Key Highlights

Acquired Planet pro in FY 18 having knowledge of analytics and customer program services for enterprise clients. Size of acquisition is small. There is no major impact on the acquisition on balance sheet. However financial details will be revealed in the Annual report.

The company is working on some Energy sector platform and some concepts around the world and will be converted to sales opportunity.

Currently account receivables days stands at 78 days. Generally days are higher as Fortune 100 companies have higher payment cycles.

The Planet Pro has slightly higher working capital days as it serves very large customers in Asia Pacific.

113 crore of debt on books of accounts as on Mar 18. Repaid around Rs 6 crore debt in FY 18. Debt will be more or less around this level or may slightly come down as company is looking for further acquisitions.

The company is continues to look out for acquisition. Buys a company for customer base and capability rather than revenue.

Company is way ahead in competition on digitalization and is constantly working on to remain ahead of the curve.

More digital transformation contracts led to higher margin improvements in FY 18.

Cross tax benefits in international subsidiaries lead to overall lower tax in FY 18. Tax should be around this rate going forward.

Debt equity ratio stands at 0.44 as compared to 0.68 for FY 17.

Pledge of shares for banks working capital and subsidiaries financials. Despite improvement in net worth and loan repayments, shares could not be unpledged due to current risk averse environment in the banks.

Lot of traction in digital transaction is visible and more to come. The company is working on various Live projects and new technology, IOB solutions, Robotic solutions, proof of consents etc which will drive future growth.

Conservatively 15-20% growth in sales for FY 19.

10 new customers added which will lead to higher digital revenues going forward.

Normally 80% of customers are with repeat businesses, balance are contract based which ends in a particular year.

The company is not aggressively working on any QIP issue at this moment.

80% of revenues come from US. Effective Jan 18, US tax rates have reduced so the company will get benefit there. Also Indian revenues are around Rs 100 crore so lower tax rates will apply in Indian operations as well.

By 2021, company aims to reach US $ 300 M. However the company was not able to raise the money that is required for that growth. Chances are there that the goal can be delayed by 1 year to 2022 largely due to lower funds and nothing else. But the company is extremely confident of achieving the target by 2022.