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Systematix Corporate Services Ltd Management Discussions

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Jul 19, 2024|09:55:00 AM

Systematix Corporate Services Ltd Share Price Management Discussions

A. OVERVIEW & OUTLOOK

Indias recovery from the pandemic was relatively quick and growth in the upcoming year wil-be supported by solid domestic demand and a pickup in private capita-investment.

As per Provisiona-Estimates of Nationa-Income 2022-23 release by Nationa-Statistica-Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI), Rea-GDP or GDP at Constant (2011-12) Prices in the year 2022-23 is estimated to attain a leve-of ? 160.06 lakh crore, as against the First Revised Estimates of GDP for the year 2021-22 of ? 149.26 lakh crore.

The growth in rea-GDP during 2022-23 is estimated at 7.2 per cent as compared to 9.1 per cent in 2021-22.

The Indian Rupee declined by 8.4% against the US dollar over the last fiscal, followed by Chinese yuan (8.3%), Korean won (7.9%) and Taiwan dollar (7.1%).

Indian economy is expected to be amongst the fastest growing major economies in 2023-24, backed by strong domestic drivers and strengthening macroeconomic fundamentals. The Monetary Policy Report say that Indian financia-sector shal-remain stable and headline inflation is expected to moderate from its prevailing elevated levels and move below the upper tolerance band during 2023-24.

However, the globa-economy is yet again at a highly uncertain moment, with the cumulative effects of the past three years of adverse shocks most notably, the COVID-19 pandemic and Russias invasion of Ukraine—manifesting in unforeseen ways.

Spurred by pent-up demand, lingering supply disruptions and commodity price spikes, inflation reached multi-decade highs last year in many economies, leading centra-banks to tighten aggressively to bring it back toward their targets and keep inflation expectations anchored.

In between the globa-uncertainties, Indian economy has demonstrated remarkable resilience. Steps to promote ease of doing business, skilled manpower, presence of natura-resources, libera-FDI policies, huge domestic market and prospects of healthy GDP growth have made India an attractive destination for foreign investors. Thus, going forward, India is expected to see relatively stronger growth.

B. INDUSTRY STRUCTURE AND DEVELOPMENTS - CAPITA-MARKETS

Despite globa-macroeconomic uncertainty, unprecedented inflation, monetary policy tightening, volatile markets, etc. Indian capita-markets performed wel-in the financia-year 2022-2023. The number of SMEs coming with IPOs was almost double compared to the FY 2022 (til-November 2021), and the tota-funds raised by them were almost three times the funds raised by them in the same period last year. This year also saw the largest IPO ever in the history of India – in May 2022, the Centra-Government diluted its stake in the Life Insurance Corporation (LIC) of India and listed it on the stock exchanges.

In second half of financia-year 2022-2023 the domestic equity markets began on a positive note, amidst strong buying by FPIs and robust corporate earnings. The benchmark BSE Sensex touched an all-time high of 63,284 on December 1, 2022. In early fourth quarter, rising US Fed termina-rate projections amidst tight labour market conditions dampened market sentiments. Domestic equities remained under pressure in March 2023 amidst spillovers triggered by the banking turmoi-in the US and Europe. The BSE banking index (the Bankex), however, gained by 0.9 per cent in March 2023 in contrast to declines of 25.2 per cent and 13.8 per cent in the US and European banking benchmarks, respectively. Most importantly, the Indian equity markets have remained resilient as compared to most Emerging Market Economies in 2022-23, making India one of the most attractive investment destination for globa-investors.

Broking Industry and Our Business:

The brokerage industry generated revenue of ? 382.00 Bn in FY 2023, expanding at a compound annua-growth rate (CAGR) of 13.73% from FY 2019 to FY 2023.

The average daily traded volumes (ADTO) for the equity markets during FY2023 grew a whopping 121% YoY to ? 153,900 Bn. The overal-cash market ADTO declined by 21% YoY to ? 575.6 Bn. Within Derivatives, options volume rose 125% YoY to INR 152,200 Bn, while future volume declined by 4% YoY to ? 1,100 Bn. Amongst cash market participants, retai-constituted 47% of tota-cash volume, institution 25% and proprietary at 28%. The proportion of DII in the cash market was 10% in FY2023.

