KELLTON TECH SOLUTIONS LTD CMP: 102.30 JULY 25 , 2017 ... · Deloitte Technology Fast 50 India and Fast 500 Asia-Pacific respectively. Prestigious recognitions at industry-leading
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KELLTON TECH SOLUTIONS LTD Result Update (CONSOLIDATED BASIS): (Q4 FY17)
CMP: 102.30 JULY 25th, 2017
Overweight ISIN: INE164B01022
Index Details SYNOPSIS
Kellton Tech Solutions Limited is a CMMi Level 3 and ISO 9001:2008 certified global leader in digital transformation, propelling businesses into their future by transforming the way they operate.
Total revenue for the year FY17 was Rs. 6157.45 mn as compared to Rs. 4640.15 mn in FY16 reflecting a growth of 32.7% on Y-o-Y basis.
Total income was Rs. 1657.96 mn in Q4, up 4.7% on Q-o-Q basis.
The Company reported EBITDA of Rs. 867.53 mn in FY17, up 36.2% on Y-o-Y basis.
The Company reported EBITDA of Rs. 240.36 mn in Q4 FY17, an increase of 8.6% on Q-o-Q basis.
The EBITDA margin for the quarter was 14.5% as compared to 14.0% in Q3 FY17.
Net profit stood at Rs 537.54 mn for FY17 as compared to net profit of Rs 309.73 mn in FY16 reflecting a growth of 35.9%.
Net profit stood at Rs. 143.11 mn in Q4 FY17, registering 2.5% increase on Q-o-Q.
Net Sales and PAT of the company are expected to grow at a CAGR of 39% and 37% over 2016 to 2019E, respectively.
EPS of the company stood at Rs.11.40 for FY17. During the quarter, the company has acquired 9 new
clients. Kellton Tech acquired Lenmar Group to strengthen
the capabilities in the BFSI sector. Kellton Tech was ranked 19th and 193rd in the 2016
Deloitte Technology Fast 50 India and Fast 500 Asia-Pacific respectively.
Prestigious recognitions at industry-leading platforms like Digitizing India Awards and Digital India Summit.
Recently listed in the Forbes Asia’s latest 'Best under a Billion' list of the top 200 publicly traded companies in the Asia-Pacific region.
Stock Data Sector IT Software Products BSE Code 519602 Face Value 5.00 52wk. High / Low (Rs.) 177.00/79.00 Volume (2wk. Avg.) 11000 Market Cap (Rs. in mn.) 4973.76
Enterprise Application Integration, Service Oriented Architecture Strategy, Maintenance and Support
• Business Process Management
Business Process Analysis and Optimization, Process Design and Integration, Process Management, Activity
Monitoring and Analytics
Business Segments
Digital Transformation Business
In FY17, Digital transformation contributed ~55% of revenue. Digital revenue has grown at a CAGR of 33.14% from FY14 to FY17 with growth being higher at 50% in FY17. The growth was led by capability edge in digital transformation and acquisitions.
Digitization is disrupting business as never seen before. According to Gartner, 75% of the business will be a digital business or will be preparing to become digital by 2020. Management is expecting large opportunities with companies looking for enterprise digital transformation deals, given its expectation of mass adoption in the near future. It has
technology partners such as Mulesoft, Software AG, Microsoft Azure, SAP, IBM and IBM Watson, Kellton Tech is very well positioned to grasp this opportunity
Digital Transformation is Disrupting
Industries currently Adopting Digital Disruption
The annual survey conducted by Russell Reynolds Associates studies above 2000 C-level enterprises about the impact, structure, enablers, and barriers of digital transformation across 15 major industries.The graphic above shows the percentage of executives surveyed who responded that their business would be moderately or massively disrupted by digital in the next 12-18 months, industry-wise.
Digital disruption is difficult to navigate for traditional enterprises. Embracing a technology shift makes it difficult for enterprises to change their business processes. Kellton Tech provides digital advisory services to accelerate the client’s transformation journey, and continuously empowers them to thrive through each stage of business disruption. Its core
services include defining initial strategy, providing customer research analytics, integrated marketing support, and agile innovation for the enterprise.
