SoftTech Engineers Limited — Investor Presentation 2024

Oct 21, 2024

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Date: October 21, 2024

To,

National Stock Exchange of India Limited BSE Limited “Exchange Plaza”, C-1, Block – G Floor 25, Phiroze Jeejeebhoy Towers Bandra – Kurla Complex Dalal Street, Bandra (East), Mumbai – 400051 Mumbai – 400001 Symbol: SOFTTECH Scrip Code: 543470

Dear Sir/ Madam,

Subject: Intimation of Knowledge Session and Investor Presentation

In accordance with the applicable requirements and regulations of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and other applicable Regulations, if any, we hereby inform you that the Company has scheduled knowledge Session for Investors organised by Go India Advisors on Thursday, October 24, 2024.

The Investor Presentation that will be presented in the session is attached herewith.

The above schedule is indicative and is subject to changes necessitated by any unforeseen developments.

The Company will be referring to publicly available documents for discussions during interaction in the meeting and no unpublished price sensitive information (UPSI) is intended to be discussed during the interaction.

This intimation is also being uploaded on the Company’s website at https://softtech engr.com/disclosure-underregulation/.

Kindly take the above on your record and acknowledge the receipt.

Thanking You,

Yours faithfully

FOR SOFTTECH ENGINEERS LIMITED

SHALAKA SATISH KHANDELWAL Digitally signed by SHALAKA SATISH KHANDELWAL DN: c=IN, st=Maharashtra, 2.5.4.20=0ff52ac746976b289e76b59faf4c2c77a579869546f239207296924c081dfadb, postalCode=411041, street=FLAT NI D 1 902 GANGA BHAGYODAY SINHAGAD ROAD NEAR MANIBAUG PETROL PUMP PUNE CITY, pseudonym=a3f3c8b1a309141bf53ca4a8e87f6505, serialNumber=c5a400455bb9bb1178c59c80eca2f9d073b1d9c24f53ed346dd20b5d646eb970, o=Personal, cn=SHALAKA SATISH KHANDELWAL Date: 2024.10.21 13:43:29 +05'30'

SHALAKA KHANDELWAL COMPANY SECRETARY

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Investor Presentation October 2024

Disclaimer

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This presentation and the accompanying slides (the “Presentation”), have been prepared by SoftTech Engineers Limited (the “Company”) solely for information purposes and do not constitute any offer, recommendation, or invitation to purchase or subscribe to any securities and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

Certain statements in this presentation concerning our future growth prospects are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The Risk and uncertainties relating to the statements include but are not limited to, risks and uncertainties regarding fiscal policy, competition, inflationary pressures, and general economic conditions affecting demand/supply and price conditions in domestic and international markets. The Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable. This Presentation not be all-inclusive and not contain all the that consider material. may may of information you may Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. The Company does not make any promise to update/provide such a presentation along with results to be declared in the coming quarters and years.

2

Table of Contents

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|||
|---|---|
|5-13|Company Overview|
|15-21|Q1FY25 Performance|
|23-27|Business Overview|
|29-31|Historical Performance|
|33-36|
|Industry Overview|

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3

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Company Overview

SoftTech – Dominant Civil-Tech Product Company

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Creating cutting-edge SaaS products for the architecture, engineering, and construction (AEC) sectors with over 80% of market share in India in its domain

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Established in 1996, 25+ years in AEC Industry

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Presence across US, UK, Middle East and Singapore

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7+ products & solutions 20,000+ License users

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500+ Employee;
expertise in product R&D
ISO Certified
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18+ Indian state governments
600+ Serving clients
Listed on BSE & NSE Main
Board in 2022
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5

25 years of Developing Intellectual Property

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Solutions Monetized & IP Sold Current Solution Portfolio
1996 2000 2007 2008 2009 2019 2020 2022 2023 Future
•Green Building
Visibility in
Permits
Overseas
•Energy
Market in
Management
terms of
Solutions
Revenue
•IoT based Central
Water
Management
STRUDS AutoDCR OPTICON RuleBuddy System
Launch of Civit
Solution Suite
SEPL-ESRGSR PWIMS BIMDCR
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6

Civit Platform – Full Stack Solution for AEC

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All-in-one AI-powered application suite for Government, Architects, Builders/Developers and Contractors.

