AGC Networks Limited · 2017. 1. 18. · Strategy > Multiproduct, Multipartner, Multi Geography ....
Transcript of AGC Networks Limited · 2017. 1. 18. · Strategy > Multiproduct, Multipartner, Multi Geography ....
AGC Networks Limited Full year results – 31st March, 2012
11th May, 2012
S K Jha Managing Director and CEO
AGC Overview
• Leading ICT Solutions provider and integrator
• One of the largest customer, channel and
technology partner base in India
• Higher profitability due to focused quadrant
and a differentiated vertical approach
• Taking Indian expertise to global markets
About AGC
The Evolution of IT - Then
Unified Communications
Business Applications
Networking
Information Security, Storage, Servers
The Evolution of IT - Now
Business Applications
Networking
Information Security, Storage, Servers
Unified Communications
Web
Chat IVR
Social Media
Telephony
CTI
Video
The Void
Global Leaders in IT Services $ 100+ Bn.
Global Leaders in Networking and Software $20 - $70 Bn.
Large/ Major IT Services SI’s $5 - $17 Bn.
Small/ Regional IT Services SI’s $50 - $500 Mn.
Small Gap
Large Gap
Huge Gap
Sources: SEC Filings, Company Annual Reports
aims to fill this gap:- • Transformational engagements • Global Customer relationships and service delivery • Symbiotic relationships with key technology alliance partners
Growth Strategy
Pre Acquisition Post Acquisition*
Product “Unified Communications (UC)” UC + Network Infrastructure + Server & Storage + Network Security
Partners Avaya Multiple Partnerships & Alliances
Place India + ANZ India + ANZ + MEA + US+ Philippines
Price Product Led, Avaya Determined Service Led, Market Determined
Position Avaya Service Partner Communication Solutions Integrator
103 Strategy > Multiproduct, Multipartner, Multi Geography
Single Offering
*Avaya Inc sells 59.13% stake in AGC Networks to the Essar Group. Essar completes acquisition by acquiring another 20%
Transformational Engagements
Solutions
Unified Communications
IP Telephony
Contact Center
Video
Audio
Conferencing
Web
Social Media
Network Infrastructure
Switching
Routing
Metro
Wire Line
Wireless
WiMax
Network Security
Data Center & Virtualization
Computing
Platform
Server
Storage
Enterprise Applications
Business Apps •SAP •Oracle
Customer Experience •IVR •CTI •CRM
Industries BFSI Mfg,
Energy Travel &
Hospitality Healthcare IT/ITeS Telecom Govt &
PSUs SMB
Solutions
Services
Managed Services Deployment Services
Maintenance Services
Professional Services
Global Customer Relationships
Others Manufacturing/Industrial
Telecom
GPD
BFSI IT & ITeS
2500+ strong, diverse customer base including Fortune 500 companies
Relationships with OEM‘s
60+ strategic relationships with key technology alliance partners
Strategic Partners
Leverage strategic alliances to drive the growth
Platinum
Elite
Gold
Platinum
Platinum
Strategic
Platinum
Gold
Platinum
Gold
Recognitions
APAC Commercial Partner of the Year 2011 – Juniper APAC Technical Excellence Partner of the Year 2011 - Avaya Most Extreme Partner of the Year 2011 – Extreme Networks APAC Partner of the Year 2011 – Aspect Top Performing Partner of the Year 2011 – Nice APAC Best Service Partner - Polycom Highest Growth Partner of the Year – Jabra APAC Best Promising Partner – Christi Best Performance BFSI, Enterprise - AMX Best Sales Partner BFSI , Enterprise – Samsung Best Emerging Partner of the Year - Citrix
12
Global Footprints
13
Aegis Presence
South Asia (India and Sri Lanka)
Australia & New Zealand
UK
Philippines
North America
New Zealand Australia
Argentina
Philippines
