Saksoft Limited has informed the Exchange regarding Investor Presentation in connection with the Unaudited Consolidated and Standalone Financial Results for quarter and half year ended 30th September ...
SAKSOFT LIMITED
INVESTOR PRESENTATION – NOVEMBER 2019
info@saksoft.com | www.saksoft.com
Safe Harbor
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Saksoft Limited (the “Company”), have been prepared solely for
information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied
on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering
document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation
or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this
Presentation. 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
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and
collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks,
uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of
the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement
its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows,
the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements
could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking
information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the
Company and the Company is not responsible for such third party statements and projections.
www.saksoft.com
2
Q2 & H1 FY20 Financial Highlights
www.saksoft.com
3
Continued Growth Momentum
Revenue
3.9%
171.70
178.39
EBIDTA
14.8%
18.1%
27.1%
32.33
25.44
PAT*
10.1%
10.8%
11.3%
17.32
19.27
H1FY19
H1FY20
H1FY19
H1FY20
H1FY19
H1FY20
-2.2%
89.15
87.19
15.6%
18.5%
16.3%
16.16
13.90
10.7%
11.2%
1.9%
9.58
9.76
Q2FY19
Q2FY20
Q2FY19
Q2FY20
Q2FY19
Q2FY20
www.saksoft.com
*PAT is before Minority interest
4
Highlights for Q2 & H1FY20
Revenue ✓ The Company recorded Revenue of Rs. 87.19 Crs during Q2FY20, as against Rs. 89.15 Crs in Q2FY19. The muted performance was on
the back of sluggish demand in UK market
✓ The Company recorded Revenue of Rs. 178.39 Crs during H1FY20, as against Rs. 171.70 Crs in H1FY19 a growth of 3.9%
EBITDA ✓ EBITDA for the quarter stood at Rs. 16.16 Crs higher by 16.3% as compared to Q2FY19 of Rs. 13.90 Crs ✓ EBIDTA margins expanded by 294 bps to 18.5% as compared to Q2FY19 (this includes 141 bps on account of Ind AS 116) was on the back of
increase in offshore revenues and better quality of revenues due to the dedicated team model
✓ EBIDTA for H1FY20 stood at Rs. 32.33 Crs as compared to Rs. 25.44 Crs for H1FY19, a growth of 27.1%. ✓ The EBITDA for H1FY20 is higher by Rs. 2.48 Crs on account of adoption of Ind AS 116 resulting in an impact of 1.39%. ✓ Despite the challenging environment, the Margins of the Company remained intact as a result of strengthening of niche capabilities
PAT ✓ Net profit after tax (before minority interest) for Q2FY20 stood at Rs. 9.76 with margin growth of 45 bps to 11.2% ✓ Net profit after tax (before minority interest) for H1FY20 stood at Rs. 19.27 Crs as compared to Rs. 17.32 Crs for H1FY19, a growth of 11.3% ✓ The Company recorded a PAT margin (before minority interest) of 10.8% higher by 71 bps as compared to H1FY19
✓ Declared Interim Dividend of Rs. 2/-per share (20%) on equity share of Rs. 10/- each for the financial year 2019-20 ✓ During the quarter, the Company acquired last tranche of 20% of the equity share capital in DreamOrbit Softech Private Limited, a subsidiary
of the Company. With this, Dreamorbit has become a wholly owned subsidiary of Saksoft Limited
www.saksoft.com
5
Operating & Customer Metrics
Revenue by Geography
H1FY20
FY19
APAC & Others
19%
APAC & Others
15%
26%
Europe
55%
Americas
Europe
30%
55%
Americas
CUSTOMER METRICS
H1FY20
FY19
(a) No of clients/customers per Million Dollar **
Revenue more than 1 Million Dollar
Revenue more than 0.5 Million Dollar
(b) Client's Contribution to Revenue
Revenue from Top 5
Revenue from Top 10
Revenue from Top 20
6
7
46%
55%
64%
6
7
45%
52%
60%
Revenue Mix
H1FY20
FY19
HEADCOUNT METRICS
H1FY20
FY19
Offsite
51%
49%
Onsite
Offsite
50%
50%
Onsite
