Any current/future new fundraising through debt or equity?

The company has recently gone public via an IPO and has started utilizing the IPO proceeds for working capital, infrastructure upgrades, hiring key staff, digital marketing, and participation in events. There is no explicit mention in the transcript of any current or planned new fundraising through debt or equity. The management emphasizes strategic use of IPO funds for growth and building a sales engine but indicates it is early in their journey post-IPO. They are cautiously optimistic about growth and building sustainable long-term performance but have not disclosed any immediate plans for a

Any current/future capex/capital investment/strategic investment?

Fidel Softech has started utilizing IPO proceeds for capital investments including infrastructure upgrades such as purchasing PCs and servers. The company has hired sales and marketing personnel as part of expanding capabilities and market reach. Investments are being made in digital marketing, participation in domestic and international events (e.g., LocWorld, tech events in Bangalore), and developing partnerships. Strategic investments include strengthening the advisory board with senior members for finance and branding. Focus is on building a sales engine and investing in key domains to sca

Future growth expectations in sales/revenue/volumes?

The company aims for sustainable, long-term growth over the next 5 to 10 years rather than focusing solely on quarterly numbers. They have a current order book of around ₹12 crore spread over the next six months, which is likely to increase with new orders. Efforts are underway to build a stronger sales engine, invest in advisory and resources, and participate in industry events to boost growth. The company is cautiously optimistic about robust growth opportunities, expecting to continue mining new clients aggressively. They are targeting growth through expanding multilingual data enri

Future growth expectations in earnings/operating earnings/profits/EPS?

Fidel Softech is focused on sustainable long-term growth over the next 5 to 10 years rather than just chasing quarterly numbers (Sunil Kulkarni, Page 14). The company targets maintaining +25% EBITDA margin sustainably, backed by abundant business opportunities and current order book (Mandar Inamdar, Page 11). Revenue growth is expected, supported by a current order book of around ₹12 crores for the next 6 months and ongoing sales team efforts to secure new orders (Page 8, 12, 13). Positive outlook despite external recession concerns, with ongoing investments in digital marketing, infrastructur

Current/ Expected Orderbook/ Pending Orders?

Current order book stands at approximately ₹12 crores, with visibility and assurance to execute within the next six months (H2 FY 2023). The ₹12 crore order book is spread over the next two quarters (H2) and reflects confirmed and conservative estimates. New orders beyond this ₹12 crore are expected to come in, as the sales team continues to pursue additional business. The company takes a conservative view on bookings due to market volatility despite no immediate signs of customer slowdown. The order book of ₹12 crores is lower than the revenue of the first half (₹15 crores), indicating room f

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Fidel Softech LtdQ3 FY23IT - Software

Fidel Softech Ltd Q3 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹151P/E: 16.9Market Cap: ₹243 CrSector: IT - Software

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→The company aims for sustainable, long-term growth over the next 5 to 10 years rather than focusing solely on quarterly numbers.
→They have a current order book of around ₹12 crore spread over the next six months, which is likely to increase with new orders.
→Efforts are underway to build a stronger sales engine, invest in advisory and resources, and participate in industry events to boost growth.
→The company is cautiously optimistic about robust growth opportunities, expecting to continue mining new clients aggressively.
→They are targeting growth through expanding multilingual data enrichment and SaaS enterprise applications markets.
→Expansion into the US market with channel partners and local hires is planned alongside existing focus on Japan and other regions.
→With IPO proceeds, they plan investments in infrastructure, hiring, digital marketing, and tool development to support scale-up.
→The goal is to chase growth sustainably while building trust and maintaining performance consistency.

Margin guidance

Category 3

→Fidel Softech is focused on sustainable long-term growth over the next 5 to 10 years rather than just chasing quarterly numbers (Sunil Kulkarni, Page 14).
→The company targets maintaining +25% EBITDA margin sustainably, backed by abundant business opportunities and current order book (Mandar Inamdar, Page 11).
→Revenue growth is expected, supported by a current order book of around ₹12 crores for the next 6 months and ongoing sales team efforts to secure new orders (Page 8, 12, 13).
→Positive outlook despite external recession concerns, with ongoing investments in digital marketing, infrastructure, hiring, and participation in strategic events to boost growth (Sunil Kulkarni, Pages 5-6).
→The company reported strong quarter-on-quarter and year-on-year growth with revenue rising ~34.6%, EBITDA and PAT more than doubling year-on-year (Mandar Inamdar, Page 3).
→Emphasis on building trust and improved communication with investors as they continue to grow (Sunil Kulkarni, Page 14).

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Fundraise plans

Yes

→The company has recently gone public via an IPO and has started utilizing the IPO proceeds for working capital, infrastructure upgrades, hiring key staff, digital marketing, and participation in events.
→There is no explicit mention in the transcript of any current or planned new fundraising through debt or equity.
→The management emphasizes strategic use of IPO funds for growth and building a sales engine but indicates it is early in their journey post-IPO.
→They are cautiously optimistic about growth and building sustainable long-term performance but have not disclosed any immediate plans for additional fundraising.
→Future funding needs, if any, have not been specified during this conference call.

Order book

Yes

→Current order book stands at approximately ₹12 crores, with visibility and assurance to execute within the next six months (H2 FY 2023).
→The ₹12 crore order book is spread over the next two quarters (H2) and reflects confirmed and conservative estimates.
→New orders beyond this ₹12 crore are expected to come in, as the sales team continues to pursue additional business.
→The company takes a conservative view on bookings due to market volatility despite no immediate signs of customer slowdown.
→The order book of ₹12 crores is lower than the revenue of the first half (₹15 crores), indicating room for order book expansion.
→Projects in the order book include recurring engagements and ongoing managed service contracts (MSS).
→The company is actively working to build and grow the order book as part of its strategic growth initiatives.

Capex plans

Yes

→Fidel Softech has started utilizing IPO proceeds for capital investments including infrastructure upgrades such as purchasing PCs and servers.
→The company has hired sales and marketing personnel as part of expanding capabilities and market reach.
→Investments are being made in digital marketing, participation in domestic and international events (e.g., LocWorld, tech events in Bangalore), and developing partnerships.
→Strategic investments include strengthening the advisory board with senior members for finance and branding.
→Focus is on building a sales engine and investing in key domains to scale supply capability.
→Efforts are underway to develop talent, reskill existing staff, and create tools for semi-automation in multilingual data enrichment.
→The company is positioning to compete for bigger global RFPs by achieving certifications like ISO 17001.
→Exploring strategic partnerships and channel partners in the US market to expand business footprint.

How does Fidel Softech Ltd rank vs peers in IT - Software?

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1Fidel Softech Ltd

Rev 3Mar 3

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