Kellton Tech’s experts helps customers define the strategy for how to undertake this digital transformation by providing the capabilities for organizations to align this transformation with their business strategy, manage risk and compliance and find efficiencies within their application portfolio to drive cost savings. Its solutions help clients achieve higher customer value and market differentiation.
Key Clients under Digital Transformation Business
The recent Transformational project executed by Kellton Tech was for India’s Leading Digital payments and wallet provider, India’s largest airline, and a multinational insurance giant, helping them usher a revolution in digital payments scenario.
Enterprise Applications Business
In FY17, Enterprise applications accounted for ~26% of revenues. In the Enterprise Application business, Management expects a movement from traditional SAP, ERP towards Cloud solutions such as Hybris and S/4 Hana as big opportunity going forward
Kellton Tech provides an end-to-end analytics platform using technologies like Big Data, IoT to improve business performance and operational efficiency.An in-depth analysis of structured as well as unstructured data is done through the following process:
• Collect data from multiple sources. • Store data in servers using Hadoop MapReduce, Cloudera, HortonWorks etc. • Process the collected data to gain insights using technologies like Hive. • Utilize trending data visualization technologies like Tableau, Splunk etc. to improve business reporting and
monitoring activities.
Example of Transforming Retail Industry
Taking the example of the retail industry, big data technologies can be used to reduce license cost and integrate huge volumes of data, with a minimal impact on client’s reporting structure.Hadoop MapReduce is used to leverage data from terradata. Enterprises can transform and aggregate huge volumes of data into relevant customer insights with the help of technologies like Hive. Kellton Tech’s solution recommends the integration of MongoDB and Hive to integrate these insights and improve the efficiency of client’s reporting and monitoring systems thereby impacting the overall business
growth. Solutions provided by Kellton Tech help clientsto achieve efficient data migration and quicker aggregation of large datasets at an affordable cost.
Kellton Tech’s customer engagement models help businesses transcend their inherent constraints, boost their workforce synergy, and leapfrog competition with enterprise-wide digital integration.
Kellton Tech builds a connected world. Customized IT solutions, digital transformation strategy, strategic mobility consulting, Governance, risk and compliance, etc. using technologies like IBM, Software AG, and efficient tools of digital commerce and marketing are few of the services that Kellton Tech excels in.
Key Clients under Enterprise Applications Business Segment
Kellton Tech provides omnichannel commerce solutions—developed on industry-leading commerce platforms—to help organizations achieve top-line growth. Kellton Tech works with best-in-class platform partners to deliver comprehensive e-commerce and omni-channel solutions to address the unique needs of clients. Kellton Tech continuously invests in partner solutions and technologies for faster time to market in its clients’ omni-channel transformation journey.
PRODUCTS:
Kellton Tech has built several IPs that push the envelope of technology further, redefining the way in which business
processes operate. These push enterprises in advanced world to unprecedented levels of digitization, even as they are
primed to function in the heat and dust of developing economies through cutting-edge, cost-efficient innovations.
Following are select IP-based Products from Kellton Tech:
• KLGAME: Kellton Tech Location based Gamification, Analytics and rich Messaging Engine • Kellton Tech IoT: A scalable enterprise standard based platform for connected devices, sensors, beacons which covers
data acquisition, device provisioning and management, data processing and analysis, dashboards, alerts. • Kellton Tech Mobility Framework: An end-to-end mobility solution provisioned with data collection, data integration,
analytics and enterprise dashboards. It’s a cross-platform framework with online-offline mode and intuitive UI and UX.
• Kellton Tech SehatSense: A raspberry-PI based healthcare cloud-enabled device with health sensors for elderly care,
mother and child care etc. • Kellton Tech Chatbot Solution Framework: A chatbot middleware solution which can connect to any conversation
backend and any business tools like HRMS, ERP etc. With its high-impact Conversation Design and transformation, it gives the users near human-like conversation quality for business scenarios.