(a) Headcount & Utilization
Total Employee Count
Technical
Support
(b) Utilization-IT Services
Excluding trainees
1,205
1,168
1,068
1,031
137
137
87%
84%
www.saksoft.com
** The numbers are based on the Annualized figures
6
Revenue By Verticals
H1FY20
FY19
16%
29%
14%
11%
10%
20%
23%
31%
9%
10%
16%
11%
Fintech Telecom Transportation & Logistics
Public Sector Retail & Health Care Others
Fintech Telecom Transportation & Logistics
Public Sector Retail & Health Care Others
www.saksoft.com
7
Q2 & H1FY20 Income Statement
Particulars (in Rs. Crs)
Q2FY20
Q2FY19
Y-o-Y (%)
Q1FY20
Q-o-Q (%)
H1FY20
H1FY19
Y-o-Y (%)
Total Revenue
Employee Expenses
Support/ Third Party charges
Other Expenses
EBITDA
EBITDA(%)
Other Income
Depreciation
EBIT
EBIT(%)
Finance Cost
Profit Before Tax
Tax
Profit After Tax*
Profit After Tax*(%)
EPS
87.19
44.60
20.57
5.86
16.16
89.15
40.91
23.45
10.89
13.90
-2.2%
16.3%
91.19
45.59
22.70
6.73
16.17
18.5%
15.6%
294bps
17.7%
0.49
1.84
14.81
17.0%
1.35
13.46
3.70
9.76
11.2%
9.61
2.13
0.84
15.19
17.0%
1.19
14.00
4.42
9.58
10.7%
9.38
-2.5%
-3.9%
1.9%
45bps
0.63
1.84
14.96
16.4%
1.37
13.59
4.08
9.51
10.4%
9.57
-4.4%
178.39
171.70
3.9%
90.19
43.28
12.59
32.33
80.46
45.38
20.42
25.44
27.1%
18.1%
14.8%
331bps
1.12
3.67
29.78
16.7%
2.73
27.05
7.78
19.27
10.8%
19.18
3.33
1.65
27.12
15.8%
2.43
24.69
7.37
17.32
10.1%
16.38
9.8%
9.6%
11.3%
71bps
-0.1%
80bps
-1.0%
-1.0%
2.6%
77bps
www.saksoft.com
*PAT is before Minority interest
8
Consolidated Balance Sheet
Particulars (in Rs. Crs.)
Sep-19
Mar-19
Particulars (in Rs. Crs.)
Sep-19
Mar-19
Assets
Non-current assets
Property, Plant and Equipment
Goodwill on consolidation
Other Intangible assets
Financial Assets
(i) Other Financial Assets
Deferred Tax Assets (Net)
Other Non-Current Assets
Current assets
Financial Assets
(i) Trade receivables
(ii) Cash and cash equivalents
(iii) Loans
(iv) Other Financial Assets
Current Tax Assets (Net)
Other Current Assets
TOTAL - ASSETS
150.90
145.76
10.42
2.14
133.63
137.06
2.55
2.93
2.53
1.76
0.01
2.02
1.56
0.05
129.49
132.74
60.60
46.09
0.22
7.88
1.16
64.95
40.06
0.06
6.49
1.38
13.54
19.80
280.39
278.49
Equity & Liabilities
Equity
Equity Share capital
Other equity
Non-controlling interest
LIABILITIES
Non-current liabilities
Financial Liabilities
(i) Borrowings
(ii) Other Financial Liabilities
Provisions
Current liabilities
Financial Liabilities
(i) Borrowings
(ii) Trade Payables
(iii) Other Financial Liabilities
Other Current Liabilities
Provisions
183.18
175.34
9.94
9.94
173.24
165.39
--
4.82
42.40
35.28
30.15
8.50
3.75
54.81
6.47
17.29
5.66
23.84
1.55
31.60
0.69
2.99
63.06
7.39
24.32
3.91
26.17
1.27
TOTAL - EQUITY AND LIABILITIES
280.39
278.49
www.saksoft.com
9
Cash Flow Analysis
Particulars (in Rs. Crs.)
Operating profit before working capital changes
Changes in working capital
Cash generated from operations
Direct taxes paid (net of refund)
Net Cash from Operating Activities
Net Cash from Investing Activities
Net Cash from Financing Activities
Net Change in cash and cash equivalents
Sep-19
33.07
0.86
33.93
(7.77)
26.16
(10.48)
(9.66)
6.02
Sep-18
28.13
(11.02)
17.11
(6.34)
10.77
(8.81)
(7.63)
(5.67)
www.saksoft.com
10
Sharing Profits…Consistently
25%
Final Dividend
Interim Dividend
30%
30%
FY15
FY16
Particulars (in Rs)
FY15
FY17
FY16
35%
FY18
40%
30%
10%
FY19
20%
H1FY20
FY17
FY18
FY19
H1FY20
Consolidated Book Value / Share
106.84
124.08
119.56
148.87
176.35
184.24
Consolidated Earnings / Share
Dividend / Share
17.12
2.50
18.82
3.00
17.30
3.00
21.98
3.50
36.66
19.18
4.00
2.00 (interim)
www.saksoft.com
11
About Saksoft
www.saksoft.com
12
Saksoft Group
1000+ Employees
100+ Customers
14 Strategic Locations
$50 Million Revenues
20 Years Track-record
Vertical focus
Digital Transformation Services
www.saksoft.com
Innovation
Customer focus
Openness
Respect
Enterprising
Fintech
Transportation & Logistics
Public Sector
Retail eCommerce
Telecom
Healthcare
Advanced Analytics
IoT Solutions
Logistics & Supply Chain Solutions
RPA
Cloud Enablement
Testing CoE
Telehealth
13
What do we offer?
