GLOBAL OUTLOOK
Global GDP in real term is expected to grow slower in 2023 and 2024 compared to 2022.
This is mainly on account of high inflation and monitory policy implemented to tame the
inflation by central banks world over. However, in a clear shift to center of gravity of
global Growth, strongest growth is expected to be in emerging Asian economies while the
growth in Europe and US is expected to be a subdued one. In terms of sectors, service
sectors and improved consumer spending post pandemic is forecasted to contribute more
compared to industrial output which may remain little sluggish due to continued monitory
policy tightening by major central banks across the globe. Among the major economies,
India continues to be a bright spot and forecasted to be the fastest growing major
economies for foreseeable future. With India leading the pack on the back of huge
demographic dividend, scale is slowly but surely tilting towards developing economies to
be the epicenter of global growth in times to come.
Global Geospatial market is expected to grow from current USD 451 Billion to USD 681
billion at impressive CAGR of 14.68% from 2022 to 2025 and may accelerate further at CAGR
of 16.1% from 2025 to 2030. This growth would mainly be driven by public policy reform,
transition of Geospatial technology to enterprise solution and increased integration of
spatial analytics in decision support system across multiple sectors.
INDIAN GEOSPATIAL INDUSTRY
In 2022, the Indian Geospatial Industry size was INR 28,000 crore and India is expected
to be the fastest growing region for next few years. The Indian geospatial services and
solutions market (Domestic as well as exports) have got significant boost due to the
policy reforms in form of geospatial data acquisition policy 2021, drone rules 2021 and
space sector reform. New geospatial Policy 2022 enacted by GoI puts strong emphasis on
strengthening Geospatial sector to support national development, economic prosperity and a
thriving information economy. In parallel Department of Space ( Through IN-SPACe) too is
working on the decadal vision for Indian space-tech economy to grow it from current size
of USD 8 Billion to USD 44 Billion by 2033 with downstream earth observation (EO) sector
accounting for USD 8 Billion.
This momentum will continue on the back of increased focus on creating digital public
infrastructure and many flagship initiatives of GoI which involves Geospatial as key
technology piece. AI/ML, IoT, 5G and Digital twin would be the key technology drivers
where fusion of some of these technologies with Geospatial will help address plethora of
use cases and business workflow need with dynamic and accurate analysis for improved
decision support.
In Indian context Defence and intelligence would have maximum market share followed by
urban development and utilities. Apart from it land records, disaster management,
agriculture & forest, infrastructure and logistics would continue to be a significant
consumer of geospatial technology and data. Further, more data can be available from www.ibef.org
Disclaimer: This information has been given on the basis of external sources and
Company is not responsible for any error in data as mentioned above
COMPANY OVERVIEW
The Company is engaged in design and development of Indigenous Geospatial software
known as IGiS (Integrated GIS and Image Processing Software) in joint development
partnership with SAC-ISRO. Your Company has developed multitudes of verticalized product
and solution based on IGiS for segments like urban, Land records management, agriculture,
defense, forest, law enforcement, utilities etc.., which caters to the specific business
need of respective segments using integrated GIS and remote sensing technology.
Your company has the technical support of Space Application Centre, the premiere
R&D laboratory of the Indian Space Research Organisation, Government of India.
SAC-ISRO has a long heritage of application of image processing and GIS for its projects
and the Company has built further on it to mature IGiS into a world class technology
platform.
On technology front, IGiS has a unique proposition of being an integrated technology
platform, which enables us to provide end-to-end Geomatics solutions for our customers.
Further to this IGiS in conjunction with various emerging technologies enables our
customer to have efficient and near real time decision support system. Backed by the
domain knowledge and know-how provided by ISRO, we continue to innovate and enhance our
products and solutions in line with technological trends and market needs.
Your Company is certified for ISO 9001:2015 for providing geomatics solutions in the
area of GIS, IP, CAD and location based services, ISO 27001:2013 for information security
management system and CMMi3 for quality and capability maturity standards. Your company is
also a technical member if OGC (Open Geospatial Consortium) and its flagship product IGiS
is compliant to OGC standards.
PERFORMANCE SNAPSHOT
During the year under review the Financial Snapshot is mentioned below:
(Rs. in Lakhs)
Particulars |
2022-23 |
2021-22 |
Revenue from operations |
1700.32 |
3302.74 |
Depreciation |
121.56 |
108.06 |
Profit before tax |
103.05 |
262.11 |
(-)Tax |
44.61 |
(65.1) |
Profit After tax |
58.44 |
197.01 |
As Company is operating in single segment, hence segment reporting is not applicable.
