GST vertical sold off to focus on core business: https://www.bseindia.com/stockinfo/AnnPdfOpen.aspx?Pname=b206b4df-486a-4ea6-92a9-fc7c0a76b85e.pdf
The detailed concall regarding the GST divestment by IRIS.
Also,
be09b8a4-6f69-440e-ac22-96e44d6c0650.pdf (428.1 KB)
Invested in the last few days and biased. 5% allocation.
dr.vikas
Disappointing set of nos., especially degrowth in RegTech segment - https://www.bseindia.com/xml-data/corpfiling/AttachLive/5977a531-7a4c-4c0e-84a0-32725c0307c6.pdf
If they are not able to crack corporates sitting in India, maybe it’s time to get acquired by a larger player.
Edit: Company has said in their press release that they are spending money in setting up a sales team in US. Let’s see how it pans out.
Disc: My largest holding. Have always been bullish on this segment
Very disappointing set of results and the company is taking a different growth route to what we would have preferred. Growth could have also been chased more safely by the divestment being utilised soon with the great sale they made in an inorganic fashion. I do not agree with the company’s strategy of minimising margins in a year to this extent, especially with a high sales base. Further, the fall in Regtech was disappointing with the South Africa contract also petering out this year.
I am a believer in the business model, quality of management and long term aspirations of the management, let’s see if their strategy works well, but I would rather deploy large positions elsewhere now and wait and watch how the coming year pans out for them, especially with valuations still being significantly higher versus when we bought and strong growth behind us.
Disclosure : Continue to hold only tracking position, can add again in the future if valuations are attractive / growth + margins come back.
The new CEO probably doesn’t want to wait till then. This was always bound to happen if they want to scale RegTech / Carbon. SaaS in US is a relationship game especially here since the user is not the buyer or approves commercials.
For example, Workiva spends ~$350 mn+ on sales and marketing annually. I am sure a large part of that is paying their partners like Big 4 firms, etc.
In last concall, management gave guidance of 500 cr revenue in next 5 years!!
Yes. I was also surprised with this. And hence, sold it nearly at my buy price. Hardly any growth from current revenue.
Management have mentioned in past & in May concall that this business is best examined or analyzed it on annual basis rather than looking at the quarterly movements because that’s the nature of business and also 28% annual YOY basis topline growth is new normal similar to past 3 years.
Do we need to give some time for new leadership?
I feel there is lack of growth appetite in the management. In spite of small player there is not even 20% growth. I don’t like managements statement of cash in bank FDs. Good business model but overall onerous performance.