During the financia-year, SEBI issued new guidelines for settlement of running accounts of clients funds or securities lying with stock brokers. Under the new guidelines, SEBI decided that the settlement of running account of funds of the client shal-be done by the Trading Member after considering the End of the Day (EOD) obligation of funds as on the date of settlement across al-exchanges on the first Friday of the quarter for al-the clients. Further, the clients can opt for monthly settlement. The new regulation came into effect from October 1, 2022. Indian stock markets also shifted to shorter trading cycle settlement (T+1) on January 27. 2023 to bring in operationa-efficiency.

Retai-broking, has become increasingly dynamic. Entries of new players, digitisation & disruption, regulations have changed the way business has been shaping up. Brokers are now restructuring their business strategy to diversify revenue streams. Value added services, including wealth management, research, advisory, AMC and financia-planning has been the focus to ensure maximum customers engagement and enrich wealth creation journey of clients. Fund based activity, including margin funding and loan against shares, is expected to enable sustained contribution to earnings.

Our PCG (Private Client Group) and Retai-Broking businesses was impacted this year due to certain limits on financing by our bankers. However, with the financing situation improving towards the year end, we have started to get back to our growth momentum in the business.

Our Institutiona-Broking business provides offerings in the forms of cash and derivatives to domestic and foreign institutions. We continued to acquire new empanelment and grew our active clients to over 140 in FY23. We witnessed strong improvement in domestic client rankings in severa-key accounts led by broad-based team servicing, high quality research product and strong execution across our trading desk. Our research product consists of 150+ companies covering 15 sectors. Our corporate access domain has always been a focus area with execution of successfu-events, especially Industry Specific Investor Conferences in India.

Investment Banking & Merchant Banking:

The largest IPO in 2022-23 which also happened to be the largest ever Indian IPO, was from Life Insurance Corp. of India amounting to ? 21,008.48 crore, followed by Delhivery ? 5,235 crore and Globa-Health ? 2,206 crore.

However, overal-public equity fundraising in India decreased by 56% to ? 76,076 crore in 2022-23 from ? 1,73,728 crore in 2021-22.

Further, 37 Indian companies raised ? 52,116 crore through main board initia-public offerings (IPOs) in the financia-year 2022-23, according to a report. This amount is less than half of the all-time high of ? 1,11,547 crore raised by 53 IPOs in 2021-22. The market recorded less retai-participation as the average number of applications from retai-investors reduced to just ? 5.64 lakh, down from ? 13.32 lakh in 2021-22 and ? 12.73 lakh in 2020-21.

Year 2022 signalled a recalibration for venture capita-investments globally after a record capita-influx over the last few years. Within Asia-Pacific, the share of India-focused Venture Capita-investments reached 20% for the first time and India continued to account for 5% of globa-Venture Capita-funding in line with 2021.

However, Funding momentum in India similarly softened in line with the globa-slowdown as tota-dea-value saw a compression from $38.5 billion to $25.7 billion from 2021 to 2022 dea-volume saw margina-1.1x growth, reaching 1,611 deals led by an expansion in seed to series B deals.

Even if the quantum of deals is not as high as in previous years, the best quality founders continue to raise funds. We believe this is a great time to do business with such founders.

During FY2023, we at Systematix were associated with severa-marquee transactions across listed and unlisted companies. We were advisors to one of Indias largest knitted garements manufacturers - Eastman Exports – for a ? 3,500 million Private Equity Fund raiser, one of the fastest growing Media Technology Services Companies – White Turtle Studios – for a ? 2,000 million M&A transaction, Indias largest AAC Blocks & walling solutions company – Magicrete Building Solutions – for a ? 700 million fund raise, besides severa-other private fund raise transactions. We were also Book Running Lead Manager (BRLM) to Indias premium Wind Energy O&M Company – Inox Green Energy Services –for their ? 7,400 million IPO. We follow an expertise-led approach focusing on specific sub-segments of strength, where we have deep understanding of industries, including industry trends, corporate and investor relationships and execution track record. And hence our majority of transaction coverage is in sectors like Consumption, Healthcare, Industrials and

Logistics / Supply Chain, with a strong focus on emerging trends in each of these industries. We continue to have rich pipeline across capita-markets and advisory with the year FY2023 expected seeing us make significant strides in IPOs (Initia-Public Offers) and QIP (Qualified Institutiona-Placement) transactions.