The financial year 2022-23 has presented both challenges and opportunities to your
Company. During this year, your Companys revenue from operations stands at Rs 1700.32
Lakhs, decrease about 51% as compared to revenue from operations of previous financial
year which was Rs 3302.74 Lakhs. Profit after tax of current financial year stands at Rs
58.44 Lakhs, decrease about 70% as compared to net profit after tax of previous financial
year which was Rs 197.01 lakhs and Companys net profit achieved to Rs 58.44 Lakhs.
In line with “Make in India” initiative of the Government of India, your
company has contributed significantly in the field of GIS and Image Processing software
technology. Your Company has continued with its research and development activities with
regard to its product in partnership with ISRO to strengthen its overall position in the
Geospatial software and application market.
Your company has increased its focus on software and application business centred
around its flagship platform IGiS which in medium to long term will help drive more
operational efficiency, improved margins and free cash flow. Your company would continue
to focus on “Customer First” approach to align its solution and offering in
line with evolving customer need. This approach has allowed your company to acquire new
customers in domains like urban development, defence, Infrastructure, Land Records,
E-governance etc.. Our partnership with large MSIs (Master System Integrator) and GIS
service providers has further enhanced the reach of your company.
ACCOUNTING TREATMENT
Financial statements has been prepared in accordance the Companies (Indian Accounting
Standards) Rules, 2015, as amended, (“Ind AS”) and other accounting principles
generally accepted in India.
FUTURE OUTLOOK
Geospatial data and technology is expected to play a significant role for India to not
only be a USD 5 trillion economy but to do it sustainably. GIS technology plays important
role in Sustainable urban planning, Critical Infrastructure planning, Smart agriculture,
Smart health, Disaster early warning, Effective disaster response etc.. Collaborative use
of GIS technology along with AI/ML, IoT, Bigdata , BIM and Digital etc.. has opened up new
dimension of addressing the real world problems across multiple domains. Collaborative use
of multiple technologies would help emergence of new business model aided by cloud
deployment to drive the growth of geospatial technology and solution in times to come.
Your company continues to acquire more customers in urban and smart city domain.
We see continued momentum in this domain for medium term as many cities look forward to
use GIS to curb leakage of revenue by the way of Geo-enabled property tax management,
encroachment monitoring, capital project monitoring and control and 3D GIS for sustainable
and resilient city planning.
You company continues its steady and firm inroads into the defense and homeland
security through new implementations. Make In India product is the key strategic
advantage for us in this segment.
For vibrant rural economy multiple intervention to improve farm productivity and
unlocking of value of asset in form of rural land is very important drivers. You company
would tap into this opportunity with its offering in form of vertical solutions like IGiS
- LIS and IGiS -AIS. Your company has developed its revamped Web based solution to
address the need of utility management across domains like water, gas, power and telecom.
Geospatial Data Acquisition Guidelines 2021 and New Geospatial Policy 2022 democratizes
the use of Geospatial data to innovate and collaborate among players with complementing
capabilities. This coupled with thrust on private sector participation in Indian
Space-tech sector through regulatory reforms by Government of India would be the complete
game changer for Indian Geospatial Industry. Your company on back of its existing
partnership with ISRO is already working on multiple front to seize these opportunities.
Details of Significant Changes in the Key Financial Ratios and Return on Net Worth
Pursuant to amendment made in Schedule V to the SEBI Listing Regulations, details of
significant changes (i.e. change of 25% or more as compared to the immediately previous
financial year) in Key Financial Ratios is as below and since there were no changes above
25% as compared to immediately previous financial year, the explanation for the change in
financial ratios is not required.