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PLANNING
Automated AI-powered accurate and fast plan
Digital twin related solution to help visualize and
compliance check and variance reporting
direct tactile interaction with assets as well as physical
solution
intelligence
COMMON DATA &
INTELLIGENCE
CLOUD
PLATFORM
Integrated business and construction solutions for PROCUREMENT Permit management and compliance
developers and contractors validation solution
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Public infrastructure work management solution

7

Presence Across Value Chain

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Catering to all Aspects of the Real Estate, Construction, and Infrastructure Industry.

Public Sector Infrastructure/Real Architects/C Government Contractors Companies Estate Companies onsultants CivitPERMIT CivitPLAN CivitBUILD CivitINFRA CivitOPERATE Energy & Sustainability Services

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8

Dominant India Presence – Going Global

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Harnessing the market potential within the nation and worldwide.

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Jammu MC
(AutoDCR)
Uttarakhand PWD
Punjab PWD
(PWIMS) Ghaziabad
(PWIMS) Assam State Govt order
Development
(AutoDCR)
Authority
Jaipur Development
(PWIMS)
Authority (AutoDCR),
(PWIMS) PWD West Bengal
(PWIMS)
Gujarat State Order
(AutoDCR) Mizoram PWD
(PWIMS)
Mumbai Municipal
Corporation Jharkhand State order (AutoDCR)
(AutoDCR) MPUIIP (AutoDCR)
Pune Municipal Corporation
(AutoDCR) Telangana State Govt order
(AutoDCR)
Andhra Pradesh
MIDC (AutoDCR & PWIMS)
state order (AutoDCR)
Chennai Municipal
Kerala State Order (AutoDCR)
Corporation (AutoDCR)
Municipal/local
order
State wide order
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USA UK
Establishment in Place Strategic account in
and POC in progress Finland secured with
partner
Singapore
Middle
East
Few strategic accounts Few strategic accounts
established. opened in EMEA.
Structured expansion Establishment in Place -
plan in motion Team Hired
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9

Profit Driven Growth Strategies

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Our strategy is supported by three pillars - scale up, innovation and transformation

Make Tech

Civit Suite –Plan, Permit , Build, Infra Civit OPERATE Civit CORE BtrLyf – Building Energy Management

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Integrate/Grow Current Plays

Scale SoftTech Globally Grow all units with internal portfolio projects as well as external partnerships, e.g. Blackstone

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Merge, Acquire and Scale

Merge:

Civit holds the key to built environment data lake by being the CDE for a unified platform and having sufficient global presence at this stage for global SaaS selling. Key partners entities would be merged or acquired as needed for setting up growth plans/targets.

Buy/Use Tech

Build Services Capability

Scale:

Autodesk Suite – BIM 360, Forge Dassault Systems - 3D Experience IES - Operational DT

Build service and with support team in India to support SaaS delivery as well as take on project advisory or associated services

Integrated sales and marketing effort can quickly start adding users to each platform to build revenue, margins and thus future cash flows for much higher overall valuation. Acquire missing links where needed

10

Strategic Investment Framework

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Comprising of Annuity & Pay Per Use
Diversified Revenue Mix
Model
Innovative Products & customized for
Niche Products & Services
AEC space
What Sets us Apart Strategic partnerships with tech
Collaborating with Latest
giants to deliver cutting edge
Technology
products & services
Penetrating domestic & international
Expanding Footprint
regions to cater to diverse markets
Customer Centric Delivery Customizations according to
Model customer’s needs
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11

Technocrat Leadership

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Pratik Patel
Whole Time Director
10+ years of experience of
handling managerial
assignments in software dev
and real estate business
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Vijay Gupta
Founder, Chairman & MD
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Priti Gupta Whole Time Director With 12+ years' experience in business processes and management. Oversees training, HR & Admin operations.

IIT Mumbai alumnus, firstgeneration entrepreneur. 29+ years' experience in CAD/CAE software development.

