Intense Technologies Concall Summary Q3FY17

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Financial highlights

Intense tech Q3FY17 financial performance
  • Revenue for the year is 53.76 crore, EBITDA of 18.47 crores,  PAT of 11.12 crores
  • UniServe product has come into the Gartner Magic Quadrant in the niche category, this will help the company to penetrate into the European & US markets
  • Receivable constitute 60% of sales because most of the customers are large marquee customers & their payment terms are very high. The time lag is anywhere between 90 to 120 days after invoice. Making efforts to improve debtors
  • In the Nigerian market, the receivable are 120 to 150 days
  • GDPR is a good opportunity for the company in European market. It is basically regulation which has come into place in Europe & the deadline is 25/05/2018, within which compliance to the same has to the same. The market size is between 800 million to 1.2 billion as the market size.
  • The sale from services account are 55-60% & 40-45% is from licenses. Service margins are pretty good.
  • Old customers who are even 4-5 years continue to generate income. This typically is around 25-30% per annum. In some places a little higher also depending upon if operation support handling also is included.
  • AMC includes product upgrades, which are minor upgrade. For major upgrades charges are levied
  • Capex done for the BSNL is 7.6 crores
  • Depreciation is high for the year & it will be written off in 3 year period
  • Tax level has gone up & on moving to SEZ, the tax will come down in the coming year
  • Tikam Sujan & C K shastri are promoters of the company & have been here for 18 years & have continuously increased the promoters share which is around 35.4% including both of them
  • Employee cost has not increased due to increase in R&D
  • One of the large European Customer for 21 countries has directly signed with the company. Working on large system integrators
  • No of employees are about 432
  • Companies like Pitney Bowes & HP Exstream are competitors . On B2B corpsales, oracle is the biggest competitor
  • License revenue is around 45-55%. 55% is from services & 45% is from license
  • Significant expenditure is made in sales & marketing. Want to increase brand value across geographies.
  • The company is launching new platform Uniserve NXT in the coming quarter
  • Expenditure would be around $1-2 million
  • No dividend because need to grow business.
  • Consistency of revenue was biggest problem but now consistently been able to get revenue from existing customers on a quarter on quarter basis in a much better situation. Much better position now
  • Deal value depends on size of the organization & pricing depends on the geography. Last year company got deal which was $1million in license & about 500,000 in services. Customers continue for the lifetime. 15% AMC earning
  • R&D expenses are totally expensed out
  • Employee cost constitute 80% of total cost. R&D is about 20% of employee cost.
  • Tax is more than 30%. Listing on NSE is on its way & under process
  • Salesforce provides boutique solutions from the cloud & are focused on CRM. Salesforce is more of data provider than competition

Company products

  • The software by the company will take care of digital customer onboarding, the customer analytics & customer billing & metering accuracy.
  • Digital communication called EBBP, ebills & B2B analytics at a high level
  • There company pays in basically in there 4 quadrants of Acquire, Analyze, Engage, & Experience. This is the customer life cycle.
  • Close to 80% of share in Indian telecom
  • Leaders in Insurance & have customers in over 35 countries
  • Significant progress in Europe & signed a very large operator for 21 country pricing agreement
  • Uniserve is the company’s product & have filed patent & have got accolades from Forrester, Gartner, IBM & Nasscom
  • Products which are competing are Kofax, & Opentext. In billing & metering accuracy there are companies like Doc1 & HP Exstream, Streamserve as competitors
  • UniServe NXT is a platform which can deliver very agile delivery of a large enterprise scale application. It has incorporation of robotic process auto machine like for example, once you build an application it can do automated robotic testing also. So, it has got robotic processing in the business rules aspect of it and a lot of AI built into it.
  • Unserve has been awarded as the future emerging IT technology platform by ICMG who is the architecture company & started socializing with existing customers & pleased with the response