Powered by Digital Intelligence Framework
Agile / Waterfall / Hybrid Delivery Models
Value Innovation Programs
Center of Excellence
Application Services
Application Development| AI & Automation | Mobile Application Development | Internet of Things (IoT)
Cost & Operations Efficiency
Information Management Services Enterprise Data Strategy | BI & Analytics | Big Data | Data Science & Predictive Modeling
Value Chain Optimization
Testing Services
IoT |Performance | Functional | SOA Independent Testing | Accessibility
Managed Infrastructure Services
Managed Services |Cloud Enablement & Management | IT Helpdesk |Network & Security
Faster Time to Market
Training & Support
Digital Transformation Partner for FinTech, Retail, Transport & Logistics and Telecom industries, healthcare as well as, Government & Public Sector Organizations
www.saksoft.com
14
Application Services
Consulting
Development & Customization
Migration
Management & Maintenance
Mobile Apps. Development
Android, iOS, Xamarin, Mobile Websites, HTML5 / JS based apps
400+ Member App Services Team
Frameworks & Solution Accelerators
Artificial Intelligence and Automation
Machine Learning solutions Natural Language Processing Solutions Robotic Process Automation
Logistics & Supply chain Solutions
J2EE, .NET, Share point Portal Applications CMS – Drupal, WordPress
Internet of Things
Application Development
www.saksoft.com
Offshore Development Centres
Industry Specific Solutions
Two Decades in ADM
Application Support & Maintenance
15
Application Services - Case Study
▪ Fintech – Built a cardless cash system enabling consumers, businesses and governments to instantly deliver cash to
Recipients via their mobile devices
▪ Logistics – Built an Real-Time online Marketplace for transportation. Brokers, Shippers and Carriers would be able to see
load/capacity, negotiate and tender shipments.
▪ Manufacturing – IoT Application for monitoring of machines, remote access using custom protocols, CRM module to
manage problems and incidents along with a chat system, mobile application, reporting and statistics.
▪ Fintech – Built Loyalty Management Solutions for the institution
▪ Healthcare - Designed a secure mobile platform that provides consumers with the necessary tools for aggregating,
organizing and sharing their medical health records. Built a framework for downloading data from the Electronic Medical
Records using FHIR.
www.saksoft.com
16
Case Studies : Application Services
Online Reservation System for a Leading port Operator
RPA Solution to leading provider of Global Logistics solutions
Blockchain Solution For A Marketplace
IoT solution to provide a single platform for access, monitoring and reporting
Click Here for Full Details
Click Here for Full Details
Click Here for Full Details
Click Here for Full Details
Server Migration to increase scalability, system efficiency and reduce maintenance cost
Click Here for Full Details
www.saksoft.com
Helped Transport Network Company to enhance their application with advanced features & increased customer satisfaction Click Here for Full Details
Application development for A Global Telecom Giant
Click Here for Full Details
Helped Client optimize their IT Hardware & Software infrastructure & solve compliance issues Click Here for Full Details
17
Information Management Services
Assessment
Gap Analysis
Recommendation & Development
Support
Enterprise Data Strategy
Multi-Dimensional Data modelling Extraction, Transformation & Loading, ODS and Data Marts Data Quality Management Data Migration
250+ Certified BI Experts
Innovation Labs
Business Intelligence & Analytics
Publish Insights Real time and Aggregated data in the form of CUBES Configurable dashboards and Ad-hoc Query Builder & Reporting
Data Visualization
Data Governance and Security
Big Data
Massive Parallel Processing Realtime data streaming In-memory Solutions Machine Learning Algorithms Data flow tools
Data Science & Predictive Modeling
Quantitative and Behavioural Modelling Predictive, Prescriptive and Cognitive Analytics Machine Learning, Forecasting & Optimization
Industry Specific Solutions
20+ years of Experience in IM
www.saksoft.com
18
Information Management Services - Case Study
▪ Healthcare – Development of Analytics Platform for PHM and transition to Value-Based Care using Advanced Population
health management (Prediction and Machine Learning), Post discharge patient communication (Artificial Intelligence)
and Value Based Care Analytics (Performance and Regulatory reporting)
▪ Public Sector - Designed data warehouse & implemented SAP BO. Due to customized analytics and reporting, now the
client is able to respond faster during emergencies.
