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SoftTech Engineers Limited Investor Presentation 2019
62093_rns_2019-05-31_23156fc4-1e47-4c03-8ca0-d214fad42e9b.pdf
Investor Presentation
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To, National Stock Exchange of India Bandra-Kurla Complex . Bandra (East) Mumbai - 400 051 Limited
3l'tMay,2019
SOFTTECH
Subject: Investor presentation
Dear Sir/ Madam,
Please find enclosed the Investor presentation H2 & FYI9" titled "SoftTech Engineers Limited Investor presentation
This is for your information and records.
Thanking you.
For SoftTech Engineers Limited Yours Sincerely,
Aishwarya Patwa Company Secretary
SoftTech Engi neers Limited {formerly known as SoftTech EngineeE Pvt. Ltd.) The Pentagon - 5A, 5th Floor, Shahu College Road, Pune - 411 009, Maharashtra, lndia. T: +9:l 20 2421 7676 / 2421 8747 ClNr 1301 07PN1 996P1C01 671 I
Sof,LTech Em pov,iering Tra nsformatio n
E: [email protected] I www.softtech-engr.com
SoftTech Engineers Limited
Investor Presentation d H2 & FY19
This presentation has been prepared by SoftTech Engineers Limited (the "Company") solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company's market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.
Company Overview
Leading innovative software solution providers empowering business transformation through software products in architecture, engineering and construction (AEC) domains
04 600+ Team Members
03 500+ Customers Served
▪ Clients across Government bodies, smart cities and enterprises in construction and infrastructure industry
02 Niche Product Offerings
▪ Pioneer products enabling digital transformation such as AutoDCR®, OPTICONTM, PWIMSTM, etc.
01 Market Leader
▪ Pioneer and Market Leader (~80% Market Share) in Building Permit Automation System, through flagship Product AutoDCR®
▪ Highly qualified team of motivated technocrats led by visionary and highly experienced management team
05 20,000+ Software Users
▪ More than 20,000 users across various segments in domestic and international market
06 Latest Technology & Innovation
- Offers 2D & 3D based intelligent and machine learning driven technology
- Innovating Cloud technology enabled products
07 Strong Track Record
- Delivered to over 500 clients for over two decades to meet industry standards
- Consistent High Growth in last 5 years
Professional Management…
Vijay Gupta Chairman & CEO
Priti Gupta Whole Time Director
Piranvez Irani Chief Financial Officer
Arun Biswas VP- Global Delivery
Deepak Warad VP- Account & Contract Management
- M. Tech. (IIT, Mumbai)
- 28+ years experience, Founder of SoftTech
- First generation entrepreneur
- B. Sc., Post Graduate in Computing programming System Analysis and Application, M.B.A.
- 25+ years experience
- HR and Quality Processes Expert
- FCA, B.Com
- 18+ years experience
- Heading Accounts and Finance Department
- AMIE Mechanical
- 25+ years experience
- Heading Delivery ,Quality and Knowledge Management Team
- B.E., Diploma in Management
- 25+ years experience
- Heading the Pre-sales, Contract & Account Management Team
…Supported by Reputed Auditor Grant Thornton
Professional Management…
8
Surajit Bhattacharjee VP- Sales
Vijay Jain VP- Business Development
Neetesh Singhal AVP- Technology
Sheetal Jagtap AVP- AutoDCR
Premnath Basava AVP- OPTICON
Madhu Kelkar GM (BIM Division)
| ▪▪▪ | B.E, Sr. Management Programme(IIM, Kolkata)25+ years experienceHeading Sales Team |
|---|---|
| ▪▪▪ | Diploma in System Design & Analysis25+ years experienceHeading the Business Development Team |
| ▪▪▪ | B.E. (Electronics), MS (Software Systems)19+ years experienceHeading the Product Technology Team |
| ▪▪▪ | B. Arch., M.Tech., EPBM, "Certificated Scrum Master", "Certified Software Engineering Professional",EPAF (IIM, Kolkata)18+ years experienceHeading the AutoDCR product team |
| ▪▪▪ | BE (Production), MMS25+ years experienceHeading Opticon Product Team |
| ▪▪▪ | BE (Civil), "Certificated Scrum Master", ITIL v3 Foundation certified, Certification in Laws ofPatents & other IP20+ years experienceHeading BIMDCRTMProduct Team |
…Supported by Reputed Auditor Grant Thornton
Business Overview
- ✓ Unique and innovative Smart City Solution for building plan, scrutiny and approval system
- ✓ Solution for automation of building and layout plan approval reads 2D CAD drawings and maps them to development control regulations of urban local bodies (ULBs)
- ✓ Approving authorities integrated with online approval workflow to monitor approval process with associated document scrutiny