Wealth Management:

While 2021 was the year in which globa-financia-wealth expanded by a massive 10.6% YoY – its fastest pace in over a decade – 2022 witnessed a decline in wealth on the back of geopolitica-tensions. Even as 4 out of 10 UHNIs witnessed an increase in their walth in 2022, the wealth amassed by this segment plummeted by 10% in US Dollar terms, on a globa-basis.

In keeping with the changing times and new-age trends, the wealth management industry is undergoing significant alterations in the present era. One of the most prominent shifts is the transfer of wealth from the older generation to the younger ones, accompanied by the rise of self-made millionaires and billionaires across al-age groups. This phenomenon is pushing the wealth managers to tweak their approach towards the clients. Accordingly, wealth managers have found it necessary to undertake product side evolution, making a decisive shift from mere debt and equity solutions to alternatives and other sophisticated products to enable optima-diversification and foster an efficient risk-reward equation.

We at Systematix have been consistently adding clients in the Wealth Management business, thereby steadily growing our assets while also growing our fee pool.

C. OUTLOOK FOR 2024 – INFRA & GREEN INDIA PUSH

Indias economy is firmly out of the throes of the pandemic blues and better poised. The Chief Economic Adviser V. Anantha Nageswaran elaborate elucidation on the economys bright prospects can wel-be seen as a fresh officia-nudge to the private sector to stop worrying and restart investing. We believe that the market is expected to get strong momentum, better macro fundamentals with inflation and trade deficits ease considering important pending law reforms and 2024 Lok Sabha election.

The Indian government has been steadily increasing its capita-expenditure, as policy makers realized the need for high quality sustainable infrastructure to improve the efficiency of operations in India and become globally competitive. Since 2014, centra-& state governments have been systematically increasing infrastructure. While the Centre focuses on multi-state developmenta-projects, the states target granular city/district leve-projects piggy backing off centra-projects to provide last mile capabilities. Considering Private capex on the cusp of a revival, private capita-expenditure can be a fruitfu-option for the company to diversify the business.

Further, The Union Budget 2023-24 highlights ‘Green Growth among the key priorities in the economic agenda and that is a welcome step. There is a clear intent to boost investment in the green energy space with capita-outlay of ? 35,000 crore for energy transition, target to produce 5 MMT of Green Hydrogen annually by 2030, funding viability for battery storage, and future investment to improve grid transmission for better inter-state RE evacuation.

D. OPPORTUNITIES/ THREATS/ STRENGTHS

Opportunities: -Long-term economic outlook positive, wil-lead to opportunity for financia-services; -Growing Financia-Services industrys share of wallet for disposable income; -Regulatory reforms would aid greater participation by al-class of investors; -Leveraging technology to enable best practices and processes.

Threats: -Execution risk; -Short term economic slowdown impacting investor sentiments and business activities; -Slowdown in globa-liquidity flows;

-Increased intensity of competition from loca-and globa-players, especially the players with strong technology edge in the business;

Strengths: -Strong Brand name; -Strong deals execution track record; -Experienced top management; -Integrated financia-services provider; -Independent and insightfu-research; -State of art infrastructure.

E. RISKS AND CONCERNS

The company being in financia-sector highly exposed to major market risks i.e. Credit risk, Market risk and Liquidity risk, Operationa-risk. At Systematix, we have adequate Risk Management Techniques and safeguards in place to ensure that major risks are properly assessed, analyzed and mitigation tools are applied and that the identified risks are commensurate with the potentia-returns.

