Any current/future new fundraising through debt or equity?

No plans for further equity dilution at present; company is not looking for additional equity fundraising. The company aims to become debt-free by repaying promoter loans (Rs. 45 crores) over next 3 to 4 quarters; total gross debt approx. Rs. 100 crores currently. Debt focus is on repaying non-working capital loans; will maintain only working capital debt (~Rs. 50-55 crores). IPO funds raised (~$13 million) have been mainly deployed towards acquisition (Devcool), IPO expenses, and working capital. Banking support and research coverage are being sought to aid next level growth but no me

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

The company has made a strategic acquisition of Devcool Inc. for $4.5 million, expanding its healthcare IT services and cloud opportunities. Investments have been made in sales and marketing personnel (around 12 in HCTI and additional in Blockchain and SecureKloud) to drive growth. Significant investments continue in R&D platforms to enhance offerings like CloudEz, DataEz, Readable.ai, and Blockedge. R&D expenses peaked in the recent quarter and are expected to decrease in percentage and absolute terms over the next two quarters. The company is exploring OEM partnerships (e.g., with Meditech)

Future growth expectations in sales/revenue/volumes?

Guidance for FY23 expects revenue growth of 25-30% year-on-year with acceleration post-COVID due to resumed client interactions and conferences. Long-term view targets revenue doubling every 2 years over next 10-15 years, though acknowledging recent challenges. Goal to reach approximately Rs. 1300 crores revenue by FY25, with HCTI contributing Rs. 700-750 crores and other businesses adding 35-40%. Emphasis on increasing recurring revenue to 60% through SaaS and platform deals, which support better margins and scalability. Multi-year SaaS deals like Readable.ai (over $1 million recurrin

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

Revenue growth guidance for FY23 is expected between 25% to 30%, reflecting acceleration post-COVID recovery and increased client engagements (Page 13). Goal to reach Rs. 1300 crores revenue by FY25 with healthcare IT (HCTI) contributing Rs. 700-750 crores and remaining business adding 35-40% (Page 10). Recurring revenues targeted to increase to 60% of total revenues within the next 5-6 quarters, supporting margin expansion (Page 3). Gross margins currently around 26.5-27%; aiming to improve to about 40% in next six quarters through platform and SaaS revenue growth (Pages 11 and 11). Bottom-li

Current/ Expected Orderbook/ Pending Orders?

SecureKloud is currently engaged in several proposals, especially in Dubai and the Middle East through its partnership with Cognicx, expecting closures in the next 2 to 3 quarters. The company has a healthy pipeline, particularly for its platform offerings, with expectations of substantial revenue growth in FY23. Multiple long-term multi-year deals are in place, such as Readable.ai contracts ranging from 3 to 5 years and deal sizes between $1 million to $2 million, fully recurring over the contract period. Ongoing engagements with large pharma customers include cloud hosting and disaster recov

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SecureKloud Technologies LtdQ4 FY23IT - Services

SecureKloud Technologies Ltd Q4 FY23 Earnings Call Analysis

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

Price: ₹19.1Market Cap: ₹77 CrSector: IT - Services

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 2

→Guidance for FY23 expects revenue growth of 25-30% year-on-year with acceleration post-COVID due to resumed client interactions and conferences.
→Long-term view targets revenue doubling every 2 years over next 10-15 years, though acknowledging recent challenges.
→Goal to reach approximately Rs. 1300 crores revenue by FY25, with HCTI contributing Rs. 700-750 crores and other businesses adding 35-40%.
→Emphasis on increasing recurring revenue to 60% through SaaS and platform deals, which support better margins and scalability.
→Multi-year SaaS deals like Readable.ai (over $1 million recurring) enhance revenue visibility and growth potential.
→Investment in expanded sales teams aimed at acquiring new clients and transitioning existing ones for growth.
→Recovery and growth driven by strong pipeline, larger deal flow in healthcare and pharma IT services, and cloud/data opportunities post-COVID.

Margin guidance

Category 3

→Revenue growth guidance for FY23 is expected between 25% to 30%, reflecting acceleration post-COVID recovery and increased client engagements (Page 13).
→Goal to reach Rs. 1300 crores revenue by FY25 with healthcare IT (HCTI) contributing Rs. 700-750 crores and remaining business adding 35-40% (Page 10).
→Recurring revenues targeted to increase to 60% of total revenues within the next 5-6 quarters, supporting margin expansion (Page 3).
→Gross margins currently around 26.5-27%; aiming to improve to about 40% in next six quarters through platform and SaaS revenue growth (Pages 11 and 11).
→Bottom-line profitability focus alongside topline growth due to SaaS model with minimal incremental cost improving operating profits over time (Pages 11 and 13).
→Debt reduction planned to complete within 3-4 quarters, easing interest costs and improving operational cash flows (Page 10).

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Fundraise plans

→No plans for further equity dilution at present; company is not looking for additional equity fundraising.
→The company aims to become debt-free by repaying promoter loans (Rs. 45 crores) over next 3 to 4 quarters; total gross debt approx. Rs. 100 crores currently.
→Debt focus is on repaying non-working capital loans; will maintain only working capital debt (~Rs. 50-55 crores).
→IPO funds raised (~$13 million) have been mainly deployed towards acquisition (Devcool), IPO expenses, and working capital.
→Banking support and research coverage are being sought to aid next level growth but no mention of fresh debt fundraise.
→Goal is to generate sufficient operating cash flow by growing recurring revenues and improving margins to reduce debt organically.

Order book

→SecureKloud is currently engaged in several proposals, especially in Dubai and the Middle East through its partnership with Cognicx, expecting closures in the next 2 to 3 quarters.
→The company has a healthy pipeline, particularly for its platform offerings, with expectations of substantial revenue growth in FY23.
→Multiple long-term multi-year deals are in place, such as Readable.ai contracts ranging from 3 to 5 years and deal sizes between $1 million to $2 million, fully recurring over the contract period.
→Ongoing engagements with large pharma customers include cloud hosting and disaster recovery services, with 60-70% of topline coming from managed services and platform opportunities.
→Despite macro challenges and delayed B2B deal closures, the company views its sales investments and pipeline positively, aiming for 25-30% sequential revenue growth year-on-year.
→The increase in sales force and live participation in healthcare conferences is expected to accelerate new order acquisitions going forward.

Capex plans

Yes

→The company has made a strategic acquisition of Devcool Inc. for $4.5 million, expanding its healthcare IT services and cloud opportunities.
→Investments have been made in sales and marketing personnel (around 12 in HCTI and additional in Blockchain and SecureKloud) to drive growth.
→Significant investments continue in R&D platforms to enhance offerings like CloudEz, DataEz, Readable.ai, and Blockedge.
→R&D expenses peaked in the recent quarter and are expected to decrease in percentage and absolute terms over the next two quarters.
→The company is exploring OEM partnerships (e.g., with Meditech) to scale Readable.ai, indicating future strategic investment in platform expansion.
→No explicit mention of large new capital expenditures, but emphasis on leveraging existing platform investments for scalability.
→Working capital investments increased by about Rs. 20 crores, funded partially by IPO proceeds and repayments of debt are underway.

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