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Mr. Yogesh Desai Independent Director

Sundararajan Srinivasan Dr. Rakesh K Singh Independent Director Independent Director IIT Bombay Master's, 31 years Post Grad Physics (Pune Senior Professor at IIT Bombay with 41 of global innovation in Univ.), Comp Science & Engg years in Structural Engineering, computing, communication, (IIT Mumbai). 30+ years exp Computational Mechanics, and Technical and control. in Bigdata, Machine Vision etc Software Development.

Sridhar Pillalamarri Independent Director

B.Tech (IIT Kharagpur), M.Tech (IIT Powai). 30+ years of management experience

12

Roadmap to FY2027 – 3x in 3 years

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Leadership in BIM Based cloud Permit system in the world Create No. 1 integrated AEC vertical platform connecting Government, Private Enterprises, & Citizens Expand into various geographies specifically 25 counties & cities in US Reach $25mn Annual Topline with 40%+ EBITDA Margin

13

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Q1FY25 Performance

Q1FY25 Performance Highlights

Domestic Business

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A work order valued at Rs 19 Cr has been received from M.P. Road Development Corporation Ltd.

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Strategic Collaborations

• The company has established strategic channel partnerships in both the UAE and Malaysia

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International Business

Secured the first order for Civit Build from UECC in the UAE and established a strong sales pipeline, with expected results to materialize this year.

Successfully implemented the order and deployed the sales process effectively, with anticipated results in the second half of the current financial year.

Penetrating Newer Markets

• The company is exploring new opportunities in emerging markets such as Malaysia and Oman

15

Q1FY25 Financial Snapshot

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Revenue - Revenue EBITDA - EBITDA was
stood at Rs. 1,974 lacs; Rs.691 lacs; up 28.7% YoY
up 4.90% YoY
Profit After Tax -
-
Standalone PAT was Order Book ₹ 166.25 Cr
Rs.159 lacs, up 42.2% Orderbook Q1FY25 Performance
YoY (Consolidated)
Q1FY25 Performance
Revenue - Revenue EBITDA - EBITDA was
(Standalone) stood at Rs. 1,975 lacs; Rs.601 lacs; up 26.4%
up 5% YoY YoY
Profit After Tax - -
Order Pipeline ₹ 137.83 Cr
PAT was Rs.57 lacs ; up
Pipeline in India going forward
13.2% YoY
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16

Q1FY25 Financial Performance

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Revenue from Operations

EBITDA & EBITDA Margin (%)

PAT & PAT Margin (%)

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Standalone
Consolidated
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691
537 159
112
35%
29%
8%
6%
Q1FY24 Q1FY25 Q1FY24 Q1FY25
601
476
57
50
30%
25%
3% 3%
Q1FY24 Q1FY25 Q1FY24 Q1FY25
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1,974
1,881
Q1FY24 Q1FY25
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1,975 601
476
30%
25%
Q1FY25 Q1FY24 Q1FY25
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1,881
Q1FY24
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(₹ in Lacs unless otherwise specified)

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Quarterly Revenue Mix

Nature of Revenue Mix

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998
976
963
918
Q1FY24 Q1FY25
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Product Wise Revenue Breakup

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374
364
131
56
1,461 1,468
Q1FY24 Q1FY25
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AutoDCR

PWIMS Others

One Time License Model Recurring Model

(Standalone nos. in ₹ in Lacs)

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Annual Revenue Mix

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Nature of Revenue Mix

Product Wise Revenue Breakup

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4,022
3,840
3,454 3,549 1,750
2,985 1,197 265
1,038
2,373
2,292 1,263
470
589
581
5,847
1,275
4,237 4,074
2,988
FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24
One Time License Model Recurring Revenue AutoDCR PWIMS Others
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(Standalone nos. in ₹ in Lacs)

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Quarterly Standalone Income Statement

