Systango Technologies Ltd Management Discussions

Management Discussion and Analysis Report

The management discussion and analysis present the industry overview, opportunities and threats, initiatives by the Company, and overall strategy for becoming a market-driven Service Provider with a range of offerings. The company is very optimistic about capturing a substantial share of the global and domestic market in the midst of the threats faced due to the liberalization and increased competition from well-established companies from India and abroad.

OUTLOOK:

Systango is a technology powerhouse geared to add value to digital ecosystems via agile solutions and reliable on-time deployments. With the capacity to manage large-scale projects, we also pride ourselves on maintaining a boutique firms loyalty and personalized attention. With over 15 years of experience, we have evolved into a tech-sawy organization dedicated to addressing our clients unique needs and challenges.

Today, Systango is a publicly traded digital engineering services company. We provide software solutions that enable companies to design, implement, and manage their own "Customized Digital Platforms" including Web2, Web3, and Mobile applications, with strong emphasis on data and analytics.

Our team of 300+ employees collectively holds expertise in services like Website development, Mobile app development, Web3 development, Al Development Data engineering, implementation of Blockchain, and Cloud computing. We have served companies across sectors such as Financial Services (FinTech), Hospitality, Fantasy Sports, PropertyTech, Transportation & Logistics & many more.

We believe in building Tomorrows innovations today.

INDUSTRY INSIDES AND OPPORTUNITIES:

The Indian IT staffing industry has grown significantly over the years and has become a major contributor to the countrys economy. With the advent of new technologies and changing work trends, the industry is constantly evolving, and its important to stay ahead of the curve.

The IT industry accounts for about 8% of Indias GDP and has a share of more than 52% global outsourcing market.

• Due to the large-scale workforce availability, cheap labor, and English language skills, Indias IT services are popular around the world.

• The USA, the UK, and Japan are the largest Importers of Indian services.

• The computer software and hardware services sector of India is among the largest recipients of FDl with a share of about 25% in 2021- 22 (Indias 2021-22 total FDl was US$ 83.57 billion).

• For the software services and the IT sector of India, the USA, the UK, and the EU are the top importers accounting for about 62%, 17%, and 11% of the total IT-ITeS exports, respectively.

Indias IT and business services market is projected to reach US $ 19.93 billion by 2025. According to Gartner estimates, IT spending in India was forecasted to be US$ 81,89 billion in 2021 and further increase to US$ 101.8 billion in 2022.

Indian IT firms have delivery centers all across the world. IT & BPM industry is well diversified across verticals such as BFSI, telecom & retail. Increasing strategic alliance between domestic and international players to deliver solutions across the globe.

In FY21, India ranked third worldwide with 608,000 cloud experts across all verticals, including technology. The computer software and hardware sector in India attracted cumulative foreign direct investment (FDl) inflows worth US$ 88.94 billion between April 2000 and June 2022.

In the Union Budget 2022-23, the allocation for IT and telecom sector stood at Rs. 88,567.57 crore (US$ 11.58 billion). The government introduced the STP Scheme, which is a 100% export-oriented scheme for the development and export of computer software, including the export of professional services.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Standalone Performance: During the year under review your company reported a good rise in revenue from operations amounting to an amount of INR 4,838.95 Lakhs as compared to an amount of INR 3,107.30 Lakhs earned in the previous Financial Year. The Company has marked a growth of 60% in its turnover during the FY 2022-23

The Company has recorded a Gross Profit(PBT) of INR 1,530.62 lakhs as compared to INR 812.37 lakhs earned in the previous financial year and Profit after tax(PAT) of INR 1283.40 Lakhs as compared to a profit of INR 679.70 Lakhs earned during the previous financial year.

The EPS for the FY 2022-23 is reported to be INR 11.71 as compared to INR 6.29 in FY 2021-22, showing a growth of 65.05%.

