R Systems Revenue Crosses US$100 mn in Calendar Year 2013
February 10, 2014 - Noida, Uttar Pradesh, India
Recommends Dividend of Rs. 9.50 per share of face value of Rs. 10/-
Consolidated results for FY ended December 31, 2013
- Consolidated revenue for FY 2013 was Rs. 596.05 crores (US$ 101.76 mn.) as against Rs.465.01 crores (US$ 87.05 mn.) in FY 2012; YoY increase of 28.18 %.
- Earnings before interest, depreciation, taxes and allowances (“EBITDA”) for FY 2013 were Rs. 78.64 crores (US$ 13.43 mn.) as against Rs. 34.84 crores (US$ 6.53 mn.) in FY 2012; YoY increase of 125.74 %.
- Net profit after taxes for FY 2013 was Rs. 52.70 crores (US$ 9.00 mn) as against Rs. 18.36 crores (US$ 3.44 mn) in FY 2012; YoY increase of 187.00 %.
- Earnings per share (face value of Rs 10/- each) of Rs. 41.78 for FY 2013 as against Rs. 14.76 in FY 2012 equivalent to Rs. 4.18 per share for the year 2013 and Rs. 1.48 per share for the year 2012 post sub-division of share into Re. 1/- face value.
- Total cash and bank balances as at December 31, 2013 were Rs. 111.52 crores as against Rs. 88.94 crores as at December 31, 2012.
Consolidated results for the quarter ended December 31, 2013
- Consolidated revenue from operations for Q4-13 was Rs. 165.55 crores (US$ 26.78 mn) compared to Rs. 121.60 crores (US$ 22.44 mn) in Q4, 2012 and Rs. 160.42 crores (US$ 25.89 mn) in Q3, 2013. YoY increase was 36.14 % and QoQ increase was 3.20 %.
- EBITDA was Rs 29.28 crores (US$ 4.83 mn) compared to Rs. 5.89 crores (US$ 1.08 mn) in Q4, 2012 and Rs. 28.71 crores (US$ 4.85 mn) in Q3, 2013. YoY increase was 397.23 % and QoQ increase was 2.00%.
- Net profit after taxes was Rs. 21.77 crores (US$ 3.61 mn) compared to Rs. 2.91 crores (US$ 0.53 mn) in Q4, 2012 and Rs. 18.05 crores (US$ 3.05 mn) in Q3, 2013. YoY increase was 648.92 % and QoQ increase was 20.59 %.
- During the quarter, R Systems added 8 key customers.
- Total associates as on December 31, 2013 were 2,582 compared to 2,566 at the end of December 31, 2012 and 2,563 at the end of September 30, 2013.
Mr. Rekhi Singh, Chairman and MD stated “We have joined the elite club of companies with revenue over USD 100 mn. Over the year we added over 15 marquee clients with profitability across all business verticals and geographies. We have a strong balance sheet with constant cash generation and are keen to invest further in research and development, and creating more innovative solutions.”
He added, “ Year 2014 looks promising for the Company and considering the overall performance, the Board has recommended a final dividend of Rs. 9.50 per share having face value of Rs. 10/- (in addition to earlier declared interim dividends of Rs. 11 per share) subject to approval of shareholders.”
Mr. Raj Swaminathan Executive Director and COO said “We are able to achieve record revenue and profitability through discipline in execution. During 2013, we served 25 million dollar plus accounts including 6 accounts contributing dollar three million plus revenues.” He added, “Our Indus Product Business won the Financial Express “IT Solution of the Year” award for the high impact and innovative solution we delivered for India’s one of the most respected Insurance companies. We were declared the Category winner by an elite jury panel comprising highly regarded Business / IT and Academic leaders.”
The Board of Directors at its meeting held on February 7, 2014 has recommended a final dividend of Rs 9.50 per share having face value of Rs. 10/- each (being 95% on face value) , subject to approval of the shareholders at the forthcoming Annual General Meeting. This is in addition to first and second interim dividend of Rs. 2.50 and Rs. 8.50 per equity share declared earlier during the year 2013.
Key Operational Highlights for the Quarter
R Systems’ core service offerings include Outsourced Product Engineering, sold under our brand of iPLM (Integrated Product Life Cycle Management) IT and ITES services. Our iPLM IT Services are designed to help software product development companies to accelerate their time-to-market, make our customer more competitive and increase product life spans. Our key ITES services include customer care and technical support, managed services, NOC support, high-end quality process management and revenue and claims management. These are delivered in multiple languages using our global delivery model.
R Systems products group consists of two units i.e., Indus® and ECnet®. Indus® addresses its target BFSI market with its flagship product LSI (Lending Solutions from Indus) and its variants for the telecom and Insurance industry.
ECnet® addresses supply chain, warehousing and inventory management. Further, ECnet also operates as a channel partner for reselling and implementing several ERP products of one of the largest ERP vendors.
The quarter concluded with 8 key new customers and has a strong pipeline across the business verticals and geographies. The brief of some significant wins are listed below:
One of the leading providers of cloud-based HR and payroll solutions for SME businesses in USA has selected R Systems USA subsidiary for development of its billing and expense management modules along with revamping its existing legacy application.
One of the leading Swiss banks offering a wide range of products including loans, leasing, credit cards and savings products has selected R Systems to implement a project to upgrade its key front end applications.
A UK based new mobile phone manufacturer has selected R Systems’ European BPO arm to provide technical support and customer services for its new range of smart phones.
A large auto manufacturer establishing its wholly owned captive financing company has chosen R Systems’ flagship Indus product lending solutions for a wing-to-wing implementation for its lending and leasing business covering retail and corporate customers.
One of India’s fastest growing scheduled commercial banks specializing in Agri & Development banking has chosen R Systems’ Indus Collections solution for implementation across its multi-portfolio retail lending operations.
One of Malaysia’s largest business conglomerates engaged in various businesses e.g. Automotive, hotels & resorts and health care etc. across Asia Pacific region has selected R Systems’ subsidiary ECnet Limited to implement a renowned financial consolidation and reporting solution along with corporate performance management solution.
Liquidity and Shareholder Funds
Total Consolidated Cash and bank balance, including bank deposits and liquid debt funds, as at December 31, 2013 was Rs. 111.52 crores compared to Rs. 88.94 crores as on December 31, 2012. Total shareholder funds as on December 31, 2013 were Rs. 231.76 crores compared to Rs. 194.60 crores as on December 31, 2012.
About R Systems International Limited
R Systems International Limited founded in 1993, is one of the leading provider of outsourced product development and customer support services. We help companies to accelerate the speed to market their products and services with a high degree of time and cost predictability by using our proprietary pSuite framework. Clients can choose services specific to their needs from R Systems iPLM suite of services. We help companies to build scalable, configurable and secure products and applications; and help our clients to support their customers worldwide for products and services using our global delivery model in 20 languages. R Systems rapidly growing customer list includes a variety of Fortune 1000, government and mid-sized organizations across a wide range of industry verticals including Banking and Finance, High Technology, Independent Software Vendors, Telecom and Digital Media, Government, HealthCare, Manufacturing and Logistic Industries. R Systems maintains thirteen development and service centres and using our global delivery model we serve customers in USA, Europe, South America, the Far East, the Middle East and Africa.
Investors are cautioned that this presentation contains forward looking statements that involve risks and uncertainties. The Company undertakes no obligation publicly to update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Actual results, performance, or achievements could differ from those expressed or implied in such forward-looking statements.
Source: Business Wire India