NINtec Systems Limited Conference Call Summary (June 3, 2024)
Overview
• Date of Call: June 3, 2024
• Submission Date: June 5, 2024
• Participants:
• Chairman and Managing Director: Mr. Niraj Gemawat
• Moderator: Ms. Chandni Chande (Kirin Advisors)
• Purpose: Discuss audited financial results for the year ended March 31, 2024, in compliance with SEBI regulations.
Company Growth and Performance
• Founding and Growth:
• Established nine years ago, evolved from a startup to a leading global technology consulting firm.
• Strong recovery post-COVID-19, transformative growth in the last three years.
• Financial Highlights:
• Q4 FY2024: Revenue increased by 177.9% to INR 32.62 crores.
• EBITDA rose by 190.5%.
• Over 100% returns for shareholders in the past year; 7,000% over three years.
Business Focus and Strategy
• Core Specializations:
• Software development, AI, machine learning, and blockchain.
• 95% of revenue from international clients.
• Future Plans:
• Expand cybersecurity offerings and establish Security Operations Centers in India and the Netherlands.
Employee and R&D Insights
• Workforce Growth:
• Increased from 250 to 400 employees.
• R&D Commitment:
• Engineers dedicate 8-10% of their time to R&D; no capitalization of R&D expenses.
• Training Investment:
• 4% to 4.5% of revenue allocated to training and upgradation.
Financial Management and Risk Mitigation
• Revenue Allocation:
• INR 4-5 crores spent on training and research last year.
• Profit Margins:
• Confidence in maintaining margins due to favorable exchange rates and productivity.
• Risk Management:
• Strategies include a diversified customer base and active treasury functions to mitigate global operational risks.
Innovations and Challenges
• Key Innovations in FY’24:
• Advancements in healthcare IoT, financial market predictive models, and electric vehicle sector.
• Operational Challenges:
• Emphasis on understanding cultural nuances in non-English speaking regions.
• Addressed concerns about high receivables as typical working capital needs.
Strategic Collaborations
• Partnerships:
• Collaborations with major tech companies like Microsoft and Google, especially in cybersecurity.
Conclusion
• Outlook:
• Optimism for future growth and commitment to maintaining a clean balance sheet and talent development.
• Invitation for Questions:
• Call concluded with an open invitation for further inquiries.