Since the company in the course of doing it business with various clients and counter parties is exposed to various risks. These risks can be broadly classified to Credit risk, Market risk, Liquidity risk and Operationa-risk. Where the company focuses majorly in evaluating and mitigating Credit risks, Market risks and Operationa-risk which its feels can affects the business drastically.

i. Market Risk

Trading and investment in assets like equity, commodities, debts, foreign currency and derivatives is exposed to economic growth levels, inflation, prices, interest rates, foreign exchange rates and other macro-economic factors. Since, the companys exposure to market risk is determined by a number of factors including size, composition and diversification of positions held and market volatility, The Market Risk Management minimize market risk exposures within acceptable parameters, while optimizing the return on risk.

ii. Credit Risk

In order to manage and contro-exposure to Credit risks in the Capita-market the company collects upfront margins in the form of funds and/or securities/ commodities from clients and trading members against their trading positions. The company also monitors positions, margins, mark to market losses and risks on rea-time basis through risk management systems and policies specially designed to mitigate the credit risk.

Our approach in the financing business is to effective implementation of the loan policy which the Company follows to accept borrowers and loan proposals. To reduce the credit risk in financing, the Company performs a detailed credit assessment on the prospective borrower or seeks security over some assets of the borrower or a guarantee from a third party.

iii. Operationa-Risk

The company has adopted key risk indicators that assess Operationa-risk i.e., Interna-fraud, Externa-fraud, Technology failures, Process execution and Business practices.

The company has set benchmarks for abovementioned risks and track and measure the same through quantifiable data. Subsequently, the management of the company preemptively makes decisions on whether to accept, mitigate, or avoid risk.

Risk management

Equity share capital, other equity and secured borrowings from the banks are considered for the purpose of Companys capita-management. The Company aims to manage its capita-efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to its shareholders. The capita-structure of the Company is based on managements judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. The Company considers the amount of capita-in proportion to risk and manages the capita-structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capita-structure, the Company may borrow from externa-parties such as banks or financia-institutions. The Companys policy is to maintain a stable and strong capita-structure with a focus on tota-equity so as to maintain shareholder, creditor and stakeholder confidence to sustain future development and growth of its business. The Company wil-take appropriate steps in order to maintain, or if necessary adjust, its capita-structure.

F. INTERNA-CONTRO-SYSTEMS & THEIR ADEQUACY

The Company has adequate systems of interna-control, to ensure that al-assets are safeguarded and protected against loss from unauthorized use and procedures commensurate with the size and nature of business. The Company continuously upgrades its systems in line with the best availability practices. These systems are supported by periodica-reviews by the management and standard policies and guidelines to ensure that financia-and other records are prepared accurately.

G. SYSTEMATIX OVERVIEW

Systematix Corporate Services Limited (SCSL) has come a long way since its incorporation more than three decades ago. The Company is a SEBI registered ‘Category I Merchant Banker and consists of 5 subsidiaries. Your Companys operations are organized around three broad business lines – Public Issues / Follow on Offerings / Right issues, Debt Syndication and Private Placements for its prestigious corporate clients. With a knowledge centric approach and our mission to provide our customers with secure, customized and comprehensive financia-solutions and thereby achieve sustained growth we have restructured ourselves through a hub-and-spoke mode-and have become a one stop service provider of financia-services across various assets classes during the year. Through its five subsidiaries, your Company has established its presence in the Wealth Management, Institutiona-& HNI / UHNI Broking, Commodities and Loan Against Shares (through RBI registered NBFC). Systematix Corporate Services Ltd. through its associates has also set up a SEBI approved Alternative Investment funds (AIF). Your Company, through its subsidiaries, has facilities at around 8 locations via branches & 190+ franchisees, spread across 4 states, targeting a strong client base across India.

