Key Highlights

Net sales was lower by around 2.4% in June 18 quarter on QoQ basis, as Mar 18 quarter had sale of a subsidiary which was sold off in June 18 quarter. The divestment was a strategic decision, as the subsidiary had revenue of around US $ 9 M but low profitability and lower margins. The company sold off the subsidiary at a very marginal gain. Nothing material.

Also Phase 1 of Mauritius govt project got completed in Mar 18 quarter. Entire FY 18 had a billing of around Rs 60 crore for this Mauritius project which got completed. The company has successfully received the Phase 2 of the Mauritius govt project which is of value of Rs 30 crore which will start from Sep 18 quarter onwards.

The company won 12 new clients in June 18 quarter. This includes one in manufacturing sector providing end to end digital platform, online payment gateway solutions for a US software company and others in healthcare, BFSI and IT networking segment.

The company has a little over 7 months of order book and is comfortably placed for a high teens growth in FY 19 despite lower Mauritius govt revenue in FY 19.

Total debt of around Rs 140 crore. Expects debt to be lower or around same level going forward.

Expects margins to reach to 17-18% going forward as more and more value added services contribute.

No plans of QIP as of now, management will manage through internal accruals.

The pledged shares are not coming down as earlier told by the management to the investors. This is largely due to banks increasing stringent norms due to the recent events in the banking sector.

Cross tax benefits in international subsidiaries and lower taxes in India will result in lower tax rates.

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

80% of revenues come from US.

The company continuously looks out for acquisition. Buys a company for customer base and capability rather than revenue of any target buyout.