SoftTech Engineers Ltd

Stock Opportunities
17

hi all. some very good posts above. I had taken up this company after attending the SME meet in bombay. I agree and understand that AutoDCR has some amount of switching costs and has a valuable franchise with participation of many local municipalities. I had the following queries, which i had even sent to the management, but have not received any reply from the same. Sharing my list of questions here in case anyone can figure -

  1. Below are the Opticon revenues in INR crores over last 5 years –
Particulars 2015 2016 2017 2018 2019
Opticon revenues 4.24 1.85 0.63 4.16 3.87
Increase by -56% -66% 565% -7%

Could you please tell us the reason for decline in Opticon revenues in and 2016 2017 and their subsequent revival in 2018?

  • Could you help us understand the customer concentration among the top 5 players as a % of sales?

  • What does Others segment in revenues (INR 5.18 crores both in 2019 and 2018) include?

  • Product revenues component of total revenues has been going down from INR 14.4 Crores in 2013 to INR 5.3 Crores in 2019. Could you please tell us what these product revenues pertain to and why have they declined?

  • Details of bad debt of the company (in crores) are as follows –

Particulars 2015 2016 2017 2018 2019
Bad debts w/off during the year 0.8 0.9 1.2 0.9 1.2
as a % of average debtors o/s 4.9% 4.3% 5.1% 5.2% 5.7%
as a % of Sales 2.2% 2.0% 2.6% 1.8% 1.9%

With a large part of company’s sales being made to the local government bodies, could you help us understand the reasons for large bad debts?

  • Could you please tell us what the current outstanding order book size is and across the timeframe the same will be executed? In one of the previous annual reports, the same was mentioned as INR 186 crores.

  • Could you please let us know the life of a contract with a large local body like Pune (PMC)? Also, how does the contract duration change across AutoDCR, PWIMS and Opticon?

  • Post the completion of 3 years with respect to the order received from Municipal Department of Andhra Pradesh, is the company eligible to receive any sort of AMC from the PWIMS product? Also, it would be great if you could tell the margins that the company is targeting for this specific order.

  • From what we understand, SoftTech charges the local body based on the square foot analysed by AutoDCR. Is this correct? How is the revenue recognised for PWIMS?

  • Could you please let us know the approximate potential equity dilution post conversion by RIB Software SE of the convertible debentures?

thanks @bheeshma and everyone else for all your posts above.

have a nice day

Umang

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