This strategy is complemented by the following strengths: -Diversified revenue streams with a balanced mix of revenue from various businesses -Strong and liquid balance sheet -Cost flexibility -Risk Management -People and culture

As a result, Systematix has emerged as a truly diversified financia-services firm with a wide selection of products and services spanning multiple asset classes and consumer segments. Now SCS-offers Equity, Commodities, Currency, IRF, SLBs, Depository Service, Online Trading, IPO and Mutua-Fund Distribution, PMS, Loan against Shares apart from Merchant and Investment banking services to various clients. We maintain our focus on building a long term sustainable business structured around the strengths of our scalable technology platform, enhanced customer service and the introduction of applications that enhance customer experience.

H. SERVICES OFFERED

i. Merchant Banking & Investment Banking:

Merchant Banking & Investment Banking Division comprises of a group of highly experienced professionals with diverse expertise in investment advisory with specia-skills in assisting medium sized companies raising growth capital, companies going public and advising promoters or stakeholders (with a specia-focus on Private Equity funds) on stake sale. We help companies to raise capita-during the growth and expansion phases as wel-as acquisition financing and structuring the dea-to maximize value for al-its stakeholders. The comprehensive range of services from conception to completion provided under one roof reinforces our commitment on quality assurances through tota-involvement.

Each senior member of the team has more than a decade experience in the capita-markets and have handled a variety of deals across severa-key sectors such as hospitality, automobiles, retail, engineering, media & entertainment, infrastructure, logistics, metals & mining, pharmaceuticals, power, banking & financia-services, telecom & IT among others.

During the year under review, the division has gone below by 8.3 % to ? 2,810.56 Lakh as compared to last year of ? 3,066.01 Lakh.

Our offerings are as follows: -Open Offers/ Delisting / Buy-backs; -IPOs/ Rights Issues/Follow-on Public Offers; -Equity / Debt placements; -Valuations; -ESOP Advisory; -Other Corporate Advisory Services. ii. Financing & Other Activities:

The income from financing & other activities was ? 902.22 Lakh as compared to previous year ? 499.46 Lakh, an 80.6% increase over the preceding year.

The Companys product offerings include activities like financing against shares and margin funding.

iii. Broking activities:

The broking division of the company focuses on bridging the gap between the physica-and the digita-world, catering to Equity, Derivatives, Commodities and Currency markets. We have robust dedicated advisory desk for mass retai-and affluent clients. We focus on enhanced customer experience, high quality advisory, digita-initiative, distribution of assets based product, system driven trading products and network expansion.

The income from broking activities stood at ? 4,266.44 lakhs as compared to previous year at ? 5,618.74 lakhs.

iv. Wealth Management:

We have built our Wealth Management offering with a passion for excellence. The Wealth Management team at Systematix works with the objective of providing our clients with a bouquet of smart investment products, each analyzed and evaluated meticulously and thereafter blended together to precisely meet your unique investment needs. We have an enviable research team that spans multiple asset classes bringing insightfu-research to our clients. The proximity and connectivity of our Management with industry enables us to view in closer detail, the companies we study for investing.

Our approach is entirely client-centric, which means that the services and products wil-be tailored to suit their specific requirements.

Distribution and marketing income comprises commission, brokerage and marketing income generated from distribution of third party products such as insurance, mutua-funds, IPO and online marketing on the Companys website. A part of the income is contributed by commission and brokerage on Mutua-Fund Distribution from the wealth management platform.

During the year companys income from distribution and marketing was ? 2,807.76 Lakhs as compared to ? 4,427.97 Lakh, a 36.6% decrease from last year.

v. Portfolio Management Services:

Portfolio Management Service (PMS) is a sophisticated investment vehicle that offers customized investment strategies to capitalize on opportunities in the market. Efficient Investment Management requires time, knowledge, understanding, expertise and constant monitoring of developments in micro and macro-economic environment. That is difficult for investors because of involvement in its own business profession and other activities. For those who need an expert to help to manage their investments, PMS is the right answer.