India
South Africa
Saudi Arabia
United Kingdom
AGC Presence
AGC to leverage on Aegis geographical presence for future scale-up
Global footprint across 11 countries
Saudi Arabia
UAE Singapore
Strategy Implementation Plan
India + High Growth Markets
Global Markets
Product Margin
Service Margin
Sales & Marketing
General & Administration
Leverage India OEM Relationships globally
India Team for Professional Services
Higher Service component, AMC support (L1-L2) from India
Local + India Support Local + Aegis Relationships
Leverage on Aegis Learning from “International Expansion”
Our strategy will help us outperform industry
Local Infrastructure Aegis Infrastructure
Financials
194
303
-
50
100
150
200
250
300
350
Q4 FY'11 Q4 FY'12
56%
Financials – Revenue (Rs Crores)
Strong Revenue Growth of 56%, up from Rs. 194 Crs in the Q4 for 2010-2011 to Rs 303 Crs in Q4 of FY 11-12
Revenue which was Rs 590 Crs in FY 2010-2011 has increased to Rs 998 Crs in FY 11-12 with 69% Growth YoY
Revenue Growth largely due to new practices like Data, Security, Storage and new geographies (Middle East & Africa)
590
998
-
200
400
600
800
1,000
1,200 69%
241
303
-
50
100
150
200
250
300
350
Q3 FY'12 Q4 FY'12
26%
(Corresponding Quarter PY) Sequential (QoQ) (YoY)
29.2
63.4
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
FY - 2010-2011 FY - 2011-2012
Margin %
Financials – YoY
EBIDTA PBT
Margin % 8.6%
Rs
in C
rs
Rs
in C
rs
7.3%
PAT EPS
Rs
in C
rs
11% 9%
6.4%
5%
52.4
108.5
-
20.0
40.0
60.0
80.0
100.0
120.0
FY - 2010-2011 FY - 2011-2012
43.04
86.2
0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0
FY - 2010-2011 FY - 2011-2012
Margin %
20.52
44.57
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
FY - 2010-2011 FY - 2011-2012
Operating Highlights
Particulars Quarter Ended Quarter Ended FY Ended
(Corresponding Quarter PY)
Sequential (Q0Q)
(YoY) (Rs in Crs) Q4 FY'12 Q4 FY'11 Growth Q4 FY'12 Q3 FY'12 Growth FY'12 FY'11 Growth
Revenue 303 194 56% 303 241 26% 998 590 69%
GM 82 43 91% 82 62 31% 256 163 58% (%) 27% 22% 27% 26% 26% 28%
EBITDA 41.7 12.4 235% 41.7 29.3 42% 108.5 52.4 107% (%) 14% 6% 14% 12% 11% 9%
PBT 35.2 10.3 240% 35.2 23.0 53% 86.2 43.0 100% (%) 12% 5% 12% 10% 9% 7%
PAT 23.5 7.5 212% 23.5 18.5 27% 63.4 29.2 118% (%) 8% 4% 8% 8% 6% 5%
EPS (Annualised in Rs) 44.6 20.5 117% 44.6 20.5 117%
Dividend (Rs.) 15.0 4.50 233%
Dividend Yield % 6.4% 1.96%
ROCE % 24% 11%
Quadrant Wise & Geo Wise Revenue – FY’11 & FY’12
93%
7%
India Rest of World
38%
37%
18%
7%
FY'12
UC - 381 Crs
Business Application & PS - 370 Crs
NI - Data & N/W - 178 Crs
ISS & SS - 69 Crs
46%
43%
9% 2% FY'11
UC - 273 Crs
Business Application & PS - 252 Crs
NI - Data & N/W - 55 Crs
ISS & SS - 10 Crs
62%
38%
India Rest of World
Product & Service Mix – QoQ Revenue
-
50
100
150
200
250
300
350
Q3 FY'11 Q4 FY'11 Q1 FY'12 Q2 FY'12 Q3 FY'12 Q4 FY'12
Rs C
rore
s
Revenue - Product Revenue - Service
66% 71% 70% 72% 67% 68%
34%
29% 30%
28% 33%
32%
132
194 196
257 241
303
Steady Growth despite seasonality in business
Key Highlights
Based on the current growth trajectory, we are confident of comfortably
outperforming the industry average growth rates.
Revenues of Rs 303 Crs with EBITDA of Rs 41.7 Crs for Q4 2011 with
EBIDTA Margin of 13.8%
Increase of 56% in Revenue and 235% in EBIDTA, as compared to Q4
of the last year
Revenue for FY 2011-12 stands at Rs 998 Crs with EBITDA of Rs 108.5
with EBIDTA Margin of 11%.
Revenue jump of 69% and EBIDTA of 107% in the last financial year
The AMC as engine of Growth to kick in the current year
Let’s begin!