▪ Public Sector – Providing assistance with the SAP Predictive Analytics tool for modelling and predictive visualisation to
understand the movements of the organized crime groups
▪ Healthcare – Patient data was collected from around the UK from numerous NHS Trusts, Primary Heath Care Trusts and
local Heath Authorities. Using Predictive Analytics is used to identify early signs and trends of bowl cancer.
▪ Telecom: Supply Chain DW – Supply Chain Data Warehousing and Reporting helps the Telco with multi-location
warehouse to make informed supply chain decisions
www.saksoft.com
19
Case Studies : Information Management Services
Managing Inventory through Business Intelligence
Helps Revolutionize business through Data Science
Click Here for Full Details
Click Here for Full Details
Helped a UK county to build a report generating system for Centralized data management, visibility & effective utilization Click Here for Full Details
Offers customized solutions for increased employee productivity & operational efficiency Click Here for Full Details
Migrated & Integrated the legacy systems to the new Housing Management system for better analytics and report generation Click Here for Full Details
www.saksoft.com
Empower R&D through efficient Data Management
Click Here for Full Details
Helped a banking Client to make sense out of data and provide better service to a large number of Customers Click Here for Full Details
Implemented a data warehouse and BI system that reduced the number of reports generated from 36 to 1 and saved upto £1.4M of operational cost Click Here for Full Details
20
Testing Services
Managed Services
Mobile Test Lab
Domain Specific Frameworks
Performance Engineering
Test Planning Test Cases & Scenario Writing Test execution, Test Matrix development Release Notes Development
Functional, Usability, Compatibility Test Domain / Workflow based testing Analytical & document review
Database & Platform testing Security testing SOA and web services testing Unit and API testing Mobile testing
Functional Test Automation Performance test automation Security Test automation Build Automation
Test Management
Core Testing
Technical Testing
Test Automation
www.saksoft.com
500,000+ test cases
2 Million+ hours of Testing Experience
200+ Successful Clients
14+ Certified Ethical Hackers
250+ QA Experts
25+ Architects
110+ Device Inventory
100K+ releases
21
21
Testing Services - Case Study
▪ Retail – Developed Automation Suite in Selenium to ensure that all retail application works with multiple systems (POS,
Carriers, Payment).
▪ Telecom – Saksoft prepared a detail test cases for their product VoiceConnect UI portal as well as Web methods testing.
▪ Education – Saksoft conducted Penetration testing to identify the loopholes & vulnerabilities to reduce the attack risk
▪ ISV – Streamlined the product release process effectively through automation testing
▪ Media – Saksoft performed the Mobile App testing
▪ Fintech – Saksoft ensured security through rigorous security and performance testing
www.saksoft.com
22
Case Studies : Testing Services
Ensure Security through penetration testing
Helped technology company to automate IOS & Android based applications effectively
360logica executed a comprehensive IoT testing of a Client’s mobile application
Offers a complete testing solution for Mobile Apps and Cloud Services
Click Here for Full Details
Click Here for Full Details
Click Here for Full Details
Click Here for Full Details
360logica offers better follow- up care for patients through insightful data
Click Here for Full Details
Ensure high performance through Stress Testing helped eliminate specific weaknesses and vulnerabilities Click Here for Full Details
Testing solution for one of the leading game-based company ensuring a seamless gaming experience. Click Here for Full Details
360logica helped an organization to manage their blog page efficiently at peak business hours Click Here for Full Details
www.saksoft.com
23
Managed Infrastructure Services
Consulting Services
Deployment
Migration
Managed Services
Virtualization (vShepre, Solaris Zones, VDI, Citrix) DB Management (SQL Server, MySQL, Oracle) Shared Platforms (Cloud / Storage / Backup)
Strategic Partnership
Round the clock Support
Managed Services
Cloud Enablement & Management
Multi-Cloud Enterprise Cloud Cloud Automation Cloud Migration
Versatile host of technologies
Scalable training model for infrastructure
Global Delivery Model
Automation
IT Helpdesk
Level 1/2/3 Support
Network & Security
Security & Network (Cisco, Juniper, LogRythm, F5, Tipping point, Netscaler)
www.saksoft.com
24
Managed Infrastructure Services - Case Study
▪ Fintech - Designed & initiated Cloud Optimization involving Database & Application migration from MySQL to AWS
Aurora Database.
▪ Fintech – Migration of their entire infrastructure to Amazon Cloud Services.