- ✓ Enabling smarter management of processes for public works organization
- ✓ Web-based commercial-off-the shelf (COTS) application for managing all core functional process across project lifecycle including budgets, estimations, financial & technical approvals, e-tendering, contact management, monitoring and billing
Current Products – OPTICONTM
Evaluate detailed cost estimate for projects
Manage schedules and eliminate cost and schedule overruns
Overview of all data in one Dashboard
Digitize all functions involved in building construction lifecycle
✓ Innovative 3D building model based online SINGLE WINDOW system
✓ BIM based integrated building approval system - enables automatic scrutiny of building proposal by reading building models submitted by applicant/architect
Combined remarks of all departments and deviations as per bylaws/norms highlighted – all on a single model
Upcoming Product – IBPS (The Portal Based Approach)
STRUDS product -adopted successfully at Malaysia, UAE, Kenya, Nigeria, Uganda
Expanding Global Footprint
| Middle East (UAE, SaudiArabia, Oman, Kuwait,Bahrain etc) | FY 19, 20 |
|---|---|
| Africa (Nigeria, etc) | FY 19, 20 |
| South Asia (Singapore,Indonesia, Malaysia,Philippines) | FY 19, 20 |
| North America | FY 19, 20 |
| Australia | FY 20, 21 |
| Europe ( Finland ) | FY 19, 20 |
Leverage Partnerships
▪ Channel partners, local established players, leverage sales network of technology partner
Brand Marketing
▪ Event participation, industry leadership programs and industry associations
Product Strategy
▪ Diverse offerings and market segmentation
Scalable Revenue Model
▪ Scalable and sustainable revenue generation using multiple revenue models
Holistic approach with focus on key growth drivers 21
Successful Track Record
- Largest market share in India (80%) for building plan approval management system
- Tried and tested technological products
- Customers spread across India
- Pre-approved government vendor
Favorable Market Conditions
- Govt. initiatives for EODB, digital India and smart cities
- Growing construction & infrastructure industry
- High adoption of internet, mobile & cloud technology
Proven Unique Technology
- Product designed to meet needs of e-governance and construction sectors
- Scalable & flexible products
- Alliances with many technology leaders
Commercial Viability
- Higher ROI profitable since inception
- Lower product development cost due to readily available expertise for CAD, BIM and web technologies
Technology – One Of Our Biggest Core Strengths
Awards and Recognitions
Innovative use of technology in e-Governance 2014" for ABPAS implemented by SoftTech at MPUIIP
AUTODCR Conferred with 'Manthan South Asia Award 2010 For e-Governance
SME Achievers Award for Year 2015-16 by SME 100 FORUM, Supported by Ministry of MSME, Govt. of India
24
AIMA Award for "Creativity & Innovation in Micro, Small & Medium Enterprises – 2016"
By NASSCOM in 2014
Financial Highlights
Chairman & CEO's Message
Commenting on results, Mr. Vijay Gupta, Chairman & CEO, SoftTech Engineers Limited said:
"Financial year 2018-19 has been a milestone year for our Company. During the year, we have witnessed the Company's continued performance and an uptick in demand for our products resulting in a robust & strong order book.
Our Company has registered a revenue of Rs. 62.76 crore and overall profit of Rs. 7.79 crore. This growth has been driven by all scalable products especially a strong demand for our product PWIMS, besides continuous high traction for AutoDCR. Our deep industry knowledge and insight with strategic approach to business efficiency and transformation combined with the excellent team have been our key strengths.
We continue to witness traction for our products and our bookings this quarter have been very good till date. Our pipeline remains strong, as we have promised in our earlier years to enter international market, we are in lines with that and have ventured into USA, Finland and Asia pacific countries by setting up subsidiaries and business partners. Our organic growth momentum is picking up in FY20 which will help our Company to jump to the next level, increasing our sales revenue and at the same time achieving higher profit margins, which will help us to achieve greater heights.
I would like to thank you for your support, consistent commitment, engagement and encouragement. We continue to seek your participation in our next leg of growth and footprint expansion."
