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AGC Networks Limited Full year results – 31 st March, 2012 10th May, 2012 S K Jha Managing Director and CEO
AGC Networks Limited Full year results – 31st March, 2012
10th May, 2012
S K Jha Managing Director and CEO
AGC Overview
• Leading ICT Solutions provider and integrator
• Strong customer, channel and technology
partner base
• Higher profitability due to focused quadrant
and a differentiated vertical approach
• Taking Indian expertise to global markets
About AGC
Industry Overview
The Evolution of IT - Then
Unified Communications
Business Applications
Networking
Information Security, Storage, Servers
The Evolution of IT - Now
Business Applications
Networking
Information Security, Storage, Servers
Unified Communications
Web
Chat IVR
Social Media
Telephony
CTI
Video
The Void
Global Leaders in IT Services $ 100+ Bn.
Global Leaders in Networking and Software $20 - $70 Bn.
Large/ Major IT Services SI’s $5 - $17 Bn.
Small/ Regional IT Services SI’s $50 - $500 Mn.
Small Gap
Large Gap
Huge Gap
Sources: SEC Filings, Company Annual Reports
aims to fill this gap:- • Transformational engagements • Global Customer relationships and service delivery • Symbiotic relationships with key technology alliance partners
AGC Transformation
Pre Acquisition Post Acquisition*
Product “Unified Communications (UC)” UC + Network Infrastructure + Server & Storage + Network Security
Partners Avaya Multiple Partnerships & Alliances
Place India + ANZ India + ANZ + MEA + US+ Philippines
Price Product Led, Avaya Determined Service Led, Market Determined
Position Avaya Service Partner Communication Solutions Integrator
Growth Strategy > Multiproduct, Multipartner, Multi Geography > 103 Strategy
Single Offering
*Avaya Inc sells 59.13% stake in AGC Networks to the Essar Group. Essar completes acquisition by acquiring another 20%
Transformational Engagements
Solutions
Unified Communications
IP Telephony
Contact Center
Video
Audio
Conferencing
Web
Social Media
Network Infrastructure
Switching
Routing
Metro
Wire Line
Wireless
WiMax
Network Security
Data Center & Virtualization
Computing
Platform
Server
Storage
Enterprise Applications
Business Apps •SAP •Oracle
Customer Experience •IVR •CTI •CRM
Industries BFSI Mfg,
Energy Travel &
Hospitality Healthcare IT/ITeS Telecom Govt &
PSUs SMB
Solutions
Services
Managed Services Deployment Services
Maintenance Services
Professional Services
Global Customer Relationships
Others Manufacturing/Industrial
Telecom
GPD
BFSI IT & ITeS
2500+ strong, diverse customer base including Fortune 500 companies
Relationships with OEM‘s
60+ strategic relationships with key technology alliance partners
Global Footprints
12
Aegis Presence
South Asia (India and Sri Lanka)
Australia & New Zealand
UK
Philippines
North America
New Zealand Australia
Argentina
Philippines
India
Sri Lanka
South Africa
Middle East
United Kingdom
AGC Presence
AGC to leverage on Aegis geographical presence for future scale-up
Global footprint across 9 countries
Financials
590
998
0
200
400
600
800
1,000
1,200
FY - 2010-2011 FY - 2011-2012
Revenue in Rs Crs
Financials
AGC Revenue
• Strong Revenue Growth of 56%, up from Rs. 194 Crs in the Q4 for 2010-2011 to Rs 303 Crs in Q4 of FY 11-12
• Revenue which was Rs 590 Crs in FY 2010-2011 has increased to Rs 998 Crs in FY 11-12 with 69% Growth YoY
• EBIDTA in 2010-11 has been increased from Rs 52.4 Crs to Rs 108.5 Crs in FY11-12 with 107% Growth.
• Diluted EPS has increased from Rs 20.52 per share to Rs 44.57 per share in FY 11-12
Financials
EBIDTA PBT
Margin % 8.6%
Rs
in C
rs
Rs
in C
rs
7.3%
PAT EPS
Rs
in C
rs
11% 9%
6.4% 5%
52.4
108.5
-
20.0
40.0
60.0
80.0
100.0
120.0
FY - 2010-2011 FY - 2011-2012
43.04
86.2
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
FY - 2010-2011 FY - 2011-2012
Margin %
29.2
63.4
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
FY - 2010-2011 FY - 2011-2012
20.52
44.57
0.0 5.0
10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0
FY - 2010-2011 FY - 2011-2012
Operating Highlights
Particulars Quarter ended % FY Ended %
(Rs in Crs) Mar-12 Mar-11 Growth 2011-12 2010-11 Growth
Revenue 303 194 56% 998 590 69%
EBITDA 41.7 12.4 235% 108.5 52.4 107%
EBITDA Margin (%) 14% 6% - 11% 9% -
PBT 35.2 10.3 240% 86.2 43.0 100%
PBT Margin (%) 12% 5% - 9% 7% -
PAT 23.5 7.5 212% 63.4 29.2 117%
PAT Margin (%) 8% 4% - 6% 5% -
Diluted EPS in Rs (Annualised) 44.57 20.52 117% 44.57 20.52 117%
Quadrant Wise Revenue – FY 2011-2012
Product & Service Mix – Quarterly Revenue– FY11-2012
Strategy & Highlights
Changed world order
What was relevant yesterday is not relevant today
Yesterdays USP’s are today’s must haves
We have a changed world order
Yesterdays alliances are today’s competition
Google, Yahoo, Skype are rearing to fuel further disruptions
Strategy Implementation Plan
India + High Growth Markets
Global Markets
Product Margin
Service Margin
Sales & Marketing
General & Administration
Leverage India OEM Relationships globally
India Team for Professional Services
Higher Service component, AMC support (L1-L2) from India
Local + India Support Local + Aegis Relationships
Leverage on Aegis Learning from “International Expansion”
Focus on Profitable Growth
Local Infrastructure Aegis Infrastructure
Key Highlights
• Revenues of Rs 303 Crs with EBITDA of Rs 41.7 Crs for Q4 2011
with EBIDTA Margin of 13.8%
• Increase of 56% in Revenue and 235% in EBIDTA, as compared to
Q4 of the last year
• Revenue for FY 2011-12 stands at Rs 998 Crs with EBITDA of Rs
108.5 with EBIDTA Margin of 11%.
• Revenue jump of 69% and EBIDTA of 107% in the last financial year
• On strong growth path with our key 10 cube strategy & significant
increase in OEM partnerships
Let’s begin!
