Saksoft Ltd Q1 FY25 Earnings Conference Call Summary
Company Overview
• Chairman Aditya Krishna discussed modest growth amid global IT challenges.
• Reorganized into four high-growth business units:
• Fintech
• Hi-tech Media and Utilities
• Transport and Logistics
• Retail e-commerce
Financial Performance
• Revenue: INR 201 crores (10% YoY, 3% QoQ)
• EBITDA: INR 35 crores
• Net Profit: INR 26 crores
• Americas contributed 42% of revenues.
Growth Targets
• Aiming for INR 1,000 crore top line by FY25.
• Targeting 30% revenue growth.
• Current utilization rate at 85%, expected to remain stable.
Strategic Focus Areas
• Shift towards high-tech, media, and utilities sectors.
• Continued emphasis on fintech, especially in credit, payment, and regulatory technologies.
• Caution advised regarding fintech startups' payment timelines.
Augmento Integration
• Projected revenue of INR 50 crores for FY25 with a 20% margin.
• Smooth integration with existing clients and capabilities in digital product engineering.
Order Book and Sales Strategy
• Current gap of INR 150 crores from the INR 1,000 crore target.
• Recent successes include securing a Fortune 100 client and a fintech customer.
• New sales hires in the U.S. and UK to drive future growth.
Investor Engagement
• Limited institutional interest; ongoing discussions with HDFC and Kotak Securities.
• Need for a structured outreach strategy to attract institutional investors.
Future Outlook
• Management optimistic about achieving an 18% EBITDA target.
• Exploring small acquisitions to enhance capabilities.
• Commitment to engaging with potential investors in Mumbai.
Additional Insights
• Emphasis on the interconnectedness of stock options and company performance.
• Digital engineering accounts for 45% of revenues.
• Aim to position as a comprehensive solution provider in fintech sub-verticals.

Saksoft Limited Q4 FY24 Earnings Conference Call Summary
Key Participants
• Aditya Krishna (Chairman and MD)
• Niraj Kumar Ganeriwal (COO and CFO)
Company Overview
• Digital transformation partner with four business units:
• Fintech
• Hi-tech Media & Utilities
• Transportation & Logistics
• Retail Ecommerce
• Achieved 14% YoY revenue growth for FY24 despite U.S. market challenges.
Financial Highlights
• Q4 FY24:
• Revenues: INR 195 crores (up 7% YoY)
• Net Profit: INR 23 crores (down 7% YoY due to increased taxes)
• FY24 Total Revenues: INR 762 crores
• FY24 Net Profit: INR 96 crores (up 17% YoY)
Future Goals
• Target to increase revenue from INR 761 crores to INR 1,000 crores by FY25.
• Long-term goal of $500 million (INR 4,000 crores) by 2030.
• 90% of revenue expected from existing customers.
Business Strategy
• Reorganized into four verticals, each with a dedicated CEO.
• Focus on investing in people and infrastructure for growth.
• Current EBITDA margins around 18%, with slight fluctuations expected.
Client Concentration and Risks
• 80% of revenue from top 25 accounts, but no single client poses major risk.
• Concerns raised about balancing short-term results with long-term growth.
Sales and Talent Management
• No attrition in the sales team; new hires in key locations (California, New York, London).
• Stock option plan remains attractive for recruiting senior sales talent.
Attrition and Revenue Growth
• Overall attrition decreased to 14% from 22%.
• Future growth expected from Hi-Tech Media, Utilities, and Fintech sectors.
Investments and Capabilities
• Investments in hiring experts and enhancing cybersecurity and cloud operations.
• Cultural shift towards a growth-oriented mindset within the organization.
Client Diversification and Profitability
• Plans to diversify customer base while maintaining ROE and ROCE.
• Aim to improve EBITDA margins over time without compromising profitability.
Impact of AI
• AI generating client interest but limited revenue impact currently.
• Potential for productivity enhancements in coding and recruitment.
Conclusion
• Management expressed confidence in achieving revenue targets and invited further inquiries.

Saksoft Limited Q3 and 9-Month FY24 Earnings Conference Call Summary
Overview
• Date of Call: February 9, 2024
• Moderated by: Purvangi Jain, Valorem Advisors
• Key Management:
• Chairman: Aditya Krishna
• CFO: Niraj Kumar Ganeriwal
Company Performance
• Revenue Growth:
• Q3 revenue: INR 192.84 crores (12.9% YoY growth)
• Net profit: INR 22.54 crores (13.5% increase)
• Market Presence: Strong in the US and Europe with a diverse client base.
• Long-term Goal: Aim to reach USD 500 million in revenue by 2030.
Strategic Focus
• Sales Growth:
• Emphasis on long-term sales growth requiring patience and investment.
• Need for 25% year-on-year growth through organic and inorganic means.
• Investments: Increased hiring costs for sales personnel anticipated.
• Mergers and Acquisitions: Plans to pursue two acquisitions (~$6 million each) focusing on product engineering.
Sector-Specific Insights
• Product Engineering:
• 40% of revenue from product engineering, particularly in fintech, hi-tech, and transportation logistics.
• Profitability:
• Fintech is the most profitable sector, followed by transportation and logistics.
• Geographical Growth: Notable growth in the Asia Pacific region due to US companies establishing centers in India.
Challenges and Future Outlook
• Market Headwinds: Addressed concerns about declining EBITDA margins due to sales investments and reduced billing days.
• Utilization Rates: Seasonal factors and customer furloughs affecting employee utilization, with expected improvement.
• Interest Rate Impact: Anticipated US interest rate cuts may positively influence demand for IT services.
Conclusion
• Engagement: Aditya Krishna expressed gratitude for participant engagement and encouraged further inquiries.
• Call Closure: Moderator thanked participants and concluded the conference.

