Quick Summary of my notes from Take Concall:
Take Organic Base Business(ex Ecron):
Revenues 281(this qtr) cr vs 228 - 23% yoy, 4.3% qoq
EBITDA 31% growth yoy, & 6.2% growth qoq
USFDA audit with zero observations
37cr (this qtr) vs 42 cr in q4 fy16. There is a general seasonality in this business. November - March heavy business. So H2 will be usually strong for this line of business.
37cr (this qtr) vs 27 cr in q1 fy16 - 40% growth in revenue terms
with -2cr EBITDA
Looking at 17% EBITDA margins for Ecron topline by FY17. Margin drivers will be lower cost.
Only adding scale will help in improving margins & profitability - we are investing aggressively here.
The following items impacted cost:
a. Closed 5 office in spain, malaysia, italy & czekoslovakia. European office locations are difficult to close. Hence a lot of one off costs.
b. 6 sales leaders joined the business. This is a very important investment.
c. H2 will be strong for Ecron. H1 will be soft for Ecron.
Client additions in small & medium pharma space
Marginal degrowth in SCM business - but was on expected lines
US - 81.2% Asia - 11.2% Europe - 7.6%
LSI - 77%, SCM - 19%
Looking at divesting SCM business. Working on opportunities to evaluate. Money that comes from exit of SCM business will go to grow to LSI business.
Debtors cycle just improved by 1 day to 98 days.
Take found a place in Gartner's R&D report. Speaks of quality of business.
New Deals: We won a breakthrough deal in clinical data aggregation space with a large biopharma company.
We won a data analytics deal with a consumer facing company in US. A deal first of its kind for us.
New Offerings: End to end labelling solution for the industry. It is a massive challenge that the industry is facing & could be a large opportunity.
Orderbook: Order book grew by $5mn. The large deal we won(mentioned in March qtr) started from early July, will atleast add $2mn to q2. In q2&q3 we should have another large deal on bag. As of now orderbook is at $108mn vs $76mn in q1 fy15.
QIP for 180crores: A part of QIP will go to debt (80-100cr), next will go to capex and some of it will go for WC. Indian debt will go down.
Dollar denominated will stay on books (8mn LT, 20mn ST debt). This part will stay on books.
Invested, No buy/sell in the last many months.