▪ Logistics - We are providing Cloud Migration Service of Firewall. We will analyse, plan , design, build, configure and
migrate their On-premise firewall solution to MS Azure firewall on Cloud.
www.saksoft.com
25
Our Focus Verticals
Fintech
Transportation & Logistics
Our Major SIX Vertical Focus
Healthcare
Public Sector
Retail eCommerce
Telecom
▪ Mobile Cash
▪ IoT Solutions
▪ Telehealth
▪ Smart cities - Machine
▪ Social Listening
▪ SharePoint
Disbursement Solution
▪ API Integration
▪ Mobile/Web Development
▪ Big data analytics
▪ Credit Scoring, Fraud prevention &Risk Assessment, Anticipate / handle disruptions etc.
▪ Freight Management
▪ EHR integration
Software
▪ Warehouse
Management
▪ Supply Chain Management
▪ EDI Integration
▪ Logistics Dashboard
▪ Imaging analytics
▪ Integrated health monitoring via wearables
▪ HL7/FHIR enabled provider apps
learning & facial recognition from IoT data feeds
▪ Predictive Analytics & BI to provide better healthcare, decrease crime rates, and improve citizen’s life
▪ People identity management
(Micro Influencer)
development
▪ Customer 360
▪ Customer Journey
Tracking
▪ eCommerce Portal Development
▪ Advanced analytics to reduce customer churn
▪ Oracle Support
▪ Testing CoE
Digital Transformation Services
Analytics Solutions
IoT &Mobility Solutions
Technology Training
Application Services
Cloud Services
Testing Services
Managed Services
Professional Services
www.saksoft.com
26
Awards
Awarded for its Excellence in Industry Application – B2B category at Big Data & Analytics Summit 2017
Competitive Landscape: Data and Analytics Service Providers Report
Awarded for its best practices in data ware housing at Big Data & Analytics Summit 2016
Company of the year 2015 for IM Consulting by Silicon India
Deloitte Technology Fast 50
Winner of Red Herring’s Top 100 Asia award 2014
B2B Excellence
Data and Analytics
Data ware housing
Company of the year
Deloitte Fast 50
Red Herring’s Top 100
Jun 2017
Jan 2017
Jun 2016
Aug 2015
Nov 2014
Jul 2014
Jul 2017
Jun 2017
Jul 2016
Nov 2015
Jul 2015
Sep 2014
IoT Testing
Deloitte Fast 500™
Rising Star
BI and Analytics
Deloitte Fast 50
Grant Thornton's
Internet of Things (IoT) Testing Market - Global Forecast to 2021 Report
Deloitte Technology Fast 500™ Asia Pacific 2016, a ranking of the 500 fastest growing technology companies in Asia Pacific
Rising Star for Size & Growth in Employee and Revenue by the International Association of Outsourcing Professionals® (IAOP®)
Market Guide for BI and Analytics Service Providers
Deloitte Technology Fast 50
Grant Thornton's ‘The UK’s top Indian companies’ List
www.saksoft.com
27
Management Team
www.saksoft.com
28
Board of Directors
Aditya Krishna, the Founder, Chairman and the
Managing Director of the Saksoft Group, spearheads
Saksoft’s growth across domains and geographies.
He brings with him over 30 years of experience in
the banking and financial services industry.
After a long career with Chase Manhattan Bank in
New York and later with Citibank, New York, he
relocated to India in 1990 as part of a four-member
team to establish Citibank’s credit card business in
the country and was also instrumental in developing
the in-house software to run credit card operations.
Aditya founded Saksoft in 1999 and drives the
business development efforts.
Aditya Krishna CMD – Saksoft
www.saksoft.com
Amitava Mukherjee, Independent Non-Executive Director
Amitava Mukherjee has over 33 years of rich and varied experience in the corporate sector. Amit spent a large part of his investment banking career at Lazards, a global Wall Street Firm, where he was a managing director and member of the executive management board.
Ajit Thomas, Independent Non-Executive Director
Ajit Thomas is the Chairman of A.V. Thomas Group of Companies, an Agri Business Enterprise founded in 1925, with interests in plantations, tea retail, spice processing, natural extracts, and leather goods.
VVR Babu, Independent Non-Executive Director Mr. Babu has Master of Science, Applied Mathematics and Operations Research from National Institute of Technology Warangal, Master of Philosophy, Computer Science from Central University of Hyderabad, Executive Development Program, Business Administration and Management from Harvard Business School.
Kanika Krishna, Non-Executive Director Kanika Krishna has an MBA in Financial Management from Pace University, New York, USA. Prior to this she has completed the Master’s program in International Business from the Manchester Business School, UK. She is also an alumnus of Stella Maris College, Chennai where she completed her Bachelor of commerce degree.
