Content

  1. 1Aricent Technologies Essentials
    1. 1.1 Aricent Technologies ISIN
    2. 1.2 Aricent Technologies Face Value
    3. 1.3 Aricent Technologies Total Share
    4. 1.4 Aricent Technologies Total Income
    5. 1.5 Aricent Technologies Profit After Tax
    6. 1.6 Aricent Technologies Promoter Holding
    7. 1.7 Aricent Technologies EPS
    8. 1.8 Aricent Technologies P/E
    9. 1.9 Aricent Technologies P/B
    10. 2.0 Aricent Technologies Market Capitalisation
    11. 2.1 Aricent Technologies Enterprise Value
    12. 2.2 Aricent Technologies Book Value
    13. 2.3 Aricent Technologies Intrinsic Value
    14. 2.4 Aricent Technologies Earnings Yield
    15. 2.5 Aricent Technologies Dividend Yield
    16. 2.6 Aricent Technologies Sector
    17. 2.7 Aricent Technologies Sub-sector
    18. 2.8 Aricent Technologies Category
    19. 2.9 Aricent Technologies Cashflow - Operations
    20. 3.0 Aricent Technologies Cashflow - Financing
  2. 2Aricent Technologies Growth
    1. 2.1 Aricent Technologies Compounded Sales Growth
    2. 2.2 Aricent Technologies Compounded Profit Growth
    3. 2.3 Aricent Technologies Return On Equity
  3. 3 About Aricent Technologies
  4. 4 Aricent Technologies IPO Details
  5. 5 Aricent Technologies Funding
  6. 6 Aricent Technologies Merger & Acquisition
    1. 6.1 Aricent Technologies Merger
    2. 6.2 Aricent Technologies Acquisition
    3. 6.3 Aricent Technologies Investments
  7. 7 Aricent Technologies Subsidiaries
  8. 8 Aricent Technologies Business Model
  9. 9 Aricent Technologies Revenue Segmentation
  10. 10 Aricent Technologies Product & Services
  11. 11 Aricent Technologies Assets
  12. 12 Aricent Technologies Industry Overview
    1. 12.1 Aricent Technologies Industry Statistics
    2. 12.2 Aricent Technologies Future Prospects
    3. 12.3 Aricent Technologies Government Initiatives
  13. 13 Aricent Technologies Awards & Achievements
  14. 14 Aricent Technologies SWOT
    1. 14.1 Aricent Technologies Strengths
    2. 14.2 Aricent Technologies Shortcomings
    3. 14.3 Aricent Technologies Opportunities
    4. 14.4 Aricent Technologies Government Threats
  15. 15 Aricent Technologies Rating
  16. 16 Aricent Technologies Detail Info

Aricent Technologies Essentials

Discover and get a complete analysis on Aricent Technologies Pre IPO - Aricent Management Business Model, Financials, Growth, Valuations, Funding Rounds, News and get latest updates on Aricent Financial Statements.

ISIN

INE272I01010

Face Value

₹10.00

Total Share

13,11,96,104

Total Income

₹2,610.00 Cr

Profit After Tax

₹196.00 Cr

EPS

₹15.00

P/E

48.00

P/B

3.70

Market Capitalisation

₹9,446.12 Cr

Enterprise Value

₹8,584.12 Cr

Book Value

₹194.54

Intrinsic Value

₹378.95

Earnings Yield

2.08 %

Sector

Technology

Sub-sector

IT Services & Consulting

Category

Small Cap

Cashflow - Operations

₹956.50 Cr

Cashflow - Financing

-₹105.20 Cr

Aricent Technologies Growth

Compounded Sales Growth

  • 3.24%

    1 Year

  • 1.95%

    3 Year

  • 1.85%

    5 Year

Pro Only

Compounded Profit Growth

  • -72.11%

    1 Year

  • -0.56%

    3 Year

  • 0.78%

    5 Year

Pro Only

Return On Equity

  • 7.68%

    2021

  • 11.93%

    2019

  • 12.72%

    2017

Pro Only

About Aricent Technologies

  • Aricent Technologies designs and developes communication software for the communications industry. The company offers middleware, consumer and enterprise applications, network management, service provisioning, and billing mediation.
  • The company was a step-down subsidiary of Altran group, a listed entity formed and registered under the laws of France.
  • Capgemini SE acquired Altran Technologies SAS in 2020 which was the parent company of Aricent Technologies since 2018. The Capgemini India group holds 98.25% stake in Aricent Technologies holding Limited as of March 2021.
  • The company was founded in 1991 and heads its operations from its office in Gurugram, Harayana in India.

