Q2FY16 / INVESTOR PRESENTATION

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Transcription:

Q2FY16 / INVESTOR PRESENTATION Nov 2015

CTE helps organisations seeking to realize their business potential to capture new enterprise value by leveraging the convergence of big data and the cloud.

WE BELIEVE... 1 2 3 4 BIG DATA AND THE CLOUD ARE GAME CHANGERS transforming how businesses are defined, designed and delivered and enterprise value is captured. THE TREND IS ACCELERATING with 90% of the world s data having been created in the past 2 years and growing 40% annually. A GLOBAL RESOURCE SHORTAGE FUELS OPPORTUNITY with an estimated shortage of 1.5M managers/analysts and 200K data scientists in the U.S. by 2018. COMPANIES SEEK END-TO-END PARTNERS which CTE through its services, partnerships and experienced team is uniquely positioning to deliver. Sources: IBM, Mckinsey Global Institute, IDC

Our end-to-end services APPLICATION SERVICES Development & Maintenance Migration & Transformation Testing Mobility CLOUD SERVICES Cloud Strategy Transformation Migration SaaS Development BIG DATA SERVICES Architecture, Design Cluster Setup and management Enterprise Data Warehouses Descriptive, Predictive, Prescriptive, Analytics Applications MANAGED SERVICES Proactive Monitoring Automation Cloud Infrastructure management

2 Year business plan USD 1 Million in revenue/month by March 2016 USD 2 Million in revenue/month by March 2017

Business plan pillars 1 2 3 BUILD PARTNERSHIPS In first 6 months of current fiscal, forged partnerships with leading technology innovators (Oracle, Rackspace, Amazon) GET VERTICAL CUSTOMERS Focus on referenceable clients across target verticals REACH OPTIMAL SCALE Recruit talent pool to support growth to USD 2M of revenue per month Target to double employees from 250 to approximately 500 by Mar 2017 Investing in training to build core foundation

Partners for growth & differentiation ENTERPRISE SOLUTIONS CLOUD COMPUTING LOAD TESTING & MONITORING IDENTITY MANAGEMENT SOFTWARE ANALYTICS MANAGED CLOUD DATA VISUALIZATION

Vertical focus Energy Utilities Life Science Pharma Industrials BFSI Infrastructure Retail 2015 Cambridge Technology Enterprises. All rights reserved

Geographic focus US Mid-West India 2015 Cambridge Technology Enterprises. All rights reserved

Key Clients Emphasis on mid-west region of the US has yielded big benefits. Apart from US, we have also laid importance on India. Contracts from leading companies in industries from shipping, infrastructure, textiles, manufacturing, to banking and finance.

Leadership Aashish Kalra,Chairman Aashish Kalra is a pioneering equity investor in Technology, Infrastructure, Real Estate, Energy, Logistics and Hospitality. Earlier as a co-founder of Cambridge Samsung Resources, a leading Systems Integrator, he concluded successful partnerships with Hewlett-Packard, Marubeni, NEC and other global 1000 companies. As the Chairman, he foresees the global operations of CTE, providing strategic vision and leadership to the company. Aashish holds a Master s degree in International Finance from Brandeis University, Waltham, USA. Sudip Kar, VP Delivery Sudip Kar heads the delivery and client management at CTE. Prior to joining CTE, he was a founding member of a USA based start-up and successfully merged its technology with a French conglomerate. Over his 20 years of experience in the IT industry, Sudip worked in India as well as USA for various companies like HCL, HP and Delsoft. Sudip holds a degree in Computer Science and Engineering from Jadavpur University. Dharani Raghurama Swaroop, Whole Time Director D.R.R. Swaroop heads the overall operations in India and is specifically responsible for all the corporate governance and statutory compliances-related aspects of CTE. Prior to his association with CTE, Swaroop co-founded a successful IT systems integration company of more than 150 personnel. Swaroop holds an Electrical Engineering degree from JNTU. Nitin Tyagi, VP Enterprise Solutions Nitin Tyagi heads the technical delivery of enterprise products. He has over 15 years of professional global experience in the software industry and successfully led multiple consulting, client services, sales and delivery roles. Prior to CTE, Nitin led engineering, development, & commercial production efforts for Zintech Holding, B.V., Netherlands. Nitin holds Masters in Computer Sciences. T.V. Siva Prasad, CFO and Secretary T.V. Siva Prasad has 15+ years of experience in accounting, finance and compliance. He has contributed in reputed companies such as Tata Projects Ltd., Dr. Reddy s Laboratories, United Breweries and Tech Mahindra. Siva is a qualified Chartered Accountant, an associate member of the Institute of Company Secretaries of India and holds an Executive PG Diploma in Management from Indian Institute of Foreign Trade. Rajesh Krishnamoorthy, Head of Information Technology Rajesh Krishnamoorthy has 20 years of experience spanning technology, account management, presales and product development. He specializes in integration, open source product architecture, development and solution architecture as well as managing Big Data engagements. Raj is an alumni of CTE, having earlier worked in Cell Exchange. Raj's educational background includes a BE & an MBA.

