Cigniti Tech conducted the conference call for Q4 FY22.
"Mgmt expect the margin to remain pressure for next 2 quarter, but things will improve after this."
Here are the concall highlights
👇🧵
"Mgmt expect the margin to remain pressure for next 2 quarter, but things will improve after this."
Here are the concall highlights
👇🧵
Business Updates:
• Added 18 new clients this quarter, making total count of 230+ clients this year.
• Expansion has been made in newer areas ana change in mgmt team.
• 1.5% of the spend made in increase in labour. Attrition rate came out to 29% from 31% last year.
• Added 18 new clients this quarter, making total count of 230+ clients this year.
• Expansion has been made in newer areas ana change in mgmt team.
• 1.5% of the spend made in increase in labour. Attrition rate came out to 29% from 31% last year.
Industry:
• Global AI market is expected to grow at 38% till 2030.
• Data Engineering services need has been increased with amount of data increasing every day.
• Competitor: Every large tier 1 & tier 2 IT company is the competitor.
• Global AI market is expected to grow at 38% till 2030.
• Data Engineering services need has been increased with amount of data increasing every day.
• Competitor: Every large tier 1 & tier 2 IT company is the competitor.
Customer Mix:
• North America contributed 89% of the revenue.
• Top 20 client continue to dominate sharing 34% of the revenue.
• GTM strategy focus on existing account & to make 20-25 Million account.
• North America contributed 89% of the revenue.
• Top 20 client continue to dominate sharing 34% of the revenue.
• GTM strategy focus on existing account & to make 20-25 Million account.
Employee Mix:
• Employee utilization increased in Onsite, while offshore utilization faced a bit of dip.
• Partnered with various events in order to increase in revenue. While training & addition of employees added the cost for the company.
• Employee utilization increased in Onsite, while offshore utilization faced a bit of dip.
• Partnered with various events in order to increase in revenue. While training & addition of employees added the cost for the company.
Sectoral Revenue Share:
• BFSI continuous to be dominating revenue share for the company contributing to 19.6% of revenue.
• BFSI continuous to be dominating revenue share for the company contributing to 19.6% of revenue.
Margins:
• Growth has bit impacted the margins. Hired new CRO for winning large clients, maintaining & retaining the clients.
• Other expense includes few Legal expense paid to lawyers.
• Growth has bit impacted the margins. Hired new CRO for winning large clients, maintaining & retaining the clients.
• Other expense includes few Legal expense paid to lawyers.
Aparaa Digitial
• Board has approved the acquisition of Aparaa Digital Pvt. LTd under the brand name RoundSqr.
• Cash deal of $4.8mn
• Co. is in service of AI/ML, Data engineering, Analytics, & Blockchain services.
• Board has approved the acquisition of Aparaa Digital Pvt. LTd under the brand name RoundSqr.
• Cash deal of $4.8mn
• Co. is in service of AI/ML, Data engineering, Analytics, & Blockchain services.
Other:
• Addition of of 300+ employees and CAPEX lead to bit dip in Cash Flow.
• Board is looking for Buyback and will announce date soon, for which promoter intent not to participate.
• Cash + Investment: Rs 240cr, which will be used for buyback, expansion and acquisition.
• Addition of of 300+ employees and CAPEX lead to bit dip in Cash Flow.
• Board is looking for Buyback and will announce date soon, for which promoter intent not to participate.
• Cash + Investment: Rs 240cr, which will be used for buyback, expansion and acquisition.
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