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Particulars (₹ Lacs)	Q1FY25	Q1FY24	YoY	Q4FY24	QoQ
Revenue from Operations	1,974	1,881	4.9%	2,274	-13.2%
Total Expenses	1,283	1,344	-4.6%	1,615	-20.6%
EBITDA	691	537	28.7%	659	4.9%
EBITDA Margin (%)	35%	29%	----	29%	----
Other Income	52	57	-8.7%	89	-41.5%
Depreciation & Amortization Expenses	400	327	22.3%	351	13.9%
Finance Cost	127	120	5.8%	110	15.4%
Profit Before Tax	216	146	47.9%	287	-24.7%
Total Taxes	57	35	62.8%	72	-20.8%
Profit After Tax	159	112	41.9%	214	-25.7%
PAT Margin (%)	8.0%	5.9%	----	9.4%	----
Diluted EPS (₹)	1.24	1.0	24.0%	1.67	-25.7%

20

Quarterly Consolidated Income Statement

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Particulars (₹ Lacs)	Q1FY25	Q1FY24	YoY	Q4FY24	QoQ
Revenue from Operations	1,975	1,881	5.0%	2,236	-11.7%
Total Expenses	1,374	1,405	-2.2%	1,650	-16.8%
EBITDA	601	476	26.4%	586	2.6%
EBITDA Margin (%)	30%	25%	---	26%	---
Other Income	38	57	-32.1%	64	-39.8%
Depreciation & Amortization Expenses	400	327	22.2%	351	13.9%
Finance Cost	127	120	5.9%	110	15.6%
Profit Before Tax	112	85	32.2%	188	-40.3%
Total Taxes	55	35	59.8%	65	-15.3%
Profit After Tax	57	50	13.2%	123	-53.6%
PAT Margin (%)	3%	3%	---	5%	---
Diluted EPS (₹)	0.50	0.49	2.0%	0.99	-49.5%

21

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Business Overview

Customer Centric Delivery Model

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With deep domain expertise in construction management software, SoftTech provides tailored solutions for business success.

Collaboration with Latest Tech

Leverage on several partnerships with industry leaders to bring the best-in-class solutions 1 4 2 Sustainable Services Unparalleled advantage in serving the built 3 environment driven by our deep understanding of the domain

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Customized Products Customize and deploy Civit Suite of solutions based on the requirements of Clients

Deep Domain Expertise

Cloud and IT expertise to strategize, plan, develop/implement and maintain any technology solution that will aid in Client’s goals

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Robust Revenue Model

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SaaS (Login based) - $ per user
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SaaS (Use based) - $ per permit
&
$ per Sq. Ft annual review
charges
SaaS (Login Based) - Per module
per user/month
&
Bundle price per user/month
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Overseas Revenue Model

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RuleBuddy

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SaaS (Login based) – One time login & ₹ per Sq. Ft approval

SaaS (Use based) – Fixed Revenue & ₹ per Sq. Ft annual review charges SaaS (Login Based) – Depending upon the area ₹ per Sq. Ft

India Revenue Model

24

Services Portfolio - Expert Energy Modeling, Management & Sustainability Solutions

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25

Rising Global Expansion and Technology Alliances

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TECHNOLOGICAL PARTNERS

CENTER OF EXCELLENCE

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We are passionately dedicated to empowering global clients with the latest technology.

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26

Facilitating Growth through Mentoring & Scaling Up via Inorganic Acquisitions

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SoftTech undertook Inorganic Acquisitions by partnering with Domain Experts

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Hybrid Corporate program to support AEC startups. Incubated 12 AEC startups, evaluated over 300+, arranged 3 Bootcamps of over 40 start ups each. It holds great growth potential to drive innovation.

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Tech partners and investors in Btr Lyf Solution, an AI-based cloud platform offering Building Energy Management Solutions. Based in Singapore, with investments from Singapore Govt. and HNIs

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Historical Performance

Annual Financial Charts

EBITDA & EBITDA Margin (%)

Revenue from Operations

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7861
6534
5746
4157
FY21 FY22 FY23 FY24
Standalone
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33%
31%
29%
28%
2,473
2,128
1,627
1,218
FY21 FY22 FY23 FY24
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30%
7878 27%
27%
26%
6540
5746
4157
2,135
1,938
1,527
1,097
FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24
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PAT & PAT Margin (%)

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10%
697
580
578
378
9% 9% 9%
FY21 FY22 FY23 FY24
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8%
6% 6%
4%
465
362
332
258
FY21 FY22 FY23 FY24
(₹ in Lacs unless otherwise specified)
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Standalone Annual Income Statement

