Highlights of the call:

For the quarter ended March 21018, revenues on Constant Currency basis fell 16% to Rs 63.13 crore.

For the quarter ended March 21018, revenues on Forex adjusted basis fell 12% to Rs 63.78 crore.

For the quarter ended March 21018, reported revenues fell 11% to Rs 63.58 crore.

Revenue was suppressed by Rs 8.3 crores in FY18, due to unfavourable exchange rate movement.

mag+ revenue for Q4 FY 18 was Rs 2.7 crore against Rs 4.8 crore in March 2017. Unhealthy revenue has been removed.

EBITDA margin was suppressed by 2.3% for FY18, due to unfavourable exchange rate movement.

Content Solutions revenue were suppressed by Rs 6.85 crore in FY18, due to unfavourable exchange rate movement and EBITDA margin was suppressed by 2.33% for FY18, due to unfavourable exchange rate movement.

Platform Solutions revenue were suppressed by Rs 1.47 crore for FY18, due to unfavourable exchange rate movement. EBITDA margin was suppressed by 2.29% for FY18, due to unfavourable exchange rate movement.

Total Cash and Cash equivalents as on Mar 2018 was Rs 311 crore (including investment in mutual funds) against 223 crore as on Mar 2017. Of this, the company will utilize Rs 80 crore for TIS acquisition and Rs 30 crore will be paid as dividends. MPS will use the remaining cash for future M&As. Future M&A's will depend on opportunity as it desires to fill some niche gaps in the Publishing space going ahead.

The company is a zero debt company.

USD accounted for 74% of revenues in FY 2018 against 76%.

GBP accounted for 234% of revenues in FY 2018 against 21%.

Euro accounted for 2% of revenues in FY 2018 same as FY 2017.

North America accounted for 56% of revenues in FY 2018 against 59%.

UK/Europe accounted for 40% of revenues in FY 2018 against 39%.

Rest of the World accounted for 4% of revenues in FY 2018 against 2%.

As MPS is growing, its customer base is diversifying due to growth in larger accounts and addition of smaller customers through its platform business.

Its core customer base has now expanded to 15 large accounts.

Both segments i.e. Content Solutions (down 5.6% qoq) and Platform Solutions (down 9.7% qoq) witnessed a decline in Q4FY18 sequentially.

The management attributed this to unfavorable exchange rate movements and ongoing transition of its employees from Bengaluru facility to Dehradun facility.

Platform business registered a modest dip as it continues to exit some low-margin deals in the mag+ revenue segment.

In FY18, while Platform solutions (17% of sales) grew by 18%, Content solutions (83% of sales) declined by 12% due to lower volumes and slower decision making in the Publishing space.

Going ahead, MPS management has guided for growth recovery in the Publishing (content) business, as it has the widest options in this space.

With Tata Interactive Systems (TIS) acquisition, MPS expects to enter into the adjacent Enterprise E-learning space, which is growing at 10% yoy and where the market opportunity is 100 times larger than the opportunity in the Publishing space.

TIS develops training content (also provides training in some cases) and works with enterprises and other agencies directly for productivity enhancement in the areas such as Sales, HR and Marketing.

As part of this acquisition, MPS has acquired 3 entities viz. TIS India, TIS AG (Swiss subsidiary) and TIS Gmbh (German subsidiary). While financials of TIS India and TIS AG will be a part of its newly formed MPS Interactive Systems, financials of TIS Gmbh will be part of MPS' standalone financials. MPS will continue to report its standalone and consolidated revenues under two heads i.e. Content business and Platform business.

TIS will continue to operate with its existing brand name. Also, its lower level employees and mid

-level management will continue to be a part of TIS.

MPS acquired TIS in April'18. TIS revenue is presently on a declining trend.

MPS expects TIS revenue to erode further by 10-15% in FY19.

MPS has finished consolidation of technical and marketing operations of its Platform business.

MPS stated that TIS acquisition should be valued based on its revenue, as it expects significant improvement in its EBITDA margin by second half of FY 20 to mid-20s from high single digits presently.