Thanks for replying Amit! All your points are well taken. There is a very good chance they will do well in the long term based on all the information @Donald has brought up with sectoral tailwinds. Have been reading his points over and over again. They provide a deep understanding of where the company stands.
My main concern is the attitude of the promoters. They have a small sales uptick and start doing well, come up with a PPT stating 2X order book right after their great results of FY24Q3. CEO and CFO give themselves a good salary raise.
This is ~2.5 CR salary for 2 employees on PAT of 18 CR in FY24 after losses of many year and then this come up with sales degrowth in less than a year. Also, the FY24 AGM was a complete wash - seems like the promoter doesnât want any accountability and never takes any questionsâŚ
But, as you have both pointed out, if they win a big order, it is off to the races. For now, will try to exit at a substantial loss. Will try to get your inputs on RS every so often.
CEO update on Q3 Financials as shared on the company website :
Some of the business has shifted to next fiscal. For 9 months we have 18% growth in revenue. As I mentioned during our call that we are in early stages of building the market for our product suite. While we are getting traction, our challenge is that sales cycles are long and revenue growth is not consistent. We are working towards it. We are confident of our growth strategy.
Also IP of their products is bit doubtful. If IP was so valuable why is no corporate/PE/promoter is trying to acquire share from market.
Coming to one big order from western world. Given new geo-political realities that may not happen immediately. Corporate world is trying to live with Trump tantrum. No one would want to change vendors and give a substantial chunk of work to a new super tiny 5million$ company 8000 miles away.
Samik Roy was the Executive Director (Corporate, Medium & Small Business), India & South Asia at Microsoft. He is based in Gurugram, Haryana, India, and leads Microsoftâs business strategy and execution for corporate, medium, and small business segments across India and South Asia
Any idea why he will be benefitting company in the role of COO?
Posting after another quarter of poor results. Wrote to the co asking for a conf call to provide updates on recent hires⌠Got a curt reply from the CFO posted below.
This sort of company canât be looked at QoQ basis. Or even YoY basis. It will be dead money for many years and may either fail to go anywhere and you lose your money or be a massive wealth generator (like Tanla, NPST and the likes).
Itâs true that the management had told that some projects were shifted by 6 months but the results show no improvement. What is interesting is their new COO hire. He had a very prestigious post in Microsoft and was a director there. No way he would shift to a sub 20MM USD company unless he really sees growth here.
Agree with your points - no comparison QoQ basis. I was very excited with Samik Royâs hiring in July. They also moved their office recently and are quite active on social media.
It would be nice if the COO could give some insights as to what the strategy going forward will be. What is his vision for the company for the next 2 years?
Yes, but management has been mostly quiet when it comes to their strategy. I also hope they can monetize what every they build. A real shame that the pioneers of the worlds largest payment rail (by volume) is a struggling company
We wish to inform you pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 that there will be an investor Call on 21st November 2025 at 12:00 Noon.
Personally feel it is more of the same. Company needs lots more dynamism at the top level to:
a) Convert prospects to wins
b) Deliver to customers more than expectations
c) Communicate to shareholders atleast in general terms about bottlenecks faced.
They have started (c) at a very high level, hopefully can continue to improve on (a) & (b) as they seem to be investing there.
