RATING

RECOMMENDATION

Neutral

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RATING

RECOMMENDATION

Neutral

Business Type

Near Leader

RATING

RECOMMENDATION

Neutral

Business Type

Near Leader

  • ESDS Growth

Get detailed information about the ESDS Share Price. In this research report, you will get to know about ESDS Pre IPO data. In addition, get the Complete details about the Net Profit Growth, Revenue Growth and Book Value Growth.

ESDS Revenue Growth

Growth in %

  • 8.45%

    1 Year

  • 12.51%

    2 Year

  • 19.53%

    3 Year

The revenues from Cloud hosting and managed services grew from Rs.142 cr. in FY20 to Rs.162 cr. in FY21, showcasing a growth of 14% year on year (y-o-y). The increase in growth is primarily attributable to the addition of 406 new clients in FY21, scaling of old contracts, and launching of managed services in FY21. Along with that, the revenues from Technical support and services grew from Rs.10 cr. in FY21 to Rs.9 cr. in FY20, driven by the increased demand for managed services technical support. But all of this was offset by no sales in cloud hosting-related products, which was Rs. 7 cr. in FY20.

ESDS Net Profit Growth(PAT)

Growth in %

  • 486.63%

    1 Year

  • -36.98%

    2 Year

  • -17.88%

    3 Year

  • The PAT for FY21 was Rs.5 cr. in FY21 compared to Rs.7 cr. in FY20, showcasing an increase of 659% year on year (y-o-y). The firm's revenue per-unit expense for FY21 stands at 1.031, which is higher than FY20, which was 1.004.
  • The operating and other expenditures saw a fall of 9% reason being a significant decline in the cost of project service and rental fees of 55% and 59%, respectively. Also, the company didn't incur any charge for the purchase of products as they didn't execute any order to sell cloud hosting products.
  • The significant rise is also due to low profits in FY20 as the employee benefits & advertisements expense and depreciation & amortization expenses rose momentously in that period due to covid -19. The increase in number of employees and D&E expense was due to expansion of existing data centers and additions in manpower in the some of the certain business departments.

ESDS EPS Growth

Growth in %

  • 2475.00%

    1 Year

  • -35.68%

    2 Year

  • -16.84%

    3 Year

The EPS has grown from Rs. 0.4 per share in FY20 to Rs. 10.30 per share in FY21 showing a 25 times growth from the previous year. The number of shares for the company remains the same in FY21. The net income of the company grew from Rs. 1 cr. in FY20 to Rs. 5 cr. in FY21, this is the growth driver for such a significant increase in EPS of the company

  • ESDS Book Value Growth

Growth in %

  • 32.89%

    1 Year

  • 43.19%

    2 Year

  • 76.35%

    3 Year

The company's book value has increased by 33%, primarily because of increased reserves and surplus by 11% in FY21 compared to FY20. Also, the company issued Rs. 30 cr. compulsory convertible preference shares of Rs. 100 each in FY21, which led to a rise in other equity. The book value is calculated  on a face value of Rs. 10 per share

ESDS EBITDA Growth

Growth in %

  • 23.36%

    1 Year

  • 16.33%

    2 Year

  • 24.62%

    3 Year

The EBITDA for FY21 stands at Rs. 64 cr. to Rs. 52 cr. showcasing a growth of 23%. The reason to drive this growth is the increase in operating revenue by 8% In FY21 compared to FY20, the Increase in sales of (a) cloud hosting and managed services were driven by new contracts and scaling of old contracts and (b) technical support services were driven by an increase in demand of managed services. The operating expenses, as well as product expenses, have seen a decline in FY21 due to no revenue from the sale of cloud hosting products as the company didn't execute any contract for it. Apart from that, the company has opened 1 new data centre in Bengaluru which made the total number of data centres count for the company to 3.

ESDS Operating Profit Growth

Growth in %

  • 78.55%

    1 Year

  • -5.92%

    2 Year

  • 10.70%

    3 Year

The EBIT rose to Rs. 26 cr. in FY21 from Rs.15 cr. in FY20, showcasing an increase of 79%. An increase in operating margin is due a overall increase in the EBITDA of the company whihc rose by 23% y-o-y also the depreciation and amortization expenseof the company has increased a bit from Rs. 36.9 cr. in FY20 to Rs. 37.3 cr. in F21, which is an increase of merely 1% year on year. This is also because the company has disposed of total assets worth Rs.14 cr. and added new assets worth Rs. 60 cr.

