ESDS Software Solution Ltd - Unlisted Shares
Fundamentals
- Current Price
- ₹510
- Market Cap
- ₹4,737.60 Cr
- ISIN
- INE0DRI01029
- Face Value
- ₹1
- P/E Ratio
- 377.78
- EPS
- 1.35
- P/B Ratio
- 22.55
- Book Value
- 22.62
- Debt / Equity Ratio
- 0.342
Key Financials
Profit & Loss
| Metric | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|
| Revenue from Operations | 158.57 | 171.93 | 195.36 | 207.57 | 286.5 |
| Growth % | - | 8.42% | 13.63% | 6.25% | 38.04% |
| Operating Expenses | 108.81 | 110.30 | 136.67 | 160.09 | 184.5 |
| Growth % | - | 1.36% | 23.92% | 17.13% | 15.22% |
| Operating Profit | 49.76 | 61.63 | 58.69 | 47.48 | 102.1 |
| Op. Profit Margin % | 31.38% | 35.85% | 30.04% | 22.87% | 35.62% |
| Other Income | 1.96 | 2.17 | 3.33 | 4.68 | 5.6 |
| Finance Costs | 11.32 | 17.65 | 17.72 | 25.93 | 31.6 |
| Depreciation | 36.93 | 37.39 | 42.95 | 49.15 | 52.6 |
| Exceptional Items | - | - | 3.50 | 4.78 | 1.3 |
| Profit Before Tax | 3.48 | 8.77 | -2.1 | -27.7 | 22.3 |
| Tax | 2.54 | 3.28 | 0.52 | -5.24 | 8.7 |
| Tax % | 1.60% | 1.91% | 0.26% | -2.52% | 3.03% |
| Profit After Tax | 0.94 | 5.48 | -2.66 | -22.46 | 13.61 |
| Growth % | - | 486.63% | -148.55% | 743.41% | -160.60% |
| PAT % | 0.59% | 3.19% | -1.36% | -10.82% | 4.75% |
| Diluted EPS | 0.04 | 0.96 | -0.42 | -2.42 | 1.4 |
Company Financials
| Metric | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|
| Equity Capital | 5.22 | 5.22 | 9.16 | 9.29 | 9.29 |
| Reserves | 145.68 | 181.38 | 196.12 | 200.87 | 217.22 |
| Total Equity | 150.90 | 186.61 | 205.27 | 210.15 | 226.51 |
| Borrowings | - | - | - | - | - |
| Other Non-Current Liabilities | 119.40 | 112.37 | 138.43 | 157.96 | 184.28 |
| Total Non current Liabilities | 119.40 | 112.37 | 138.43 | 157.96 | 184.3 |
| Borrowings | 15.07 | 10.19 | 67.87 | 71.85 | 75.91 |
| Other Current Liabilities | 126.23 | 151.27 | 110.96 | 60.74 | 61.02 |
| Total current Liabilities | 141.30 | 161.46 | 178.83 | 132.59 | 136.9 |
| Equity + Liabilities | 411.60 | 460.44 | 522.53 | 500.70 | 547.71 |
| Fixed Assets (incl. WIP) | 224.95 | 211.61 | 220.86 | 207.72 | 222.83 |
| Other Non Current Assets | 84.26 | 127.24 | 105.91 | 112.22 | 112.21 |
| Total Non current Assets | 309.21 | 338.85 | 326.76 | 319.94 | 335.0 |
| Trade Receivables | 46.09 | 46.62 | 63.85 | 57.13 | 69.00 |
| Cash & Cash Equivalents | 0.66 | 15.20 | 49.70 | 19.89 | 2.25 |
| Other Current Assets | 55.65 | 59.77 | 82.22 | 103.74 | 141.42 |
| Total current Assets | 102.39 | 121.59 | 195.77 | 180.76 | 212.7 |
| Total Assets | 411.60 | 460.44 | 522.53 | 500.70 | 547.71 |
Shareholding Pattern
- Piyush Somani
- 28.91%%
- PO Somani Family Trust
- 24.19%%
- Sarla Somani
- 2.02%%
- SAGF II Holdings LLC
- 10.23%%
- South Asia Growth Fund II, L.P. (SAGF)
- 22.30%%
- GEF ESDS Partners, L.L.C. (GEPL)
- 8.16%%
- Esds Employee Benfit Trust
- 2.56%%
- Othes
- 1.63%%
Strengths & Weaknesses
Strengths
- Experienced Promoter: Mr. Piyush Somani, with over two decades of industry experience, has helped establish a strong market presence in managed services and cloud computing solutions.
- Growing Operations and Profitability: ESDS operates four data centres across India, contributing to a 17% CAGR in revenue over the past three years, with an expected Rs 282 crore in revenue for FY 2024. Operating profitability is projected to improve to 34% in FY 2024, up from 23.9% in FY 2023, driven by expansion and cost improvements. Revenue is expected to grow 40% in FY 2025, maintaining profitability at 33-35%.
- Diverse Client Base: With over 600 clients across government, corporate, and BFSI sectors, ESDS has strong revenue visibility, as 35% of its revenue comes from its top 10 clients.
Weaknesses
- High Working Capital Needs: Elevated receivables (above 100 days) due to quarterly billing and credit terms, coupled with ramped-up operations, result in a significant working capital requirement. Effective management of this will be crucial for cash flow.
- Financial Risk: Expanding data centres requires high capex and opex. The company spent Rs 130-150 crore in the past three years, with continued elevated spending. Higher interest rates have increased financial risk, with a 1.2x liabilities to net worth ratio as of March 31, 2024. Maintaining margins and managing costs at lower interest rates will be key.
About ESDS Software Solution Ltd
Founded in 2005 in Nashik and led by Mr. Piyush Somani, ESDS offers IT infrastructure services, including cloud computing, colocation data centre infrastructure, SaaS, and managed services.
Board of Directors
- Mr. Piyush Somani - Chairman-cum-Managing Director
- Ms. Komal Somani - Whole Time Director
- Mr. Alipt Sharma - Nominee Director
- Mr. Dhandapani T. G. - Independent Director
- Ms. Pamela Kumar - Independent Director
- Mr. Venkatesh Natarajan - Independent Director
Senior Management
- Mr. Piyush Somani - Chairman-cum-Managing Director
- Mr. Nadukuru Sita Ramaiah - Chief Financial Officer
- Mr. Prasad Deokar - Company Secretary