29
Transformation Drivers at Saksoft
www.saksoft.com
30
Transformation Drivers
Aditya Krishna Chairman & Managing Director
Over 25 years of experience in Banking & Financial Sector. Part of a 4 member team to establish Citibank’s Credit Card business and developing in-house software to run credit card operations in the country.
Dhiraj Mangla Executive Vice President
Over 18 years of experience in IT industry and has been successful in delivering a large portfolio of projects. He has extensive experience working with clients across multiple sectors and in different geographies
Niraj Kumar Ganeriwal Chief Financial Officer
Chartered Accountant with over 15 years of experience. Has also worked with in the pharma industry, as Finance Controller and has gained expertise in varied fields of finance and was responsible for corporate planning and strategy.
Gopakumar Kavunkal SVP & Global Head - IM
Over 2 decades of experience in global outsourcing business including Sales, Strategic Business & Technology Planning, Global Sourcing, Process Transformation. Held leadership roles at Quadrant 4 and Mascon Global both in India and abroad.
Negotiations & Business
Contract
Bhaskar Narayanan VP – APAC Sales
Over 18 years of experience in Business Development, Account Management and Operations Management. He has worked across various roles in the Engineering, and IT Services industries. A key member of the marketing team helping Saksoft move into the next phase as a digital transformation partner.
www.saksoft.com
31
Transformation Drivers
Sanchit Jain CEO – DreamOrbit
and Communication in Electronics Bachelor’s degree Engineering from the Indian Institute of Technology, Roorkee. Before co-founding DreamOrbit, Sanchit worked with Tata Consultancy Services, Aditi Technologies and CircleSource.
Abhishek Porwal CTO, DreamOrbit
Heads the Center of Excellence of Agile at DreamOrbit. His strength is developing strategy, planning and execution of expertise led Delivery Excellence. He plays a significant role in developing and scaling the value.
Vivek Srivastav Director – Testing Services
Over 16 years of experience in Quality Engineering. He brings hands on experience in building automation frameworks, QA transformations and establishing a Testing Centre of Excellence (TCoE).
Jonathan Eeley Chief Commercial Officer, Acuma
A BI specialist who has consistently delivered strategic solutions to customers in the UK. With skills in almost all products and platforms in the Business Intelligence area, Jonathan has Saksoft’s Information Distribution Platform.
also architected acusend,
Swaraj Dash Vice President, Sales- US geography
Swaraj Dash heads the US Solution Sales at Saksoft. Swaraj has 16+ years of Sales and Business Development experience in markets like – USA, UK and Benelux region. Prior to joining Saksoft, Swaraj worked at Cognizant and Virtusa in both US and Europe in a Sales and Business Development capacity.
Avantika Krishna Accounts Director Avantika has over 10 years of experience in Business Development, Account Management and Human Resources Management. She holds a Master degree in HR from Kings College, London & MBA (Marketing & Management) from Fordham University, New York.
www.saksoft.com
32
Creating value through acquisitions
www.saksoft.com
33
History of Acquisitions
Saksoft acquired companies with Complementary Expertise, helping Scale Capabilities Faster, Widening the Competence Portfolio and Strengthening our Corporate Brand.
Company Acquired
Geography / Niche Area
Rationale
UK Public Sector
Noida Testing Focused
IM focused company. Renowned name in the Public Sector.
Independent Testing Company. Possesses ready-made frameworks and accelerators for target industry verticals with in-house state-of-the-art mobile device lab.
Bangalore Blockchain, IoT & Logistics Focused
Specialized in IoT, adding enhanced capability in the application development space. Strong presence in the Transportation and Logistics industry, adding a new vertical to the group. Target market continues to be the US.
Pune Healthcare & Drupal
A healthcare solutions provider in the US. The healthcare sector is fast growing with technologies getting more advanced when coupled with Analytics. The Company has ready- made frameworks and accelerators for the healthcare industry.
String of Pearls Strategy
Building Capabilities
Digital Focused Companies
Small Companies with Growth Potential
www.saksoft.com
34
Our DreamOrbit Acquisition
Artificial Intelligence
We create chatbots for customers, which are AI- through machine enabled language.
communicate
and
Robotics Process Automation A visit to a travel aggregator site provides hotel rates, ticket prices and room availability, among others, gathered from multiple websites. This robotic process automation allows data collection from different websites and corresponding presentation with the click of a mouse.
Blockchain Technology
Cloud
This revolutionary concept is essentially a ledger on which one may participate to write but not edit. This enables individuals to create records that cannot be tampered. Saksoft leverages Blockchain technology to promote clarity along the order-to-delivery process for the Logistics industry.
We work with Amazon Web Services and MS Azure and leading Cloud providers to develop and deploy Cloud-based software that is flexible and secure. The solutions consume less space and bandwidth coupled with high data integrity.
