analytical review q4 & year 2020 results
TRANSCRIPT
R Systems
I n t e n s i f y i n g D i g i t a l T r a n s f o r m a t i o n
A n a l y t i c a l R e v i e w Q 4 & Y e a r 2 0 2 0 R e s u l t s
Disclaimer “Investors are cautioned that this presentationcontains forward looking statements thatinvolve risks and uncertainties. The Companyundertakes no obligation publicly to update orrevise any forward‐looking statements,whether because of new information, futureevents, or otherwise. Actual results,performance, or achievements could differfrom those expressed or implied in suchforward‐looking statements.”
Key Highlights Year 2020
Revenue
₹ 880.6 Cr(US$ 119.2 Mn)YoY 8.80%
EBITDA as % of Revenue
EBITDA
₹ 116.8 Cr(US$ 15.8 Mn)YoY 59.9%
13.27
9.03
Year 2020 Year 2019
Net Profit ₹ 82.2 Cr(US$ 11.1 Mn)
EarningsPer Share
₹ 6.9
Share Holder Funds
₹ 426.6 Cr(US$ 58.4 Mn)
Net Cash Balance
₹ 302.8 Cr(US$ 41.4 Mn)
Day Sales Outstanding
53 Days
Key Highlights Q4 2020
Revenue
₹ 236.6 Cr(US$ 32.1 Mn)QoQ 5.5%
EBITDA₹ 38.0 Cr
(US$ 5.2 Mn)QoQ 6.8%
16.06
10.22
15.87
Q4 2020 Q4 2019 Q3 2020
Net Profit₹ 29.4 Cr
(US$ 3.9 Mn)QoQ 8.2%
EBITDA as % of Revenue
Key Highlights (Continues …)
Reported Record Revenues amidthe pandemic with strongimprovement in margins
Margins Improvement on theback of efficiencies in operations,savings from WFH along withRupee depreciation
On‐boarded 330+ associatesduring H2‐2020 to support strongsales funnel
Serving 30 million dollar pluscustomers including 5 accountscontributing dollar three millionplus revenues on run rate basis
28 Key wins during FY 2020including 8 customers withUS$ one million plus potential
Witnessed good traction towardsdigital services and solutionsusing RPA, cloud, IOT, mobility,and analytics
Financial Performance – Contribution Analysis – Year 2020
Particulars ₹ US$ ₹ US$Revenues 8,805.91 119.16 8,093.75 115.18 Cost of revenues 5,579.22 75.50 5,289.33 75.27 Gross margin 3,226.69 43.66 2,804.42 39.91
36.64% 34.65%SG & AExpenses 2,058.28 27.86 2,073.74 29.51
23.37% 25.62%EBITDA 1,168.41 15.80 730.68 10.40
13.27% 9.03%Depreciation and amortization 256.04 3.46 148.86 2.12 EBIT before exceptional items 912.37 12.34 581.82 8.28 Exceptional items 18.65 0.25 ‐ ‐EBIT 893.72 12.09 581.82 8.28 Finance cost (56.66) (0.77) (15.65) (0.22)Other income (net) 129.05 1.75 153.18 2.18 Income before income tax 966.11 13.07 719.35 10.24 Income tax expense 144.22 1.95 138.11 1.97 Net earnings 821.89 11.12 581.24 8.27
Year 2020 Year 2019Figures in Mn
Revenue and Gross Margin Analysis – Year 2020
xxx Revenues8.80%Increase in Revenue from:Rupee depreciation
5.44%
Volume gains
3.36%
xxx Gross margins1.99%Increase in Gross Margins from:Lesser travel and BPO transport
Salary raises
1.46%
(1.31)%
Rupee depreciation1.31%Saving in other COGS & Govt. grant0.53%
Financial Performance – Contribution Analysis – Q4 2020
Particulars ₹ US$ ₹ US$ ₹ US$Revenues 2,366.41 32.12 2,128.71 30.01 2,243.03 30.25 Cost of revenues 1,477.94 20.06 1,361.51 19.18 1,392.61 18.78 Gross margin 888.47 12.06 767.20 10.83 850.42 11.47
37.55% 36.04% 37.91%SG & AExpenses 508.47 6.90 549.65 7.75 494.54 6.66