Consolidated Performance: During the year under review your company reported a good rise in revenue from operations amounting to an amount of INR 5,234.01 Lakhs as compared to an amount of INR 3,268.80 Lakhs earned in the previous Financial Year. The Company has marked a growth of 61% in its turnover during the FY 2022-23

The Company has recorded a Gross Profit(PBT) of INR 1,667.73 lakhs as compared to INR 817.74 lakhs earned in the previous financial year and Profit after tax(PAT) of INR 1399.19 Lakhs as compared to a profit of INR 683.98 Lakhs earned during the previous financial year.

The EPS for the F.Y. 2022-23 is reported to be INR 12.76 as compared to INR 6.33 in FY 2021-22, showing a growth of 66.84%.

The Financial performance of the Company for the Financial Year 2022-23 is described in detail in the Directors^ Report under the head financial summary/performance of the company.

FINANCIAL RATIOS

S.No.	Particulars	As of 31st March 2023	As of 31st March 2022	% of changes compared to preceding year	Remarks (Mandatory if Variation>25%
1	Debt Equity Ratio	6,129.5	1,737.4	-	NA
2	Current Ratio	8.93	4.58	94.97	Due to substantial increase in current assets
3	Trade Receivable Turnover Ratio	21.07	361.54	(94.17)	Due to an increase in Revenue from Operations during the year, in comparison to the preceding financial year, and an increase in Trade receivables during the year.
4	Net Capital Turnover Ratio	0.93	2.02	(53.89)	Due to an increase in turnover during the year and an increase in cash and cash equivalents
5	Net Profit Ratio	26.52	21.87	21.25	NA

RISK AND CONCERNS:

This section contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

We manage regulatory compliance by monitoring and evaluating our internal controls and ensuring that we are in compliance with all relevant statutory and regulatory requirements. There can be no assurance that deficiencies in our filings will not arise in the future, or that we will be able to implement, or continue to maintain, adequate measures to rectify or mitigate any deficiencies in our internal control.

The Company implemented suitable controls to ensure its operational, compliance, and reporting objectives. The Company has adequate policies and procedures in place for its current size as well as its future growing needs. These policies and procedures play a pivotal role in the deployment of the internal controls. They are regularly reviewed to ensure both relevance and comprehensiveness and compliance is ingrained into the management review process

HUMAN RESOURCES / INDUSTRIAL RELATIONS

We have maintained very cordial Industrial relations throughout the year. Measures for the welfare of employees, Training & Development were given great importance by the management.

Human capital is viewed as a valuable resource and an integral part of the Companys success and your Company strongly believes that its employees are the key pillar of your Companys success. The Company recognizes that its employees are its principal assets and that its continued growth is dependent upon the ability to attract and retain quality people. The experienced and talented employee pool plays a key role in enhancing business efficiency, devising strategies, setting up systems and evolving business. We invest in training human resources that we hire to perform the services we provide. These professionals are often targeted by the lateral recruitment efforts of our competitors. The performance of our Company will benefit from the continued service of these persons or the replacement of equally competent persons from the domestic or global markets.

FUTURE PROSPECTS OF COMPANY:

Looking forward, Systango will continue to seek out new and improved ways of efficiently delivering the services that our clientele needs. We have formulated a sound corporate vision and long-term management plan while ensuring that we have constantly evolving management and business structures to respond quickly to the market needs & globalization. We strive to create new avenues for adding more value for the "stakeholders" being investors, business partners, employees, consumers, and communities as well.

DISCLOSURE OF ACCOUNTING TREATMENT:

The Company has followed all the treatments in the Financial Statements as per the prescribed Accounting Standards.

CAUTIONARY STATEMENT

This management discussion and analysis contain forward-looking statements that reflect your Companys current views with respect to future events and financial performance. The actual results may differ materially from those anticipated in the forward-looking statements as a result of many factors. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements and not to regard such statements to be a guarantee of our future performance.

For and on behalf of the Board of Directors of Systango Technologies Limited

Place: Indore	Vinita Rathi	Nilesh Rathi
Date: 06th September, 2023	Managing Director	Executive Director and
	DIN: 00427239	Chief Financial Officer
		DIN: 00430725