MPS Limited — Interim / Quarterly Report 2019

Jan 18, 2019

Financial Performance Q3 FY19

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Financial Summary

	Metrics	**FY19 Q3 **	**FY18 Q3 **	**Q-o-Q **	**YTD FY19 **	**YTD FY18 **	Y-o-Y
Revenue	FX Gain/Loss adjusted revenue (INR Lacs)	10,033	6,899	45.4%	27,125	20,585	31.8%
	Reported Revenue (INR Lacs)	9,953	6,788	46.6%	27,225	20,345	33.8%
	EBITDA on Fx adjusted revenue (INR Lacs)	2,548	2,510	1.5%	7,085	7,095	-0.1%
Profit	PBT (INR Lacs)	2,741	2,714	1.0%	7,528	7,982	-5.7%
	PAT (INR Lacs)	1,948	1,756	10.9%	5,343	5,505	-2.9%
	EBITDA (%)	25.4%	36.4%		26.1%	34.5%
Margin	PBT (%)	27.3%	39.3%		27.8%	38.8%
	PAT (%)	19.4%	25.5%		19.7%	26.7%
Headcount	At the end of each reporting period in Nos.	2,643	2,511		2,643	2,511
EPS	Basic and Diluted EPS (INR)	10.46	9.43		28.69	29.57

Analysis (FX Gain/Loss Adjusted Revenue)

• Headcount increase of 283 is due to acquisition of MPS Interactive Systems, MPS EUROPA and TOPSIM GmbH.

• Effective Tax rate is 28.9% compared to 35.3% in the same quarter FY18.

• Profit and Margins are on FX Gain/Loss adjusted revenue.

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Financial Summary – Business Segments

Metrics		FY19 Q3	FY19 Q3	FY19 Q3	FY18 Q3	FY18 Q3	YTD FY19	YTD FY19	YTD FY19	YTD FY18	YTD FY18
		Content Solutions	eLearning	Platform Solutions	Content Solutions	Platform Solutions	Content Solutions	eLearning	Platform Solutions	Content Solutions	Platform Solutions
Revenue	FX Gain/Loss adjusted revenue (INR Lacs)	6,068	2,071	1,894	5,663	1,235	17,286	5,114	4,725	16,914	3,671
	Reported Revenue (INR Lacs)	5,977	2,099	1,877	5,572	1,216	17,363	5,117	4,745	16,717	3,628
Margin	EBITDA (%)	33.0%	2.5%	25.9%	36.5%	35.8%	33.2%	-0.5%	29.1%	36.0%	27.6%
Headcount	At the end of each reporting period in Nos.	2,227	251	165	2,228	283	2,227	251	165	2,228	283

Analysis (FX Gain/Loss Adjusted Revenue)

• Platform Solutions includes TOPSIM GmbH. .

• eLearning includes MPS Interactive Systems and MPS EUROPA.

• Profit and Margins are on FX Gain/Loss adjusted revenue.

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Other Updates

Cash and Cash equivalents

• Total Cash and Cash equivalents as on 31‐Dec‐2018 is INR 257.75 Crores (including investment in mutual funds) and INR 310.99 Crores as on 31‐Mar‐18; Zero debt

CSR Update

• Total Spending for Q3 FY 2018‐19 INR 54.6 Lacs.

IIMPACT

• Area Covered: Girls Education

• Project Name: MPS Limited Girls Education Project

• Total Learning Centres being Supported: 100

Vedanta Cultural Foundation

o Area Covered: Promoting education, including special education and employment enhancing vocation skills, especially among children, women, elderly and the differently abled and livelihood enhancement projects.

Computer Education

• Imparting free computer education to under privileged students.

SAMBANDH

• Area Covered: MENTAL HEALTH

• Pilot Project at Gurgaon

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Key Business Metrics

(does not include eLearning Solutions and TOPSIM)

	Metrics	FY19 Q3	FY18 Q3	FY19 YTD	FY18 YTD
	USD	83%	75%	83%	74%
Currency	GBP	15%	22%	14%	23%
Contribution (%)	EURO	2%	2%	2%	2%
	Others	1%	1%	2%	1%
Ghi	North America	57%	60%	54%	59%
eograpc Concentration	UK/Europe	41%	38%	43%	37%
	Rest of the World	3%	2%	3%	4%
Debtors	DSO	63	69	64	69
	Client Billed	320	336	417	410
Client	Top 5 contribution	54%	56%	55%	55%
Concentration	Top 10 contribution	72%	73%	72%	72%
	Top15 contribution	81%	81%	80%	79%

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Key Business Metrics

Consolidated

Metrics	Metrics	FY19 Q3	FY18 Q3	FY19 YTD	FY18 YTD
	USD	71%	75%	72%	74%
Currenc Contribution (%)	GBP	11%	22%	11%	23%
y	EURO	8%	2%	6%	2%
	Others	11%	1%	11%	1%
	North America	56%	60%	53%	59%
Geographic Concentration	UK/Europe	38%	38%	38%	37%
	Rest of the World	7%	2%	9%	4%
Debtors	DSO	73	69	75	69
	Client Billed	581	336	796	410
Client Concentration	Top 5 contribution	40%	56%	44%	55%
	Top 10 contribution	54%	73%	59%	72%
	Top15 contribution	64%	81%	67%	79%

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Disclaimer

This presentation contains forward-looking statements, inter-alia, to enable investors to comprehend Company’s prospects and take informed investment decisions. This report and other statements – written and oral – that we periodically make, contain forward-looking statements that setout anticipated results based on the management’s plans and assumptions. We have tried wherever possible to identify such statements by using words as ‘anticipate’, ‘estimate’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward-looking statements will be realized, although we believe we have been prudent in assumptions. The achievement of results is, inter-alia, subject to assumptions, risks, uncertainties, including but not limited to our ability to successfully conclude and integrate (potential) acquisition(s) and general regulatory and economic conditions affecting the industry. Should known or unknown risks or uncertainties materialize or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated, expected or projected. We undertake no obligation to publicly update or revise any forwardlooking statements, whether as a result of new information, future events or otherwise. Further this presentation may also contain references to findings of various reports available in public domain. We make no representations as to their accuracy or that we necessarily subscribe to those findings. Figures for previous periods / year have been regrouped, wherever necessary.

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Thank You

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