21.49% 25.82% 22.05%EBITDA 380.00 5.16 217.55 3.08 355.88 4.81
16.06% 10.22% 15.87%Depreciation and amortization 59.73 0.81 16.11 0.23 64.41 0.87 EBIT before exceptional items 320.27 4.35 201.44 2.85 291.47 3.94 Exceptional items 18.65 0.25 ‐ ‐ ‐ ‐EBIT 301.62 4.10 201.44 2.85 291.47 3.94 Finance cost (14.42) (0.20) (3.37) (0.05) (14.92) (0.20)Other income (net) 45.34 0.61 30.89 0.44 56.44 0.76 Income before income tax 332.54 4.51 228.96 3.24 332.99 4.50 Income tax expense / (credit) 38.74 0.53 (3.35) (0.05) 61.51 0.83 Net earnings 293.80 3.98 232.31 3.29 271.48 3.67
Q4 2020 Q4 2019 Q3 2020Figures in Mn
Revenue and Gross Margin Analysis ‐ Q4 2020
xxx
Revenues5.50%Increase in Revenue from:
Volume gains
5.50%
xxx Gross Margins(0.36)%Decrease in Gross Margins from:Salary raises
Decrease in other COGS
(1.09)%
0.28%
Increase in utilization0.45%
INR Depreciation against Euro has offset the impact of INR Appreciation against US$
Big Picture – Revenue & EBITDA %age
196.3 202.8 197.4212.9 209.3 210.4
224.3236.6
8.98 9.037.79
10.229.63
10.98
15.87 16.06
0
5
10
15
20
0.0
50.0
100.0
150.0
200.0
250.0
Q1 19 Q2 19 Q3 19 Q4 19 Q1 20* Q2 20* Q3 20* Q4 20*
Revenue EBITDA %
₹ in Crores
%
* Post Ind‐AS 116 Adoption
Billable Associates
1,82
0
1,85
9
1,87
5
1,94
3
1,98
2
1,89
9
2,06
8
2,18
4
643
610
472
437
471
436 43
8 4882,463 2,469
2,347 2,380 2,4532,335
2,5062,672
0
900
1800
2700
Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20
IT BPO
Added net 330 + Technical Associates during H2‐ 2020.
Utilization
80.3%79.7%
78.4%80.8%
77.7% 78.8%
78.6%
79.5%
72.3%
74.6%
71.6%
82.7%
77.1%
69.1%
81.0% 79.8%
78.2% 78.4%77.0%
81.1%
77.6% 76.9%79.0%
79.5%
65%
75%
85%
Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20
IT BPO Blended
Revenue Breakdown
* South East Asian Countries
By Geography Client Concentration
0%
25%
50%
75%
100%
Year 2018 Year 2019 Year 2020
60.4% 65.2% 68.0%
17.9%15.0% 13.2%
18.9% 17.0% 16.3%
1.6% 1.5% 1.6%1.2% 1.3% 0.9%
North America Europe SEAC* India Others
0.0%
20.0%
40.0%
Year 2018 Year 2019 Year 2020
6.2% 5.9%7.7%
16.1%14.7% 14.1%
23.5%
20.4%19.0%
35.3%
31.8%
28.5%
The Largest Client Top 3 Clients Top 5 Clients Top 10 Clients
Summing Up and Looking Ahead
Regained momentum to report revenue growth inFY 2020 with strong margin improvement
Optimistic to deliver profitable growth on the back ofstrong sales funnel specially for Technology, Cloudand Digital services
Continuous Financial stimulus by various Governments isalso supporting the demand environment
• Partnering withcustomers in navigatingsuccessful digitaltransformations
• Ensure safe andreliable operationsfor all stakeholders
• Maintain marginsby efficient operationsand other cost savingmeasures
• Utilize Strong BalanceSheet for future growth
Focus for 2021
Businesses have shown renewed interest in digital andtechnology services to align in this new normal
Contact InformationNand Sardana
Chief Financial OfficerTel # 0120 – 4303506Email: [email protected]
Kumar Gaurav
AVP Finance & AccountsTel # 0120 ‐ 4082650Email: [email protected]
Bhasker Dubey
Company Secretary & Compliance OfficerTel # 0120 ‐ 4303566Email: [email protected]
Thank You for your Support