repeat hereafter.”

Jaganathan T

“I just would like to understand why is the receivables figure so high?, and I will be happy to understand what is the receivables figure?”

CK Shastri

“But we are very confident that the above 6 months will be cleared in this quarter.”

CK Shastri

“Particularly for strategic reasons we don't want to exactly pick up a particular customer’s revenue and take it on, because it will be a detriment to all of us if we give those numbers.”

CK Shastri

“But what you are saying is, the delta will be much higher?”

CK Shastri

“Or in other words FY20 H Jayant Dwarkanath: Yes, it will be significantly higher.”

CK Shastri

“30 crore investment into such a large deal, then the question might come is saying that, “hey were you right in taking such a big risk?” But at that point in time, we know people, large companies like TCS and a whole lot of big companies, the Huawei, Nokia, all these guys do business, we have also done and we didn't expect that we will get run into the regulatory issues and other issues because of which the project got delayed.”

CK Shastri

“And we hope to see those markets now also producing this year.”

Utsav Shrivastav

“And going forward, the pipeline also in the BFSI sector is looking good.”

Utsav Shrivastav

“Those are the ad spaces that will be monetized.”

Risks & concerns — 3 flagged

And it took us two years, and we were in such difficult times, to get it back on track it took us two years and in fact hit us very, very badly out of the three years.

— CK Shastri

30 crore investment into such a large deal, then the question might come is saying that, “hey were you right in taking such a big risk?” But at that point in time, we know people, large companies like TCS and a whole lot of big companies, the Huawei, Nokia, all these guys do business, we have also done and we didn't expect that we will get run into the regulatory issues and other issues because of which the project got delayed.

— CK Shastri

One is that the entire telecom sector is in some kind of stress, firstly, what is the percentage of telecom to the entire thing?

— Utsav Shrivastav

Q&A — 4 exchanges

I just would like to understand why is the receivables figure so high?, and I will be happy to understand what is the receivables figure? And also it seems you have written-off some significant amount this time. So, what was the background of receivables figure?

CK Shastri

If you really compare our receivables from last year to this year, our receivables have come down. And typically being an enterprise products business, we have anywhere between 60 to 90 days as a process for receiving. Okay. So, in terms of geographic distribution, the majority of your revenues come from which region? If there is around 55 to 45 typically, we were about 4,950, but the last year because of our managed services opportunity we had about 55 and 45. That is 55 exports in 45 domestic? To be exact, exports is about Rs. 60 crore and domestic is around Rs. 40 crore. Okay. And the recei

These receivables were about close to Rs. 4.8 crore, about 2.5 years or so it's the outstanding has been. Shreehari Shreenivas: Okay. With respect to the current receivables, what is the average and maximum number of days outstanding for these receivables?

CK Shastri

If we really look at it, 50% of them, especially international customers, we get in about 60 to 90 days, whereas 50% of them typically take a longer period, especially one of the public sector ones is taking longer, it had its own challenges, but we are confident of getting that cleared in this quarter. That's a major chunk of it. Shreehari Shreenivas: Okay. But can you quantify the amount of receivables that are due for more than nine months? Six months I can tell you, it is about Rs. 14 crore and below six months is about Rs. 12.3 crore. Below is Rs. 14 crore and above is Rs. 12 crore. Shree

So, I just had some questions that I wanted to ask. One is that the entire telecom sector is in some kind of stress, firstly, what is the percentage of telecom to the entire thing? And what are we doing to lower this percentage? Jayant Dwarkanath: See, we have taken some steps to invest in be BFSI, we have seen some very good traction coming from there, we have added one large insurance company and India’s second largest private bank we have acquired. And going forward, the pipeline also in the BFSI sector is looking good. So, we are cognizant of the fact about the vertical being there. So, we

Utsav Shrivastav

Okay. On the managed services contract, have we now fully rolled it out across all theirH.. Yes, all the lines of businesses, which I mentioned, customer on-boarding, customer notifications and bill delivery, all these things have been rolled out. As far as advertisement revenue is concerned, we are running a pilot now and we have also tied up with a whole lot of advertising agencies and others to get us the advertisements, including coupon companies. So, except for that everything else is on track. So, we are fully on track. Jayant Dwarkanath: Last couple of months those of you who have been

Yes. Mr. Srinivas, why don’t you visit us and understand our business more in depth, because you have several questions, I would want you to understand what technology we do, what business problem we solve, what is our platform all about. Shreehari Shreenivas: That’s fine Mr. Shastri, I can manage with the information at hand. But I just have one question actually, which just needs some articulation. So, if you don't mind, I would like to just share some data with you first. So, during the last conference call, you mentioned that Q4 FY19 should be as good as Q4 FY18, if not better. In November

Shyam G

You have to understand that we have never, as far as that is concerned, we never have misled our investors. Being in business you are always positive and if we don't give positive outlook you guys say that you don't give any outlook, how should shareholders look at it. My thing is that I don't remember having said anything about Rs. 200 crore. The pipeline definitely would be material, there are so many businesses exigencies, so many things which happen. And to our best of our things, we have always been very transparent and fair with our investors. And we will continue to do that, Mr. Sriniva

Speaking time

CK Shastri

Deep Prasad

Moderator

Utsav Shrivastav

Jaganathan T

Shyam G

Anisha Shastri

H.M. Nayak

Jayant Dwarkanath

Opening remarks

CK Shastri

We will begin the call with brief opening remarks from the management, following which we will have an interactive question-and-answer session. Before we begin, I would like to point that some statements made in this call may be forward-looking in nature and a disclaimer to this effect has been included in the earnings announcement shared to you earlier. I would now like to invite Mr. Shastri to make his opening remarks. Over to you, sir. Good morning, everyone. Thank you very much for joining the call, really appreciate it. I will straight go to the numbers, the performance during the year brings out the strength in our business model, despite having a very tough last two years, we have turned it around and the revenues for the year are at Rs. 58 crore as compared to Rs. 55 crore last year, and an EBITDA of Rs. 12.72 crore as compared to Rs. 8.17 crore last year. The Q4 revenue stood at Rs. 16.58 crore and an EBITDA of Rs. 1.70 crore. In the light of these numbers, the Board has recom

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