ESDS Asset Growth

Growth in %

  • 11.87%

    1 Year

  • 27.17%

    2 Year

  • 47.23%

    3 Year

Total assets have increased from Rs. 412 cr. to Rs. 460 cr. This is primarily due to increased total receivables, cash, and other short-term investments from Rs. 61 cr. in FY20 to Rs. 79 cr. in FY21  and Rs.65 cr. in FY20 to Rs.15 cr. in FY21, respectively. Also, the plant and machinery account, including the right use assets and long-term investment, say a rise of Rs. 20 cr. and Rs. 4 cr. respectively in FY21.

ESDS Cash Flow from Operations

Growth in %

  • -7.55%

    1 Year

  • 37.28%

    2 Year

  • 55.63%

    3 Year

Cash flow from operations showed a fall. It was Rs. 53 cr. in FY20 and fell to Rs. 49 cr. in FY21. The fall primarily accounts for the addition in other current assets by Rs. 18 cr., as well as a decrease in trade payable by Rs. 8 cr..

  • ESDS Solvency Ratios

ESDS D/E Ratio

The overall D/E ratio of the company has seen a fall of 2% as the long-term borrowing of the company has shown an increase of Rs 17 Cr in FY21, and the short borrowing has shown an increase from Rs 32 Cr in FY20 to Rs 72 Cr IN FY21. The reason for the fall in the D/E ratio even when the overall debt has increased by Rs 58 Cr is that the rise in other equity if the company as the company has issued preference shares worth Rs 30 Cr as well as retained earnings by Rs. 6 cr. in FY21 which increased the overall total equity by 24% y-o-y, which led to a fall in D/E ratio of the company.


ESDS Current Ratio

The company's current ratio has decreased from 0.9 to 0.7, a fall of 13% in FY21 over FY20. The change in cash & other short-term investments from Rs .7 Cr in FY20 to Rs 15 Cr in FY21 is because the company's bank balance was increased to Rs 14 Cr in FY21 from Rs .5 Cr and an increase in total receivables by Rs 18 Cr in FY21 when compared to FY20 was as the current maturity of long term borrowing saw a rise of Rs 40 Cr this led to a decrease in the current ratio for FY21

ESDS Quick Ratio

ESDS Interest Coverage Ratio

The company's interest coverage ratio has increased by 15% from last year due to an increase in the EBIT of the company by 79% year on year due to the rise in revenue due to the addition of managed services in the company's portfolio as well as a decrease in the other operating expense by 9% and an only 1% rise in depreciation and amortization in FY21. But the interest expense has also increased from Rs 11 Cr in FY20 to Rs 18 Cr in FY21 due to an increase in the long-term borrowing of the company, but the increased EBIT led to an increase in the interest coverage ratio

  • ESDS Operating Efficiency

  • The company's operating efficiency has shown a significant increase in FY21 when compared to FY20 reason being EBIT and PBT as both have seen a rise of 79% and 152% in FY21 year on year (y-o-y). The reason to drive this growth is 11% revenue growth in FY21 due to an increased client base with 406 clients in FY21.
  • Also, the company didn't incur any raw material costs in FY21 because no revenue from its cloud hosting products was generated. Also, the overall operating expense, employee benefit expenses, and other operating expenses were Rs 110 Cr in FY21 compared to Rs 109 Cr in FY20. The same was with depreciation cost, which saw a rise of 1% in FY21 compared to FY20. 

ESDS Operating Profit EBIT Margin(OPM)


ESDS Profit Before Tax Margin (PBT Margin)

ESDS Profit After Tax Margin (PAT Margin)

  • ESDS Profitablity Ratio

The ability of a business to create money (profit) in relation to sales, balance sheet assets, operating costs, and shareholders' equity over a given time period is measured and evaluated by analysts and investors using profitability ratios. They demonstrate how well a business uses its resources to generate profit and shareholder value.

ESDS Return on Equity(RoE)

ROE of the company in FY21 has witnessed a growth of 471% in FY21 from FY20. As per Dupont Analysis, the net income margin drove an overall increase in the ROE. Net income margin has witnessed a growth of 600% in FY21 from FY20, the reason being the increase in revenue due to an addition of managed services in the company's portfolio as well as an addition of 406 new clients.  Overall, the asset turnover ratio has seen a decline of 13% in FY21 from FY20, as the company has increased its assets which shows that the company is focused on its growth.

ESDS Return on Capital Employed(RoCE)

ESDS Return to Assets (RoA)

ROA of ESDS solutions has seen a 506% rise y-o-y. The reason for this rise is the CAPEX investment by the company is 2021, which the company has done by launching its data center in Bengaluru, side by side company has also seen a 2213% and 28% rise in both cash & short-term investments and total receivables respectively. The company's net income has seen an increase of 659% in FY21 compared to FY20.

  • ESDS Valuation Ratios

ESDS Earning Yield