# Revenue & EBITDA excluding other income
* In FY 19, Company issued fresh Equity shares of ~2.4 mn, which increased total shares from 7 mn to 9.4mn leading to EPS dilution
Annual Financial Highlights
| Standalone | Consolidated | |||
|---|---|---|---|---|
| Rs. Cr | FY19 | FY18 | Y-o-Y (%) | FY19 |
| Revenue fromOperations | 62.76 | 51.54 | 21.76% | 62.76 |
| Raw material | 4.92 | 4.41 | 4.92 | |
| Employee expenses | 9.83 | 8.37 | 10.00 | |
| Professional fees fortechnical consultants | 22.38 | 16.95 | 22.38 | |
| Other expenses | 9.77 | 6.59 | 9.96 | |
| Total Expenditure | 46.91 | 36.31 | 47.26 | |
| EBITDA | 15.85 | 15.23 | 4.07% | 15.49 |
| EBITDA Margin (%) | 25.25% | 29.55% | 24.69% | |
| Other income | 0.80 | 0.45 | 0.79 | |
| Depreciation | 4.04 | 3.78 | 4.04 | |
| Interest | 1.68 | 2.27 | 1.68 | |
| PBT | 10.92 | 9.63 | 10.56 | |
| Tax | 3.13 | 2.84 | 3.13 | |
| PAT | 7.79 | 6.79 | 14.72% | 7.42 |
| PAT Margin | 12.42% | 13.18% | 11.83% | |
| Basic EPS* (in Rs.) | 8.50 | 9.63 | (11.73%) | 8.10 |
- Increase in Revenue from Operations driven by timely execution of orders & increased demand for flagship products especially PWIMS
- EBITDA increase despite increase in expenses in H2FY19 incurred for following:
- Increase in employees (senior management team, technical, marketing & sales)
- Other expenses invested in additional project implementation costs for timely and efficient execution of growing order book and expansion in overseas markets
28
* In FY19, Company issued fresh Equity shares of ~2.4 mn, which increased total shares from 7 mn to 9.4mn leading to EPS dilution
Revenue Contribution – Product Wise (as % of sales)
* Others includes revenue from products and services other than own products
Standalone Balance Sheet – As on 31st March
| Rs. in Cr | As on31stMar-19 | As on31stMar-18 |
|---|---|---|
| Shareholder's Funds | 61.15 | 37.40 |
| Share capital | 9.42 | 7.05 |
| Reserves & Surplus | 51.73 | 30.35 |
| Non-current liabilities | 6.32 | 5.64 |
| Long-term borrowings | 5.67 | 5.10 |
| Other long-term liabilities | 0.01 | 0.01 |
| Long-term provisions | 0.65 | 0.53 |
| Current liabilities | 17.99 | 25.43 |
| Short-term borrowings | 7.07 | 4.51 |
| Trade payables | 1.67 | 7.55 |
| Other current liabilities | 8.95 | 13.13 |
| Short-term provisions | 0.30 | 0.24 |
| Total Equity & Liabilities | 85.47 | 68.46 |
| Rs. in Cr | As on31stMar-19 | As on31stMar-18 |
|---|---|---|
| Non-current assets | 25.77 | 20.28 |
| Property, plant & equipment | 1.09 | 1.00 |
| Intangible assets | 7.74 | 7.68 |
| Non-current investments | 0.59 | 0.04 |
| Intangible assets under development | 5.11 | 3.80 |
| Deferred tax assets (net) | 1.16 | 0.76 |
| Other non-current assets | 8.17 | 5.71 |
| Long-term loans & advances | 1.93 | 1.28 |
| Current assets | 59.70 | 48.19 |
| Current Investments | 10.90 | 0.00 |
| Trade receivables | 18.82 | 21.80 |
| Cash & bank balances | 1.29 | 1.27 |
| Short-term loans & advances | 1.40 | 1.58 |
| Other current assets | 27.28 | 23.53 |
| Total Assets | 85.47 | 68.46 |
Debt to Equity reduced from 0.26 in FY18 to 0.21 in FY19
Consolidated Balance Sheet – As on 31st March
| Rs. in Cr | As on 31stMar-19 | |
|---|---|---|
| Shareholders Funds | 60.79 | |
| Share Capital | 9.42 | |
| Reserves & Surplus | 51.36 | |
| Minority Interest | 0.00 | |
| Non Current Liabilities | 6.32 | |
| Long Term Borrowing | 5.67 | |
| Other long term liabilities | 0.01 | |
| Long term provision | 0.65 | |
| Current Liabilities | 17.90 | |
| Short Term Borrowing | 7.07 | |
| Trade Payables | 1.76 | |
| Other Current Liabilities | 8.77 | |
| Short Term Provision | 0.30 | |
| Total Equities & Liabilities | 85.02 |
| Rs. in Cr | As on 31stMar-19 | |
|---|---|---|
| Non-current Assets | 25.22 | |
| Property, plant & equipment | 1.09 | |
| Intangible assets | 7.74 | |
| Non-current investment | 0.04 | |
| Intangible assets under development | 5.11 | |
| Deferred tax assets (net) | 1.16 | |