• Kellton Tech Media Solution Framework: A highly scalable world-class solution for media industry designed to improve user digital experience and workforce productivity.
• Kellton Tech DevOps Solution Framework: A solution which provides complete application and infrastructure health
dashboard, thorough application performance analysis, bottleneck analysis and detection, early warnings, system on autopilot for capacity, disaster recovery etc.
38.0% 37.0% 36.3% 35.1% 26.2%
46.0% 48.0% 49.5% 51.7%54.2%
16.0% 15.0% 14.2% 13.2% 19.6%
Q3 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17
Revenue By Business
Enterprise Applications Digital Transformation Others
Latest Updates
• On 13th June, 2017, BEC (Systems Integration) Ltd, a leading provider of automated data capture and voice solutions
for use within the supply chain, logistics and manufacturing industries, has formed a partnership with Kellton Tech, a
global leader in digital transformation with astrongexpertise in enterprise solutions. The partnership will help infuse
SAP’s latest capabilities into BEC’s solutions, enabling them to successfullyimplement S/4 HANA migration.
New Client Wins during Q4 FY17:
The company has acquired 9 new clients, prominent of them are:
• A leading insurance provider: Kellton Tech is providing a cognitive virtual agent solution using chatbots, artificial
intelligence to improve customer service and satisfaction.
• A major airport: Kellton Tech is implementing an end-to-end Digital Transformation solution utilizing blockchain,
advanced analytics and cloud services enhancing security.
• A leading credit-reporting agency: Kellton Tech is developing a Digital Roadmap and advanced analytics platforms to
enhance their digital capability and improve credit accuracy.
• A leading US mobile communication solutions provider: Kellton Tech is scaling up their enterprise systems to support
increased demand and enabling them to achieve performance optimization.
Shareholder's Funds Share Capital 234.13 235.72 235.72 235.72 Reserves and Surplus 1023.08 1532.48 2145.47 2853.47
1. Sub Total - Net worth 1257.21 1768.20 2381.19 3089.19 2. Share application money pending allotment 0.33 0.00 0.00 0.00
Non Current Liabilities
Long term Borrowings 321.47 437.81 516.62 578.61
Deferred Tax Liabilities 14.27 13.94 13.10 12.45
Other Long term Liabilities 78.42 55.46 57.68 59.98
Long term Provisions 4.67 12.23 15.04 18.05
3. Sub Total - Non Current Liabilities 418.83 519.44 602.44 669.09 Current Liabilities
Short term Borrowings 428.01 538.19 602.77 650.99 Trade Payables 176.09 205.18 229.80 252.78 Other Current Liabilities 206.49 314.53 364.86 415.94 Short Term Provisions 603.52 605.74 617.86 636.39
4. Sub Total - Current Liabilities 1414.11 1663.64 1815.28 1956.10 Total Liabilities (1+2+3+4) 3090.48 3951.27 4798.91 5714.38 APPLICATION OF FUNDS Non-Current Assets Fixed Assets
a) Fixed Assets 102.38 136.63 172.16 204.87 b) Goodwill on consolidation 1089.47 1492.77 1821.17 2112.56 c) Long Term Loans and Advances 16.06 24.47 30.59 36.10 d) Other non-current assets 0.69 0.41 0.47 0.57
1. Sub Total - Non Current Assets 1208.60 1654.28 2024.39 2354.10 Current Assets
Inventories 33.22 23.92 27.27 30.81 Trade receivables 1222.93 1467.73 1731.92 2126.32 Cash and Bank Balances 78.84 161.31 203.25 243.90 Short-terms loans & advances 405.76 564.69 712.10 840.28 Other current assets 141.14 79.35 99.98 118.97
2. Sub Total - Current Assets 1881.88 2296.99 2774.51 3360.28 Total Assets (1+2) 3090.48 3951.27 4798.91 5714.38
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