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Particulars (₹ Lacs)	FY21	FY22	FY23	FY24
Revenue from Operations	4,157	5,746	6,534	7,861
Total Expense	2,940	4,119	4,407	5,388
EBITDA	1,218	1,627	2,128	2,473
EBITDA Margin (%)	29%	28%	33%	31%
Other Income	102	197	171	262
Depreciation & amortization expenses	550	764	1046	1,343
Finance Cost	239	286	392	456
PBT	531	774	861	936
Total Taxes	152	196	281	239
Profit After Tax	378	578	580	697
PAT Margin (%)	9%	10%	9%	9%
Diluted EPS (₹)	3.99	5.89	5.48	6.17

30

Consolidated Income Statement

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Particulars (₹ Lacs)	FY21	FY22	FY23	FY24
Revenue from Operations	4,157	5,746	6,540	7,878
Total Expense	3,060	4,219	4,602	5,742
EBITDA	1,097	1,527	1,938	2,135
EBITDA Margin (%)	26%	27%	30%	27%
Other Income	102	186	143	229
Depreciation & amortization expenses	550	764	1,046	1,344
Finance Cost	239	287	393	456
PBT	410	661	643	564
Total Taxes	152	196	281	232
Profit After Tax	258	465	362	332
PAT Margin (%)	6%	8%	6%	4%
Diluted EPS (₹)	2.90	4.88	3.78	3.17

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Industry Overview

US Construction market size is approx. $1.6 trillion, growing at 6% CAGR till 2026

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Key Numbers & Insights

New construction put in place in the United States from 2014 to 2021, with forecast until 2026[2 ] (Values in US$ Millions)

• Global construction industry size is ~ $10 trillion (2022)[1]

• Expected to grow to $13.9 trillion by 2037 with over 51% accounted from China, India, and United States[1]

• New construction in Year 2021 is $1.6 trillion (7% of US GDP) and is expected to grow at ~ 6% YoY till 2026[2]

• Three major segments in the construction industry – Non-Building (17% share), Non-Residential (34% share), and Residential (49% share)[2]

• Residential and Non-Building segments growing at 7% YoY in the next 5 years.[2]

• The top 5 states in terms of construction spending are California, Texas, Florida, New York and Illinois contributing > 50% of the total construction spending. The growth rate in these states is ~ 5 to 12%[2]

• The average gross profit margin in the construction industry was around 28% Q3 of 2022 and typical net profit margins are around 4-6%[3]

• The number of workers in the construction market is ~ 8.0 million (Year 2023)[4]

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Non-building - Power facilities, highways, sewage, water supply,
and conservation work
Non-Residential - Lodging, offices, commercial buildings, health
2,500 care, and education
Residential - Single-family, multi-family housing, and home
improvements
2,000
1,500
1,000
500
0
2014 2015 2016 2017 2018 2019 2020 2021 20222023202420252026
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1Global Construction Futures, Oxford Economics 2023. The Oxford Economics estimates the US construction market to be around USD 1.4 trillion. However, the US construction market size was considered based on US specific reference 2US Census Bureau Data

3https://www.levelset.com/blog/us-construction-statistics-you-need-to-know/

• 4US Bureau of Labor Statistics. https://fred.stlouisfed.org/series/USCONS

33

Technology adoption is low relative to other industries, but growing fast

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Key Numbers & Insights

Formal Software in Place for the following[3]

• Gaps in adoption of digital solutions for several aspects within construction management

• According to its 2022 10-k filings[1] , Procore believes that the construction management software market is evolving rapidly, but it is still in its early stages.