Internet of Things
The network of physical devices, vehicles, home appliances and other items are embedded with and electronics, connectivity, which enables the exchange of data
software,
actuators
sensors,
Why DreamOrbit
in December 2016. Saksoft acquired DreamOrbit DreamOrbit was included in the Deloitte Technology Fast 50 list since 2014. The acquired company had grown to a critical mass (~US$5 million) within a few years and needed to double its growth rate. Saksoft provided the acquired company with management larger on-field sales force and financial bandwidth, support. Saksoft quadruped the dedicated US sales team for DreamOrbit, winning new accounts; its sales teams in London and Singapore helped DreamOrbit bag accounts in these uncharted territories.
Key Highlights Our recent acquisition Dream Orbit focuses on a product engineering company that develops software solutions. We act as the front-end to understand customer needs and our solutions extend across the value chain: from development and deployment to providing support and maintenance. The acquisition has enabled us build IoT capabilities in the logistics sector and provide innovative solutions for customers.
www.saksoft.com
35
Our Faichi Acquisition
Why Faichi Faichi Solutions LLC, a Healthcare-focused start-up providing outsourced product engineering, open source development and Drupal development consulting services, was founded in 2011 in Sunnyvale, California. Effective January 2018, Faichi Solutions LLC became a subsidiary of Saksoft. Within a few years of commencing operations, Faichi Solutions specialized in the development and integration of enterprise products and web applications. The Company’s competence is reflected in that it released 40 products and 70 web cum mobile apps in collaboration with customers. Its primary competence in healthcare technologies encompasses the value chain - from service providers to life science organizations. Its accelerator and healthcare solutions empower customers in expediting innovative product development. Faichi offers a wide array of healthcare technology services including product development, integration, meaningful use compliance, BI/analytics, chronic care management and consumer health.
Key Highlights
Healthcare is a significant industry in the US and the country’s per capita healthcare spending of around US$10,724 is the highest in the world. The sector is emerging as an increasingly attractive space from the perspective of technological services and product engineering. Saksoft’s acquisition of Faichi will widen its US footprint, leveraging the acquired company’s deep understanding of the American healthcare ecosystem (patients, service providers and hospitals).
Case Study
FHIR
Telehealth
tools
Designed a secure mobile platform that provides consumers with the necessary aggregating, organizing and sharing their medical health records. Built a framework for downloading data from the Electronic Medical Records using FHIR.
for
For a healthcare provider, Faichi designed a workflow between the Insurance & healthcare platforms. Leveraging Connect MIRTH developed RESTful API’s on the telehealth platform.
www.saksoft.com
36
Historical Financial Highlights
www.saksoft.com
37
Historical Trend
(in Rs. Crores)
Consolidated Turnover
Consolidated EBIDTA
Consolidated PAT*
358
59
38
+12%
260
286
231
244
+23%
40
36
33
+22%
22
20
24
26
17
FY15
FY16
FY17
FY18
FY19
FY15
FY16
FY17
FY18
FY19
FY15
FY16
FY17
FY18
FY19
www.saksoft.com
*PAT is before minority interest
38
Historical Consolidated Income Statement
Particulars (in Rs. Crs)
Total Revenue
Employee Expenses
Support/ Third Party charges
Other Expenses
EBITDA
EBITDA(%)
Other Income
Depreciation
EBIT
EBIT(%)
Finance Cost
Profit Before Tax
Profit Before Tax(%)
Tax
Profit After Tax*
Profit After Tax(%)
EPS
www.saksoft.com
FY15
231.40
96.69
70.42
38.20
26.09
11.3%
2.12
1.30
26.91
11.6%
4.21
22.70
9.8%
5.33
17.37
7.5%
17.12
FY16
243.73
112.38
60.14
35.02
36.19
14.8%
2.16
1.02
37.33
15.3%
4.32
33.01
13.5%
11.23
21.77
8.9%
18.82
FY17
259.50
120.75
70.38
35.46
32.91
12.7%
1.93
1.31
33.53
12.9%
4.65
28.88
11.1%
8.79
20.09
7.7%
17.30
FY18
285.87
135.41
75.26
35.60
39.60
13.9%
2.30
2.87
39.03
13.6%
5.21
33.82
11.8%
9.41
24.41
8.5%
21.98
FY19
358.05
165.42
91.41
42.06
59.16
16.5%
2.18
4.27
57.07
15.9%
4.80
52.27
14.6%
14.06
38.21
10.7%
36.66
*PAT is before minority interest
39
Consolidated Balance Sheet
Particulars (in Rs. Crs.)
Mar-19 Mar-18
Particulars (in Rs. Crs.)