  • Aricent Technologies IPO Details

Presently there is no news for Aricent Technologies upcoming IPO.

  • Aricent Technologies Merger & Acquisition

Acquisition

  • On 10th June 2022, Capgemini Technology Services India Limited has proposed to their shareholder that they will be acquiring their subsidiary Aricent Technologies (Holding) Limited by taking over the remaining public shares available. The voting for the same will take place from 28th June 2022 till 29 July 2022. In the proposal, the company has accounted that they will be giving 1 share of  Capgemini Technology Services India Limited for 17 shares of Aricent Technologies (Holding) Limited.
  • On 8 April 2020, Capgemini completed the acquisition of Altran(the ultimate holding company of Aricent Technologies) and acquired 110,571,163 shares for $4.1 billion. Capgemini will hold 98.15% of Altran’s share capital and at least 98.03% of Altran’s voting rights upon settlement. This acquisition offered Capgemini a lead position with a whole stack of capabilities across research and development (R&D) strategy, digital design, product engineering, manufacturing services, software development, and integration.
  • In March 2011, Ambience Limited and Domestic Fund 4, a fund of Indiareit Fund Advisors Pvt. Ltd(Piramal Fund Management Pvt.) paid INR 2.1 billion to Aricent Technologies (Holdings) Limited for a 17.63-acre land on the Old Gurgaon Highway. Jones Lang LaSalle India represented Aricent Technologies.
  • Aricent Technologies Subsidiaries

  • The company has no subsidiaries as of 31st, March 2021.

Aricent Technologies Business Model

  • Aricent Technologies designs and develops communication software for the communications industry. The company offers middleware, consumer and enterprise applications, network management, service provisioning, and billing mediation.
  • Aricent Technologies Revenue Segmentation

  • Product License Contract
  • Other income
  • Fixed Price Contract
  • Time and Material Contract
  • Maintenance Contract
  • Aricent Technologies Product & Services

  • The company provides the following services:
 outsourced product developments
 product support services
 licensable software frameworks
  • As well as Aricent’s service offerings provide a comprehensive product lifecycle of services for:
 communications networks
 applications
 mobile services




  • Aricent Technologies Assets

As of 31st December 2021 company's fixed assets are bifurcated as follows:
Tangible Assets (in cr.)
Leasehold Improvments

36.6

Plant and Equipments3.7
Computer Equipments 35.5
Furniture and Fixtures 2.4
Office Equipments 5.7
Vechicles0.1
Capital-in-progress2.6
Right of use assets

169.4

Intangible Assets (in cr.)
Goodwill780.3
Software7.9
Customer relationships31.2

  • Aricent Technologies Industry Overview

Industry Statistics

Introduction: 
  • The IT service market combines the BPO service market, the SAAS service market, and the infrastructure services market.
  • The BPO services market is defined as the revenues from services related to customer relationship management (CRM), finance and accounting, human resources, knowledge process outsourcing, and procurement and supply chain. The SAAS services market is defined as the revenues from services related to application development, application management, and performance monitoring. The infrastructure services market is defined as the revenues from services related to cloud computing, data center & hosting services, IT management, security, and storage.


Market size: 
  • According to Marketline, the Indian IT services industry grew by 9.5% in 2021 to reach a value of $30.1 billion compared to $ 27.5 Billion in 2020. The compound annual growth rate (CAGR) of the industry in the period 2017–21 was 8.8%. The growth is primarily driven by increased adoption of digital IT services along with the increased prevalence of IT infrastructure in the region. The Indian IT industry contributes to around 8% of the country's GDP and is the most significant contributor to total services exports.
  • As per Department for Promotion of Industry and Internal Trade (DPIIT), the sector ranked 2nd in FDI inflows.


Key Trends:
  • The key trends in the market include new advancements for a better future like the Internet of Things, Blockchain, Machine Learning, Artificial Intelligence, Augmented Reality, Data advancement like 5G, and so on. The key players in these advancements in India include Bharti Airtel Ltd, Happiest Minds Technologies Ltd, Larsen & Turbo Infotech Ltd, HCL Technologies Ltd, and Tata Elxsi Ltd
  • These technological advancements have given rise to a pool of opportunities like VR/AR gaming, Metaverse, web3, robotics, web-tech, food-tech, mobile apps, and so on.


Major Players:
  • The four key players in the Indian IT sector are Tata Consultancy Services Ltd, Infosys Ltd, HCL Technologies, and Wipro Ltd. They are blue chip scrips with the industry's most extensive client base and revenue.