| Other non-current assets | 8.17 | |
| Long term loans & advances | 1.93 | |
| Current Assets | 59.80 | |
| Current investments | 10.90 | |
| Trade receivables | 18.82 | |
| Cash & bank balances | 1.39 | |
| Short term loans & advances | 1.41 | |
| Other current assets | 27.28 | |
| Total Assets | 85.02 |
Half Yearly – Financial Highlights
| Rs. Cr | H2 FY19 | H2 FY18 | Y-o-Y (%) | H1 FY19 |
|---|---|---|---|---|
| Revenue from Operations | 33.15 | 30.91 | 7.26% | 29.60 |
| Raw material | 3.04 | 2.65 | 1.88 | |
| Employee expenses | 4.90 | 4.16 | 4.94 | |
| Professional fees fortechnical consultants | 11.66 | 11.02 | 10.72 | |
| Other expenses | 4.95 | 3.68 | 4.82 | |
| Total expenditure | 24.55 | 21.50 | 22.36 | |
| EBITDA | 8.61 | 9.41 | (8.51%) | 7.24 |
| EBITDA Margin (%) | 25.96% | 30.43% | 24.46% | |
| Other income | 0.39 | 0.21 | 0.41 | |
| Deprecation | 2.04 | 1.84 | 2.00 | |
| Interest | 0.81 | 1.07 | 0.88 | |
| Exceptional item | 0.00 | 0.00 | 0.00 | |
| PBT | 6.15 | 6.70 | 4.77 | |
| Tax | 1.81 | 2.02 | 1.32 | |
| PAT | 4.34 | 4.68 | (7.22%) | 3.45 |
| PAT Margin (%) | 13.09% | 15.13% | 11.67% | |
| Basic EPS* (in Rs.) | 4.61 | 6.63 | (30.47%) | 3.87 |
- Increase in Revenue from Operations driven by timely execution of orders & increased demand for flagship products - PWIMS & AutoDCR
- EBITDA decline on account of:
- Increase in employees (senior management team, technical, marketing & sales)
- Other expenses invested in additional project implementation costs for timely and efficient execution of growing order book and expansion in overseas markets
32
* In FY19, Company issued fresh Equity shares of ~2.4 mn, which increased total shares from 7 mn to 9.4mn leading to EPS dilution
Way Ahead
Growth Opportunity - Supported by Strong Govt. Initiatives
35
Smart Cities ▪ 100+ smart cities ▪ Potential Market Size (AutoDCR® & PWIMS™) : Rs. 500 Cr AMRUT* Cities ▪ 500+ AMRUT cities ▪ Potential Market Size (AutoDCR® & PWIMS™): Rs. 1,000 Cr Ease of Doing Business (EODB) ▪ 4,000+ ULBs & Corporations. ▪ 1,200 will adopt BPAS in 3 ▪ Market: Rs. 600 Cr RERA ▪ 20% of 14,000 real estate market under process of adopting ERP ▪ Potential Market Size (OPTICON ™): Rs. 560 Cr Digital India ▪ 30% of 500+ public works organizations in 3 years ▪ Potential Market Size (PWIMS ™) : Rs. 750 Cr #PMAY ▪ 2800 cities selected ▪ 20% projects will adopt ERP for execution ▪ Potential Market Size (OPTICON™):
Rs. 112 Cr
Notes: # PMAY refers to Pradhan Mantri AwasYojana
years
*AMRUT refers to Atal Mission for Rejuvenation & UrbanTransformation
36
- Continued investments in R&D
- Innovate new products
- Develop new applications for established products
- Co-development opportunities with strong international Product companies - to create world class product offerings
- Widen customer base by augmenting company reach to enterprises and corporates and international Strategic partners
- Increase product contribution of PWIMS™, OPTICON™ and other upcoming products
- Organic growth Product base and industry offerings, presence & set up across India & overseas
- Inorganic growth International and domestic markets through joint ventures or strategic alliances, strategic Investments or tie ups adding value to existing suite of products, increase wallet share of existing customer, new products, customers & geographies
- International JV's / partnership giving benefit of leveraging assets and resources
Vision 2022 – To become 150+ crore turnover company, via organic growth in domestic and overseas markets, endeavor 30% from International business adding to overall revenue
37
| SOFTTECH | SOFTTECH:INSOTF.NS |
|---|---|
| For further information, please contact: | |
| Company : | Investor Relations Advisors: |
| SoftTech Engineers Limited | Bridge Investor Relations Pvt. Ltd. |
| Ms. Aishwarya patwardhan[email protected] | Ms. Savli Mangle[email protected] |
| Ms. Aesha Shah[email protected] | |