Saksoft Limited FYQ224 Conference Call Summary
Introduction
• Date: November 8, 2023
• Host: Anuj Sonpal, Valorem Advisors
• Emphasis on forward-looking statements and associated risks.
Company Overview
• Chairman & Managing Director: Aditya Krishna
• Role: Digital transformation partner in sectors like Fintech, Telecom, and Healthtech.
• Achievements:
• 16% year-on-year revenue growth.
• 31% increase in profit after tax.
• 40% interim dividend announcement.
• Achieved "Carbon Neutral" status.
Financial Highlights
• COO & Group CFO: Niraj Ganeriwal
• Q2 Revenue: Rs. 190.41 crores (16.21% YoY increase).
• First Half Revenue: Rs. 373.88 crores (nearly 20% growth).
• EBITDA: Rs. 35.81 crores (18.8% margin).
• Revenue Split: USA (43%), Europe (22%), Asia Pacific and others.
Growth Strategy
• Focus on niche markets: Fintech, Transportation & Logistics, Healthtech, High Tech/Media.
• Competitive advantage through specialized solution accelerators.
• Key growth areas:
• Fintech: Emphasis on Regtech and Payment tech.
• Transportation & Logistics: Increasing demand for compliance solutions.
Engagement Model
• Predominantly time and material-based (95% of work).
• No plans to transition to a product company or hedge fund direct customer acquisition.
• Current market conditions: No significant pricing pushback, slight decision-making delays.
Future Outlook
• Growth primarily expected from the U.S. market in fintech and logistics.
• Target: 20-25% annual growth to reach $500 million by 2030.
• Discussions for potential acquisitions ongoing, but no specific plans disclosed.
Sustainable Growth
• Consistent EBITDA margins despite salary increases.
• 90-95% growth from existing customers.
• Focus on capability over pricing in niche markets.
• Competitors: Local consulting firms, Capgemini, Accenture, Persistent.
Product Engineering Positioning
• Over 50% revenue from application services; significant focus on product engineering.
• Ongoing engagements (95%) provide "sticky" revenue.
• Revenue target: $100 million for FY25, with positive outlook from recent acquisition (Solveda).
Conclusion
• Management expressed optimism about growth in engineering and R&D services.
• Encouraged further inquiries through Investor Relations advisors.

Q1 FY24 Earnings Conference Call Summary for Saksoft Limited
Financial Performance
• Revenue Growth: 24% year-on-year increase
• EBITDA Growth: 54% increase
• Financial Highlights:
• Revenues: INR 183.47 crores
• EBITDA: INR 34.53 crores
• Net Profit: INR 25.15 crores
Strategic Initiatives
• Digital Transformation Services: Focus on sectors like FinTech and e-commerce
• Acquisition: Solveda, a software company specializing in e-commerce applications, aimed at enhancing market presence and EBITDA margins
Future Goals
• Revenue Target: $500 million by 2030
• FY24 Guidance: $100 million, including organic growth and acquisitions
Management Insights
• PAT Margin Target: 14% to 15% for the year, with expected improvements
• Order Book Status: On track to meet $100 million guidance, with 78% to 80% of targets secured
• Growth Strategy: 25% to 30% annual growth required to meet long-term targets
Market Challenges
• Revenue Contribution: Slight decline from top clients due to reduced technology spending in the US and Europe
• Attrition Rate: Decreased to 17% from 24-25% last year
Conclusion
• Management expressed gratitude for investor interest and encouraged further inquiries.

Saksoft Limited Q4 FY23 Earnings Conference Call Summary
Financial Performance
• Annual revenues: INR 666 crores (39% increase YoY)
• Q4 revenues: INR 182 crores (31% increase YoY)
• Operating EBITDA for FY23: INR 108 crores (37% growth, 16% margin)
Strategic Focus
• Emphasis on digital transformation services in sectors like FinTech and telecom
• Successful acquisition of Terafast to enhance capabilities
• Expansion of customer base with an increase in high-revenue clients
Future Growth Outlook
• Management aims for $500 million in revenues by 2030
• Cautious optimism about future growth despite market challenges
Q&A Highlights
• Revenue Growth and Margins:
• Acknowledgment of challenges in the U.S. market
• Confidence in niche-focused strategy to mitigate slowdown impacts
• Minimal customer losses primarily due to market consolidation
• Revenue Targets:
• Ambitious targets: $100 million by 2024-2025 and $500 million by 2030
• Focus on sectors: FinTech, transportation, logistics, health tech, utilities
• Client Concentration and Risks:
• Importance of acquiring new customers to offset risks
• Concerns about potential impacts from a banking crisis
• Generative AI Impact:
• Automation of lower-end coding tasks, but demand for skilled professionals remains
• Margin Guidance:
• Willingness to compromise on margins for growth
• Targeting EBITDA margin of 16% to 18%
• Customer Acquisition Strategies:
• Focus on organic growth with openness to inorganic opportunities
• Expected 20% increase in employee count to align with revenue growth
Employee and Acquisition Strategy
• Annual attrition rate: 22%
• Cash reserves: INR 195 crores, with a strategy for inorganic acquisitions
• Two acquisitions made in the past two years, with optimism for future deals aimed at capability enhancement and EPS accretion
Conclusion
• Aditya Krishna thanked participants and encouraged further engagement.