Listed Peers: 
  • The listed peers of Aricent Technologies (Holdings) Limited, as per its market capitalization and portfolio sizes, are Sonata software ltd, Birlasoft ltd and Zensar technologies ltd . Aricent technologies specialse in engineering R&D , connectivity & harnessing Data and software services, the closest competitior for ATHL is TCS Ltd and Wipro Ltd

Future Prospects

  • Continued growth in artificial intelligence, big data analytics, and cloud computing. Big data and AI are the keys for future growth. Also internet security and privacy are prioritized nowadays as the world is going digital, leading to increased security concerns like cyber attacks.
  • Rising demand from businesses across all IT segments, with a pronounced acceleration in demand for cloud services, providing considerable monetization opportunity to the company in the future as it is already working in the segment.
  • According to Marketline in 2026, the Indian IT services industry is forecast to have a value of approximately $45.4 billion, an increase of  50.8% since 2021. The compound annual growth rate of the industry in the period 2021–26 is predicted to be 8.5%.  Growth will be driven by increased digitization alongside increased consumer expectations of digital services and infrastructure. Additionally, the continued push towards remote and distance working will further incite demand in the market through increased investment in digital services and infrastructure

Government Initiatives

  • The IT sector is governed by the Ministry of  Electronics and Information Technology (MietY)
  • An executive department of the Union Government of the Republic of India is the Ministry of Electronics and Information Technology (MeitY). On July 19, 2016, it was separated from the Ministry of Communications and Information Technology to become a separate ministerial organization in charge of IT policy, strategy, and the growth of the electronics sector.
  • In July 2015, the Government of India launched a ‘Digital India Programme’, with a vision of propelling the efforts to transform India into a digitally empowered society and knowledge economy. Further, it was envisaged that the digital ecosystem could generate an economic value of USD 1 trillion, which would play a crucial role in achieving the USD 5 trillion economy target by 2025.
  • Government push for data localization requirements will provide domestic data storage providers with a shot.
  • Government and enterprises are showing an appetite for cloud computing services, including Infrastructure-as-a-Service and Software-as-a-Service, which has attracted significant inward investment from global leading vendors, creating a virtuous circle.
  • The government push for developing the Internet of Things industry will create opportunities for networking, software, and services vendors in India over the medium term.

Aricent Technologies Strengths

  • The has been acquired by Capgemini SE, which gives the company the strength to acquire new clients because of the brand value associated with Capgemini Group.
  • The company's free cash flows have been growing at a CAGR of 28.36% over the past five years, which is higher than the industry benchmark.
  • With healthy cash and other short-term investments worth Rs 1,043 Cr, the company is maintaining a solid balance sheet that enables them to concentrate on growth possibilities to increase the Topline and the bottom line.

Aricent Technologies Shortcomings

  • The company EBIT and PBT margins are declining for past 5 years consistently which is a major red flag as the company is struggling to grow while the whole sector is in an upward trajectory.
  • The ROE and ROCE of the company are lower compared to other listed peers. This is basically due to a significant decrease in the net income year to year (y-o-y).

Aricent Technologies Opportunities

  • New specializations are opening up in areas like artificial intelligence(AI), machine learning, blockchain, telemedicine, robotics, etc., in the IT services industry. The company should reposition itself and explore these avenues for its future growth.
  • In the 2021/22 budget, the government earmarked around USD7.3bn for IT and telecoms sector investments.
  • In demand for automation and digitalization in each segment of the economy is an ample opportunity for the IT sector, and it can grow the service and product range. It is forecasted to grow to several $45.4 billion by 2026, which means a lot of scale to growth in just five years.

Aricent Technologies Threats

  • As companies are moving towards new technologies, such as mobile computing, IoT, and cloud computing, they are more prone to sophisticated targeted attacks, ransomware threats, malware, data leakage, and other security failures
  • There’s a significant disruption driven by technology. It is essential for the company to continuously review and upgrade its technology, resources, and processes to mitigate technical obsolescence
  • The company faces tough competition from other well-established names like Tata Consultancy Services, Wipro, Infosys, Cognizant, Tech Mahindra, and Accenture.
  • As being a part of the IT services industry requires highly skilled labour. In India, there is a shortage of such kind of workforce, and the portion of labour that is skilled comes at a higher cost which will increase company operating costs and hamper the company's growth.
Aricent Technologies Rating

  • RECOMMENDATION

    Speculative Investment

  • Aricent Technologies Detail Info

Industry Statistics

PUBLIC LIMITED

Registered In

India

last Updated

09/07/2022

Registered Date

14/06/2006

Planify Ticker

ARI

Reg Office: 5, Jain Mandir Marg (Annexe.), Connaught New Delhi DL 110001 India

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