Our Portfolio Managers work with clients to design an individua-investment strategy in accordance with their objectives, risk tolerance, and liquidity needs and draw upon the best suited portfolio. In a nut shell, based on our holistic investment approach and innovative product capabilities we offer you very active multi asset class portfolio advisory & management services with personalized attention and active participation of Systematix management. We offer both discretionary and non-discretionary portfolio services.

vi. Research:

Research Team offers incisive, timely, objective and in-depth research across multiple asset classes. Driven by an in-depth understanding of investments and a deep sense of professiona-ethics and integrity, the Systematix Wealth Research team provides unbiased advice to our clients. Being present across the entire spectrum of investment services / products, such as equities, derivatives, fixed income products, currencies, mutua-funds and commodities, Systematix Wealth Research subjects each security in its universe to stringent analytica-rigor to arrive at the fair value. We take pride in our philosophy of offering advice which is in the best interest of our clients. Our emphasis on building long-term relationship ensures that we work closely with our clients empowering them to gain from market opportunities.

Our Research Process is structured around the objective of enabling our Wealth Management Team to create winning portfolios for our Clients across diverse assets, capable of delivering superior returns to investors as wel-as to prevent portfolio erosion in bad times.

The philosophy and goa-of Systematix Wealth Research is to provide investors with a clear analysis that enables them to take a rationa-decision towards achieving the desired profit objectives.

I. FINANCIA-PERFORMANCE HIGHLIGHTS

The financia-statements have been prepared in compliance with the requirements of the Companies Act, 2013 and Generally Accepted Accounting Principles (GAAP) in India.

Table 1: Abridged Statement of Profit and Loss (? in Lakh) –

Particulars FY 2022-23 % of Total FY 2021-22 % of Total
Income Income
Revenue
Income from Operation 7252.20 92.06% 8933.53 98.24%
Other Income 625.20 7.94% 160.10 1.76%
Total 7877.40 100% 9093.63 100%
Expenditure
Employees Cost 3411.26 43.30% 3355 36.89%
Finance Cost 333.33 4.23% 349.38 3.84%
Net loss on fair value changes - - - -
Share of loss from Joint Venture LLP 0.17 0.002% 9.15 0.10%
Impairment on financia-instruments 203.21 2.58% 339.26 3.73%
Depreciation 60.78 0.77% 66.19 0.73%
Other Expenses 3292.47 41.80% 2638.87 29.02%
Total 7301.22 92.69% 6757.85 74.31%

 

Particulars FY 2022-23 % of Total FY 2021-22 % of Total
Income Income
Exceptiona-Items - - - -
Profit Before Tax 576.18 7.31% 2335.78 25.69%
Tax- current & deferred 67.97 0.86% 586.06 6.44%
Profit after Tax 508.21 6.45% 1749.71 19.24%
Other comprehensive income 36.46 0.46% 34.47 0.38%
Tota-comprehensive income for the year 544.67 6.91% 1784.18 19.62%
Earning per Shares (Basic) 3.92 13.48
Earning per Shares (Diluted) 3.92 13.48

The revenues of the Company for the financia-year under review are ? 7,877.40 Lakh as compared to ? 9,093.63 Lakh for the previous year. The profit for the year under review is ? 544.67 Lakh as against the Loss of ? 1,784.18 Lakh in the previous year.

Table 2: Abridged Statement of Profit and Loss (? in Lakh) –

Particulars FY 2022-23 % of Total FY 2021-22 % of Total
Income Income
Revenue
Income from Operation 2753.24 97.96% 2990.69 97.54%
Other Income 57.32 2.03% 75.33 2.46%
Total 2810.56 100% 3066.00 100%
Expenditure
Employee benefits expenses 895.74 31.88% 646.36 21.08%
Finance Cost 196.16 6.98% 194.01 6.33%
Net loss on fair value changes 0 0 0 -
Impairment on financia-instruments (27.18) 0.97% (2.19) 0.07%
Share of loss from Joint Venture LLP 0.17 0.01% 9.15 0.30%
Depreciation 2.42 0.09% 3.63 0.12%
Other Expenses 1197.60 42.62% 655.94 21.39%
Total 2264.91 80.58% 1506.90 49.15%
Exceptiona-Items - - - -
Profit Before Tax 545.65 19.42% 1559.10 50.85%
Tax- current & deferred 151.20 5.37% 323.15 10.54%
Profit after Tax 394.45 14.02% 1235.95 40.31%
Other comprehensive income 1.59 0.06% 11.75 0.38%
Tota-comprehensive income for the year 396.04 14.08% 1247.70 40.69%
Earning per Shares (Basic) 3.04 9.52
Earning per Shares (Diluted) 3.04 9.52

