Key Highlights

7 new customers signed in Dec 17 quarter

The company has launched Innovative IOCE artificial platform for energy. This will enable energy industries to leverage company's solutions. Market size is around US $ 16 billion.

In next 5 years, the company expects around 15% of its revenues from energy segment compared to hardly anything as on date.

Partnered with SAP for critical analytics solutions. SAP will open client list for the company and Kellton will provide its solutions. This is an add on service.

Job market is getting very strong in US. US economy is getting very bullish. This will translate into more pipelines of orders for the company. One of the reasons why US interest rates will rise faster than expected.

The company expects current run rate of the quarter to continue going forward as well in terms of sales and margin growth.

12% revenues from education client in Mauritius in Dec 17. Education sector revenue stood at 12% of total revenue as compared to 2% for Dec 16 quarter. Further contract negotiations are going on with Government of Mauritius.

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

In Dec 17 quarter, there was some hardware provided in digital transformation business in education sector, which resulted in some lower margins overall.

Company continues to invest in growth so as to reach next level of growth. Building up team and infrastructure to take the company to US $ 300 M. Also company is expanding in EU. While growth is coming investing is required. Hence the overall OPM is around 14-15%, otherwise margins would have been much higher.

The company is confident of around 20% of growth to continue going forward.

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.

Interest cost was higher due to increase in working capital due to Mauritius Education government order. Working capital should come down by end of year.

Receivable days currently are around 75 days for the company. Big fatty companies even though they sit on cash, take their time on payments.

Company is also working on to build a technology chains like Bitcoins type and is trying to build a platform.

By 2021, company aimed 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.

Primary reason for Bonus is to increase liquidity in the scrip.