Mar-19 Mar-18
Assets
Non-current assets
Property, Plant and Equipment
Goodwill on consolidation
Other Intangible assets
Financial Assets
(i) Loans
(ii) Others
Deferred Tax Assets (Net)
Other Non-Current Assets
Current assets
Financial Assets
(i) Trade receivables
(ii) Cash and cash equivalents
(iii) Loans
(iv) Other Financial Assets
Current Tax Assets (Net)
Other Current Assets
TOTAL - ASSETS
145.76
152.86
2.14
2.60
137.06
142.11
2.93
4.64
0.00
2.02
1.56
0.05
0.00
2.39
1.09
0.02
Equity & Liabilities
Equity
Equity Share capital
Other equity
Non-controlling interest
LIABILITIES
Non-current liabilities
Financial Liabilities
(i) Borrowings
(ii) Other Financial Liabilities
132.74
110.02
Provisions
64.95
40.06
0.06
6.49
1.38
58.43
30.02
0.20
7.46
0.23
19.80
13.68
278.49
262.89
Current liabilities
Financial Liabilities
(i) Borrowings
(ii) Trade Payables
(iii) Other Financial Liabilities
Other Current Liabilities
Provisions
175.34
148.02
9.94
9.94
165.39
138.08
4.82
6.09
35.28
46.78
31.60
38.05
0.69
2.99
6.09
2.64
63.06
62.00
7.39
24.32
3.91
26.17
1.27
4.42
28.63
7.63
20.32
1.00
www.saksoft.com
40
TOTAL - EQUITY AND LIABILITIES
278.49
262.89
Key Ratios
Return on Capital Employed (%)
Return on Equity (%)
Debt : Equity Ratio (x)
23
19
19.9
19.7
26.7
15.1
14.3
13.7
14.7
0.19
20.8
0.27
0.25
0.33
0.30
FY15
FY16
FY17
FY18
FY19
FY15
FY16
FY17
FY18
FY19
FY15
FY16
FY17
FY18
FY19
www.saksoft.com
41
Strategy for growth
www.saksoft.com
42
Our Focused Strategy for Growth
Focus on Emerging sectors
Addressing the sweep of help digitisation clients enhance operational efficiency
to
Inch-wide and mile- deep strategy
Addressing target markets with services that differentiate from competition and emerging as one of the and fastest-growing most profitable across our verticals
Being Nimble
Building A Strong Team
We are a mid-tier few company with decision making layers, enhancing our agility
building
By performance teams sustainable growth
focused
high
on
Consolidating Front-End
Consolidating marketing front-end to reach more clients, accounts, trades and systems with the squeeze to objective from growth our at minimal platforms costs
String of Pearls’ strategy
Engage business in complementing M&As that constitute a ‘string of pearls’ strategy that our enhances competence immediately following without acquisition corresponding gestation
Value over volume
unoccupied Address territories represented by projects with higher profitability
www.saksoft.com
43
Conversation with the Technology Drivers at Saksoft
FINTECH
We developed a solution called ‘Card-less ATM withdrawal’, which allows someone to transfer a sum of money by generating a four-digit PIN and the other party to withdraw the same amount without using an ATM card
TRANSPORATION & LOGISTICS
We are working with more than 35 premier American Logistics companies. With over 8 years of experience and strengthening our understanding of freight and fleet management, the sector is growing at a fast clip of 20% + annually
RETAIL/ECOMMERCE We have bagged prestigious clients, including a large US outdoor equipment e-tailer engaged in the sale of mountaineering and sports gear in addition to a high-fashion e-commerce player
HEALTHCARE
TELECOM
PUBLIC SECTOR
Via Faichi, we are working on a project called ‘Create Aware’, where we provide wearable devices in exchange for collecting health statistics that are transmitted to our servers that represents adequate round- the-clock data to medical practitioners and R&D labs in treating specific conditions or develop new therapies
One of our key customers in this space is based out of the Europe. Saksoft has been its largest independent vendor for ten years, strengthening their business and revenues
We are working with Central Governments, County and Health department in the UK. By enabling a digital transformation programs, we are improving citizen’s life. Through predictive analytics we are reducing crime rates.
www.saksoft.com
44
Contact us
Company :
Investor Relations Advisors :
CIN: L72200TN1999PLC054429
CIN: U74140MH2010PTC204285
Mr. Niraj Kumar Ganeriwal Chief Financial Officer
niraj.ganeriwal@saksoft.com
Mr. Sagar Shroff / Ms. Ami Parekh
sagar.shroff@sgapl.net / ami.parekh@sgapl.net +91 98205 19303 / +91 80824 66052
www.saksoft.com
www.sgapl.net
www.saksoft.com
45
Thank you
www.saksoft.com | info@saksoft.com
46