R Systems International Limited has informed the Exchange regarding Investor Presentation
R SYSTEMS INTERNATIONAL LIMITED Corporate Identity Number : L74899DL1993PLC053579 [CMMI Level 5, PCMM Level 5, ISO 9001:2015 & ISO 27001:2013 Company] C-40, Sector-59, NOIDA, Distt. Gautam Budh Nagar, U.P., India – 201 307
Phones: +91-120-4303500 Fax: +91-120-4082699
Email : rsil @rsystems.com www.rsystems.com
Regd. Off.: GF-1-A, 6, Devika Tower, Nehru Place, New Delhi- 110019
DATE: FEBRUARY 27, 2020
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 INVESTORS/ ANALYSTS
This is with reference to our intimation dated February 21, 2020 regarding Investors/ Analysts call of R Systems International Limited ("the Company") on Thursday, February 27, 2020. 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 February 27, 2020 on the financial results for the quarter and year ended December 31, 2019.
This is for your information and records.
Thanking you,
Yours Faithfully
For R Systems International Limited
Bhasker Dubey (Company Secretary & Compliance Officer)
Analytical Review – Q4 & Year 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 Q4 2019
Revenue ₹ 212.87 Cr. (US$ 30.01 mn)
QoQ Increase
7.84% (6.86% in US$)
YoY Increase 10.61% (11.82% in US$)
EBITDA ₹ 21.76 Cr. (US$ 3.08 mn)
Q4 2019
Q4 2018
Q3 2019
2 2 . 0 1
8 4 . 9
9 7 . 7
E B I D T A R E V E N U E %
Net Profit after Taxes
₹ 23.23 Cr. (US$ 3.29 mn)
Earnings Per Share ₹ 1.94
Key Wins
Share Holder Funds
Cash and Bank Balances
₹ 338.23 Cr.
$ 47.38 mn
₹ 199.92 Cr.
$ 28.00 mn
www.rsystems.com
3
// Key Highlights Year 2019
Revenue
₹ 809.38 Cr. (US$ 115.18 mn)
EBITDA
₹ 73.07 Cr. (US$ 10.40 mn)
YoY Increase
15.64% (12.40% in US$)
Net Profit after Taxes
₹ 58.12 Cr. (US$ 8.27 mn)
Earnings Per Share ₹ 4.82
Year 2019
Year 2018
3 0 . 9
5 2 . 8
E B I D T A R E V E N U E %
Key Wins
www.rsystems.com
4
// Key Highlights (Continues…)
Reported Record Revenue of ₹ 809 crores for Year 2019
Digital contributed over 40% of revenues
Serving 26 million dollar plus customers on run rate basis including 7 accounts contributing dollar three million plus revenues
Added 200 plus technical counts in IT during 2019
Margins improved due to revenue growth, discipline in execution along with rupee depreciation
www.rsystems.com
5
// Financial Performance – Contribution Analysis – Q4 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 provision / (credit)
Net earnings
Q4 2019
Q4 2018
Q3 2019
INR
US$
INR
US$
INR
US$
(Figures in mn)
2,128.71
1,361.51
767.20
36.04%
549.65
25.82%
217.55
10.22%
16.11
201.44
(3.37)
30.89
228.96
(3.35)
232.31
30.01
19.18
10.83
7.75
3.08
0.23
2.85
(0.05)
0.44
3.24
(0.05)
3.29
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
1,973.95
1,305.25
668.70
33.88%
515.00
26.09%
153.70
7.79%
45.14
108.56
(4.29)
35.05
139.32
30.26
109.06
28.09
18.58
9.51
7.33
2.18
0.64
1.54
(0.06)
0.50
1.98
0.43
1.55
www.rsystems.com
6
// Revenue & Gross Margins Analysis – Q4 2019
REVENUES
GROSS MARGIN
7.84 % Increase in Revenue Resulted from:
Volume Impact
6.60%
Rupee Depreciation
1.24%
2.16 % Increase in Gross Margin Resulted from:
Utilization
2.18% Rupee Depreciation
0.25%
Other Costs (0.27)%
www.rsystems.com
7
// Financial Performance – Contribution Analysis – Year 2019
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
www.rsystems.com
(Figures in mn)