• Many construction companies still rely on manual paper-based methods instead of using technology

Low Digital Capabilities[2]

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Project Financials
68% 17% 15%
(e.g. change orders,
forecasting budgets, sub-
contractors and client invoices
etc.)
Project Management 58% 26% 16%
excluding project financials. eg
EFIs, submittals, drawing
markups, etc)
55% 30% 15%
Safety Risk Management
Equipment Management 48% 35% 18%
Field/Labor Management 47% 36% 16%
Yes No I Don't Know/Unsure
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• 1Procore Form 10-k US SEC December 31, 2022

• 2SmartMarket Brief: Digital Capabilities in US Civil Construction, Dodge Data & Analytics and Bentley Systems, Year 2020

• 32020 FMI Industry Report

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Technology spend in construction industry shows huge head room to

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grow

Key Numbers & Insights

• Multiple data sources indicate the overall IT spend for Architecture, Engineering, & Construction (AEC) companies is pegged at 0.25-3% of revenue

• According to Gartner the AEC software spend is 1-2% vs. 3-5% avg. across other industries[1]

• According to JB Knowledge, the IT spend in over 90% of the construction companies in the United States varied between 0.25% to 3%[2]

• According to McKinsey, an estimated $50 billion was invested in AEC tech between 2020 to 2022, 85 percent higher than the previous three years[3]

• According to Gartner, approximately 20%[4] of the IT spend corresponds to software

• Approx. 35-45% of this software spend corresponds to construction management software

Percentage of Annual Sales Volume Spent on IT

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0.25% to <1.0% 33%
1% 25%
2% 17%
3% 16%
>3% 9%
0% 5% 10% 15% 20% 25% 30% 35%
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• 1‘Gartner top strategic technology trends for 2022’, Gartner, October 2021

• 2JB Knowledge, The annual construction technology report 2021 https://contechreport.com/

• 3From start-up to scale-up: Accelerating growth in construction technology, McKinsey & Company May 2023

Worldwide IT Spending Forecast (millions of USD)[4]

Construction management	2023 Spending 2023 Growth (%) 2024 Spending 2024 Growth (%)
	Data Center Systems 217,880 -1.5 235,530 8.1
	Devices 700,023 -8.6 748,150 6.9
	Software 922,745 13.7 1,052,956 14.1
	IT Services 1,420,905 8.8 1,585,373 11.6
	Communications Services 1,461,662 2.7 1,517,877 3.8
	Total 4,723,215 4.3 5,139,886 8.8
	Category Percentage Cost Range
	BIM and Design 15% - 25%
	Project Management, Bid, and Scheduling 15% - 25%
	Estimating and Takeoff Software 10% - 20%
	Quality & Field Management 5% - 10%
	Safety and Compliance 5% - 10%
	Document Management and Collaboration Tools 5% - 10%
	Accounting and Financial Software 10% - 15%
	Human Resources and Workforce Management Software 5% - 10%
	Others 2% - 5%

• 4https://www.gartner.com/en/newsroom/press-releases/2023-07-19-gartner-forecasts-worldwide-it-spending-to-grow-4-percent-in-2023

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Construction Industry in India

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The construction industry in India is one of the fastest growing in the world and is positioned with China, USA, UK, and Indonesia in the top five global construction markets.

India's Real Estate Market (US $ Billion)

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1000
650
120
2017 2025F 2030F
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Market size of Indian IT industry (US$ billion)

IT Spends in India (US$ billion)

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19.93
24.38 24.45 24.7
22.04
20.57
19.21
14.36
12.63
11.25
6.96
H12021 2025 2021 2022 2023
Software IT Services Communication Services
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According to international reports, this industry is expected to touch $1 tn by 2030. Despite COVID-19 & geopolitical challenges, the sector remains the second-largest contributor to India's economy.

In 2022, India invested over $109.6 billion in its information technology sector. Projections suggest that by 2024, this spending will exceed $112 billion. The IT-BPM industry played a crucial role, contributing around 7.4% to the nation's GDP and generating nearly $194 billion in revenue in the 2021 fiscal year.

(*forecasted values)

Source: www.grantthornton.in, www.ibef.org , www.statista.com/

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THANK YOU

Company Contact:

SOFTTECH ENGINEERS Limited Contact: +91 20 67183711 Email: enquiries@softtech-engr.com

Investor Relations Contact:

Priya Sen Go India Advisors priya@GoIndiaAdvisors.com M:+91 83348 41047

Sana Kapoor Go India Advisors sana@GoIndiaAdvisors.com M:+91 81465 50469

Sheetal Khanduja Go India Advisors

sheetal@GoIndiaAdvisors.com M:+91 97693 64166

For further information on the company, please visit – https://softtech-engr.com/