Particular |
FY ended 31st March, 2023 |
FY ended 31st March, 2022 |
Change between current FY and previous FY (in %) |
Explanation for the change in financial ratios, If applicable |
Trade Receivables Turnover Ratio (in times) |
1.18 |
2.11 |
(44.11) |
Decrease was primarily due to decrease in turnover |
Current Ratio |
1.96 |
1.72 |
14.97 |
N.A. |
Debt Equity Ratio |
0.63 |
0.36 |
76.05 |
Increase was primarily due to increase in Total Debt |
Interest Coverage Ratio |
2.34 |
3.36 |
(30) |
Decrease was primarily due to decrease in EBIT |
Operating Profit Margin (%) |
6.06% |
7.94% |
(23.67) |
N.A. |
Net Profit Margin |
3.44% |
5.97% |
(42.38) |
Decrease was primarily due to decrease in turnover |
Return on net worth |
0.69% |
2.76% |
(75) |
Decrease was primarily due to decrease in profit after tax |
RISKS AND CONCERNS
As it is normal and prevalent for any business, the Company also is likely to face
competition from existing companies. There can be risks inherent in meeting unforeseen
situations, not common in the industry. Your Company also recognizes the risks associated
with business and takes adequate measures to address the associated risks and concern.
Except as otherwise stated and the Risk factors mentioned here, the following important
factors could also cause the actual results to differ materiality from the expectations:
• Changes in domestic laws, regulations and taxes.
• Failure to obtain and retain certain approvals and licenses.
• Our projects have a long gestation period and our accounting statements reflect
the financial performance of the projects undertaken and / or completed in a particular
period.
• Termination of customer contracts.
• Our Company has significant business through contracts entered into with
entities or organizations owned by or set up by the government for a significant portion
of our revenues which may expose us to risks, including additional regulatory scrutiny,
delayed receipt of collectibles and pricing pressure
• Disruption in sources of funding and interest rates could adversely affect the
liquidity and financial position of the Company however, the Company meets its funding
requirements from diverse sources i.e. Shareholder funding, secured and unsecured loan and
several other credit facilities.
The Company has laid down a well-defined risk management mechanism covering the risk
mapping, risk exposure, potential impact and risk mitigation process. The Board
periodically reviews the risk and suggests the steps to be taken to control and mitigate
the same through properly defined framework.
INTERNAL CONTROL SYSTEMS AND ADEQUACY
Your company has proper and adequate system of internal controls to ensure that all
assets are safeguarded, and protected against loss from unauthorized use or disposition,
and that transactions are authorized, recorded and reported correctly.
The internal control systems are supplemented by an extensive programme of internal
audits, reviews by management, and documented policies, guidelines and procedures. The
internal control systems are designed to ensure that the financial and other records are
reliable for preparing financial statements and other data, and for maintaining
accountability of assets.
HUMAN RESOURCES
Being technology Product Company, its human resource is the key enabler of growth for
organisations. In Post Covid era, paradigm of employee engagement and motivation has
completely changed. In this context the core endeavour of HR team has been to build a
flexible and resilient organisation and working environment which foster innovation and
high productivity. You company has taken multiple initiative in terms of internal
training, workshops and policy intervention for high level of employee engagement and
building a core team which is aligned with long term vision of Organisation. As on 31st
March 2023, there are 202 employees appointed on payroll of the company.
Continuing with a strong focus on acquiring the right talent and retaining the
potential talent , business partnering role was introduced in Human Resources. Apart from
lateral hiring, a large pool was built from select Institutes of repute in every function
to on-board and train the academically bright students to build leaders of tomorrow.
The business transformation initiatives across SGL is enabling the decentralised
management with professional leadership team responsible for delivering the result aligned
with larger organisational objectives. We would continue to focus on strong operational
processes and high level of employee engagement for building team with growth mind set.
OPPORTUNITIES AND THREATS
As Geospatial technology is moving to main stream decision support system along with
policy-reforms will come up with huge boost for geospatial application innovations and its
usage. Furthermore, TAM for application of company likely to grow faster than industry
average and in presence of limited vertical solution players, Company can fill the gap.
Fast changing technology land scape and business model can make companys offering
redundant and out of sync very fast. In addition, heavy dependence on solution projects
for revenue is also hazard for company.
CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis describing the Companys
objectives, projections estimates, and exceptions may be "forward looking
statements" within the meaning of applicable laws and regulations. These statements
are based on certain assumptions and expectations of future events. Actual results may
differ materially from those expressed or implied. Important factor that could make a
difference to the Companys operations include economic conditions affecting demand/
supply and price conditions in the domestic and overseas markets in which the Company
operates, changes in the Government regulations, tax laws and other statutes and other
incidental factor. The Company assumes no responsibility to publicly amend, modify or
revise any forward looking statements, on the basis of any subsequent developments,
information or events.
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