- Performance of Subsidiaries:

Systematix Shares and Stocks (India) Limited:

Particulars FY 2022-23 FY 2021-22 Growth %
Tota-Revenues 4256.24 5588.86 (23.84)%
EBIDT (26.95) 1047.12 (102.57)%
PBT (197.29) 794.12 (124.84)%
PAT (99.49) 571.82 (117.40)%

 

Particulars FY 2022-23 FY 2021-22 Growth %
Tota-Revenues 683.15 267.75 155.15%
EBIDT 294.97 (157.87) 65.15%
PBT 286.14 (166.58) 271.78%
PAT 286.19 (167.96) 270.40%

 

Particulars FY 2022-23 FY 2021-22 Growth %
Tota-Revenues 219.08 231.71 (5.45)%
EBIDT 60.57 184.53 (67.18)%
PBT (58.69) 137.77 (142.60)%
PAT (77.04) 98.57 (178.16)%

 

Particulars FY 2022-23 FY 2021-22 Growth %
Tota-Revenues 10.96 29.52 (62.86)%
EBIDT 4.25 11.98 (0.93)%
PBT 4.24 11.97 (64.60)%
PAT 4.24 12.03 (64.77)%

 

Particulars FY 2022-23 FY 2021-22 Growth %
Tota-Revenues 0.36 0.36 -
EBIDT (3.82) (0.60) (539.30)%
PBT (3.82) (0.60) (539.30)%
PAT (3.82) (0.69) (456.40)%

Details of significant changes in key financia-Ratios:

Sr. No. Particulars 31.03.2023 31.03.2022 change in % Explanation
1. Debtors Turnover Ratio 2.89 3.51 (17.70%) It is favorable because improvement done
in receivable collection by the company.
2. Interest coverage ratio 2.73 7.69 (64.50%) Decrease in revenue led to decrease in
(ICR) profit, which resulted in decrease in ICR.
3. Current ratio 1.43 1.42 0.83% It is on paralle-lines as compared to last
year.
4. Debt Equity Ratio 0.98 1.75 44.23% O/s loans liabilities during the year has
decreased, hence Debt Equity Ratio is also
decreased.
5. Operating Profit Margin 11.55 29.53 60.90% Revenue from operation decreased, hence
operating profit margin also decreased.
6. Net Profit Margin 6.45 19.24 66.47% Decrease in Revenue from Operations
resulted in Decrease in Net Profit margin.
7. Return on Net Worth 5.13 18.24 72.16% Decrease in profit resulted in decrease in
return on net worth.

J. HUMAN RESOURCES

The Company continues to lay emphasis on developing and facilitating optimum human performance through Employee Engagement, Encourage Health and Wellness and Rewards and Recognition. At Systematix, we aim to create learning and development journeys based on output of the talent assessment process and focus on the leadership mindsets and behaviours. Recruitment process has been strengthened to ensure higher competence levels.

There were approx 125 permanent employees on the rol-of the Company and its subsidiaries as on March 31, 2023.

The Company aims to create a thriving, safe and inclusive workplace for its employees and providing merit based opportunities for professiona-development and growth while providing equa-opportunity for employment across gender or ethnic background.

K. CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be ‘forward-looking within the meaning of applicable laws and regulations. Actua-results may differ from those expressed or implied. Important factors that could make a difference to the Companys operations include globa-economy, politica-stability, stock performance on stock markets, changes in government regulations, tax regimes, economic developments and other incidenta-factors. Except as required by law, the Company does not undertake to update any forward-looking statements to reflect future events or circumstances. Investors are advised to exercise due care and caution while interpreting these statements.

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  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
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