(Figures in mn)
(Figures in mn)
Year 2019
Year 2018
INR
US$
INR
US$
8,093.75
5,289.33
2,804.42
34.65%
115.18
75.27
39.91
6,998.89
4,702.17
2,296.72
32.82%
102.47
68.84
33.63
2,073.74
29.51
1,719.46
25.17
25.62%
730.68
9.03%
148.86
581.82
(15.65)
153.18
719.35
138.11
581.24
10.40
2.12
8.28
(0.22)
2.18
10.24
1.97
8.27
24.57%
577.26
8.25%
135.48
441.78
(2.65)
187.69
626.82
116.37
510.45
8.46
1.98
6.48
(0.04)
2.74
9.19
1.70
7.48
8
// Revenue & Gross Margins Analysis – Year 2019
REVENUES
GROSS MARGIN
15.64 % Increase in Revenue Resulted from:
Volume Impact
13.58%
Rupee Depreciation
2.06%
1.83 % Increase in Gross Margin Resulted from: Utilization
2.50%
Rupee Depreciation
0.74%
Salary Increment
(1.41)%
www.rsystems.com
9
// Big Picture – Revenue & EBITDA %age
240.00
200.00
11.03
186.39
192.45
196.30
202.81
9.03
197.39
212.87
10.22
160.00
152.20
168.84 7.12
9.48
8.98
s e r o r C n i
₹
120.00
80.00
40.00
Revenue EBITDA %
4.53
7.79
Q1-18 152.20 4.53
Q2-18 168.84 7.12
Q3-18 186.39 11.03
Q4-18 192.45 9.48
Q1-19 196.30 8.98
Q2-19 202.81 9.03
Q3-19 197.39 7.79
Q4-19 212.87 10.22
12.00
10.00
8.00
6.00
4.00
2.00
%
www.rsystems.com
10
// Consolidated Key Balance Sheet Data
Particulars
As at Dec 31, 2019 As at Dec 31, 2018
₹ in Crores except “DSO”
Share Holders’ Funds
338.23
322.90
Receivables
132.40
136.55
Receivables in days “DSO” for the year
61
67
Cash & Bank balance #
199.92
199.55
# excluding interim dividend liability and unclaimed dividend.
www.rsystems.com
11
// Billable Head Counts and Utilization
2,500
2,000
1,500
1,000
500
-
76.9%
76.6%
78.8%
78.8%
78.2%
78.5%
77.0%
81.1%
2,352
2,379
2,463
2,469
2,347
2,380
659
646
643
610
472
437
2,233
2,147
653
611
1,536
1,580
1,693
1,733
1,820
1,859
1,875
1,943
90.0%
75.0%
60.0%
45.0%
30.0%
15.0%
0.0%
Q1-18
Q2-18
Q3-18
Q4-18
Q1-19
Q2-19
Q3-19
Q4-19
Q1-18
Q2-18
Q3-18
Q4-18
Q1-19
Q2-19
Q3-19
Q4-19
IT
BPO
www.rsystems.com
12
// Revenue Breakdown
By Geography
1.6% 1.7%
20.2%
1.2% 1.6%
18.9%
19.4%
17.9%
1.3% 1.5%
17.0%
15.0%
57.0%
60.4%
65.2%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Year - 17
Year - 18
Year - 19
North America
Europe
SEAC *
India
Others
* South East Asian Countries
www.rsystems.com
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
15.5%
6.0%
Client Concentration
35.3%
34.0%
22.2%
23.5%
31.8%
20.4%
16.1%
6.2%
14.7%
5.9%
10.0%
5.0%
0.0%
The Largest Client Top 3 Clients Top 5 Clients Top 10 Clients
Year - 17 6.0% 15.5% 22.2% 34.0%
Year - 18 6.2% 16.1% 23.5% 35.3%
Year - 19 5.9% 14.7% 20.4% 31.8%
13
// Summing Up and Looking Ahead
Robust performance in 2019 with double digit revenue growth and margin improvement
Good traction towards our product engineering and digital practices resulted into revenue growth along with bigger deal size
Promising start for Year 2020 with encouraging sales pipeline. Started New SEZ unit in Greater Noida with 400 seats to cater to growth
Continued Focus for 2020:
• Leverage product engineering and digital offerings for revenue growth
• Partnering Customer for their digital transformation using cutting edge technologies
• Discipline in execution to enhance margins
• Strong balance sheet to invest for future growth
www.rsystems.com
14
// Contact Information
Kumar Gaurav
AVP Finance & Accounts
Tel # 0120 - 4082650 Email: kumar.gaurav@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
www.rsystems.com
15