R Systems Reports 11% Revenue Growth During CY 2023

R Systems International Limited (BSE- 532735; NSE- RSYSTEMS), a leading digital product engineering company that designs and builds next-gen products, platforms, and digital experiences, empowering clients across various industries to achieve revenue growth and operational efficiency.

Highlights for the Year ended December 31, 2023

- Revenue at Rs. 16,845 mn (US$ 204.0 mn); YoY Growth 11.1% (9.9% net of one-time fee)#

- EBITDA at Rs. 2,645 mn (US$ 32.0 mn) i.e.15.7% (14.7% margin net of one-time fee)# as against 13.7% during last year. YoY increase of 27.0%#.

- Net profit after taxes at Rs. 1,401 mn (US$ 17.0 mn).

- Continue to add new logos with traction in large deal wins.

Highlights for the quarter ended December 31, 2023

- Revenue Rs. 4,163 mn (US$ 50.0 mn); YoY Growth of 4.2%.

- EBITDA Rs. 643 mn (US$ 7.7 mn) i.e.15.4% margin as against 14.9% for Q4 2022; YoY increase of 7.7%.

- Net profit after taxes Rs. 459 mn (US$ 5.5 mn).

Nitesh Bansal, Managing Director, and CEO stated, "CY 2023 was a transformation year for R Systems to become a Blackstone portfolio company followed by industry vertical and horizontal alignment of delivery and sales operations to deliver successful digital transformation for our marquee customers. We are seeing early signs of these changes bringing us positive traction on large deals, with few wins already during last year, along with building robust sales funnel for large deals to deliver profitable growth in CY 2024".

He added, "The Company expanded the management bandwidth with the induction of Chief Customer Officer, among others and continued our investment in sales and building competencies around new technologies. The Company has set up a centre of excellence on applied AI for sustainable systems in partnership with IIT Delhi. I am delighted to share that our Company has been certified as a Great Place To Work® in the countries where we have permanent employees - this includes India, USA, Romania, Poland and Singapore".

Nand Sardana, CFO said, "Macro-economic situation has impacted the revenue growth over the year, but the Company has been able to expand the sustainable operating margins through efficient operations and cost optimization. We are committed to resilient, agile, and efficient ways of working to continue our margin expansion program".

Key Deal Wins

A globally recognized climate technologies powerhouse based in USA has engaged R Systems in migrating their legacy application to Azure along with rearchitecting & modernizing it using Cloudnative services.

A large government agency serving the healthcare needs of American citizens has awarded R Systems a project to provide technical expertise for systems involved in provider payments.

A leading commercial and industrial building contractor in North America has chosen R Systems to provide a comprehensive digital support service along with mobile app development.

A US-based multifamily asset management company has engaged R Systems to provide services in data engineering along with evaluation & recommendation for next-gen toolsets needed to process large volumes of data.

A Thailand based biomass energy producer has awarded R Systems to implement Microsoft Dynamics Cloud based ERP (Business Central) to automate and integrate their key business processes.

Liquidity and Shareholder Funds

Cash and bank balances, net of short-term borrowing and amount set aside for dividend as of December 31, 2023, were Rs. 1,338 mn compared to Rs. 2,704 mn as of December 31, 2022. Total equity attributable to shareholders as of December 31, 2023, was Rs. 6,114 mn compared to Rs. 5,455 mn as of December 31, 2022.

Shares of R Systems International Limited was last trading in BSE at Rs. 464.25 as compared to the previous close of Rs. 469.45. The total number of shares traded during the day was 4553 in over 457 trades.

The stock hit an intraday high of Rs. 475.00 and intraday low of 460.55. The net turnover during the day was Rs. 2126837.00.

Source : Equity Bulls

Keywords

RSystemsInternational INE411H01032 CY2023 ResultUpdate