Kailash Katkar – Managing Director & CEO and Sanjay Katkar – Joint Managing Director & CTO addressed the call.

Highlights of the call:

Q2 is usually better than Q1 and this time also same trend followed.

Quarter sales grew 4% to Rs 105.1 crore on yoy basis.

Quarter PAT grew 9% to Rs 38.5 crore on yoy basis.

There has been a steady momentum in the business which is visible from H1FY19 performance.

Six months sales grew 20% to Rs 162.2 crore.

EBITDA grew 58% to Rs 68.6 crore.

EBITDA margins stood at 42.27% against 32.08%.

PAT grew 77% to Rs 48.2 crore.

PAT margin stood at 29.72% against 20.07%

Retail segment revenue grew 20% to Rs 137.9 crore and accounted for 80% of sales.

It has 23,480 retail partners

It has 34% market share in Retail Segment in India.

Enterprise and Government segment revenue grew 8% to Rs 33.5 crore and accounted for 20% of sales.

The company has been actively engaging with the channel ecosystem, which has resulted in a better performance in Retail as well as Enterprise & Government segment.

The Retail segment has grown by 20% on YoY basis whereas the Enterprise segment has grown by 8% on YoY basis.

It continues to remain focused on the growth of both retail and enterprise segments and is confident of continuing on the growth path in the coming quarters

The company has been actively working on various strategies to fuel growth in the business and at the same time also maintains strict cost controls. The strategy has paid off in H1 FY19, wherein it has witnessed 20% growth in revenues and increase in EBITDA and PAT margins by 1,019 bps and 965 bps respectively.

The company is constantly working towards faster growth in Enterprise & Government segment and is confident of replicating its success of retail business on the Enterprise side as well.

The company is present in 40 countries but not all are very active but none are dead.

It has 4 patents in the US and is awaiting 3 patents in India.

By 2022, India's digital economy is expected to grow to USD 1 trillion.

The Government is working on strong data protection regulations. This should benefit the company.

In Q3 of CY 2019 288 million cyber threats targeted Individuals and Businesses.

Enterprises are increasingly adopting security solutions to combat advanced cyber-threats.

The cyber threat landscape has been presenting new challenges every day and to ensure security of the digital world, the company has been regularly enhancing the features of existing products as well as launching new products to counter the threat landscape.

According to RBI data, mobile wallet transactions hit record 14,632 crore in June 2018. Proliferation of smart devices will raise cybersecurity risks.

By 2022, 6 billion people will be vulnerable to cyberattacks.

The launch of Secure Web Gateway is a testimony to its commitment and ability to create customised solutions for the diversified needs of customers.

By 2020, it is anticipated, the IoT may comprise as many as 30 billion devices.

The company will give special focus on Tier II and Tier III towns.

Going forward, it will focus on international expansion through consistent brand building and marketing effort. It is exploring opportunities in Africa, Middle East & South East Asia.

Manufacturing, BFSI, healthcare and hospitality will be its focus industries.

RoE stood at 14.7% up from 13.8% qoq and 7.8% yoy.

The company added 26 new accounts in Enterprise business which will help it move up in value chain. Enterprise business includes large enterprises also.

It is focusing on new products to get more traction going forward.

The company has not yet decided on spending the cash it has on its book.

Advertising and marketing have increased and so the expenses have gone up.

Since Lok Sabha elections are nearing the management is skeptical of many new orders from the government.

Retail segment should have higher single digit growth and enterprise segment will have over 20% growth on annual basis.

EBITDA margins should be in the range of 32-35%. There will be more investment in second half to increase the revenues.

Retail retention is around 40%.