Results Q2FY16 H1FY16

Consolidated Income Statement Particulars (In INR Cr) Q2FY16 Q2FY15 Y-o-Y % H1FY16 H1FY15 Y-o-Y % FY15 Operating Income 15.44 7.37 110% 29.44 14.06 109% 32.26 Other Income 0.39 0.26 0.72 0.31 1.02 Total Income 15.83 7.63 30.16 14.36 33.28 Expenditure Employee Costs 7.41 5.07 14.58 9.86 19.20 Other Operating Exp 5.36 2.05 9.60 3.78 7.34 EBITDA 3.06 0.52 493% 5.99 0.72 726% 6.73 EBITDA Margin 19.3% 6.8% 19.8% 5.0% 20.2% Depreciation 1.38 0.14 2.76 0.28 3.09 Finance Costs 0.11 0.00 0.11 0.00 0.00 PBT 1.56 0.38 3.11 0.45 3.65 Tax Expenses (1.24)* 0.12 (0.89) 0.35 0.52 PAT 2.79 0.25 1013% 4.00 0.09 4189% 3.12 PAT Margin 17.6% 3.2% 13.2% 0.1% 9.3% EPS (INR) 1.43 0.13 2.04 0.05 1.59 * In compliance of Accounting Standard on Deferred Taxes, considering increased visibility of profits, the Company has decided to recognize Deferred Tax Assets of INR 4.3 cr arising out of carry forward tax losses. Of the above INR 4.3 cr, INR 1.8 cr was recognised in second quarter and the balance INR 2.5 cr to be recognised in the remaining two quarters of the financial year 2015-16.

Consolidated Balance Sheet Particulars (In INR Cr) As on 30 Sep 2015 31 Mar 2015 EQUITY AND LIABILITIES Networth 33.43 28.92 Non Current Liabilities & Provisions 1.55 0.68 Current Liabilities & Provisions 9.08 3.95 Net Deferred Tax Liability (1.26) (0.02) Total Liabilities 42.80 33.52 ASSETS Net Fixed Assets 16.75 15.37 Non Current Investments 2.12 - Long Term Loans and Advances 4.55 1.88 Current Assets: Trade Receivables 10.33 7.75 Short Term Loans and Advances 0.47 0.48 Other Current Assets 4.02 3.90 Other Non Current Assets 3.14 2.18 Cash and Cash Equivalents 1.39 1.96 Total Assets 42.80 33.52

Revenues INR Cr Highlights 29 7 110% 15 14 109% Q2FY15 Q2FY16 H1FY15 H1FY16 EARLY IN OUR PLANS We are SUB SCALE & growing from a low base. We believe that scale is somewhere near revenues of USD 2 Mn p.m. and are focused to deliver our 2 year business plan EBITDA INR Cr 5.9 0.5 Q2FY15 Q2FY16 H1FY15 H1FY16 0.3 493% 1013% 3.1 2.8 PAT INR Cr 0.7 0.1 726% 4189% 4.0 Q2FY15 Q2FY16 H1FY15 H1FY16 SCALING OPERATIONS We will continue to invest dollars and man-hours in recruitment & training. This effort is to build the talent for core foundation of growth NOTE Recognition of Deferred Tax Assets amounting to INR 1.8 cr in Q2FY16, resulted into tax benefit and subsequently higher PAT

Highlights With continued significant value creation, we target to be a dividend paying company by FY16.

Takeaways Strong First Step Started in Jan 2015 on a low base, Focused on achieving our target of USD 2 Mn p.m. revenues by Mar 17 Stable Leadership Increased focus on customers, partners, delivery and scaling Depth of Offerings Focus on convergence of big data and the cloud Geographic Focus Service mostly global fortune 500 companies based in the U.S. Investing in Talent From 250 to 500 superior employees Investment in recruitment and training top priority

Safe Harbor This presentation and the accompanying slides (the Presentation ), which have been prepared by Cambridge Technology Enterprises Limited (the Company ), have been prepared solely for information purposes and do 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 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. 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.

GRACIAS MERCI OBRIGADO ARIGATO THANK YOU ctepl.com @CTEofficial LinkedI n: CTE / @aashishkal ra LinkedIn: aashishkal ra Contact: Hanumant Bhansal i Manager Corporate Finance & Head - IR T: +91-40-40234400 E: hbhansal i@ctepl.com DANKE GRAZIE XIEXIE TODAH