SUBEXLTD trade ideas
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COMPANY in DETAILS
Products based on Digital trust
Digital Trust is a concept that enables users to carry out business transactions in a safe, secure, ethical and reliable manner. #
Some of the products the co. is offering is Revenue Assurance, Network Analytics, Fraud Management, Identity Analytics, Partner Ecosystem Management, IOT Security, Analytics Center of Trust and Anomaly Detection.#
Becoming Debt Free
In the 1990s to 2000s the company acquired companies using equity and its revenue grew at a compounded annual rate of 33 percent between 2000 and 2007.
However the downfall started with the acquisition of Syndesis as they changed their acquisition strategy from acquiring companies through stocks to using cash of an amount of $165 million, which was largely funded through borrowings. Since then the company has been paying off debt and has become debt free in FY 21. # #
Revenue Split By Service
Managed services : 39% in Q3FY21 vs 40% in Q3FY20
Support Services & Others : 33% in Q3FY21 vs 31% in Q3FY20
Implementation, Customisation, License: 28% in Q3FY21 vs 29% in Q3FY20#
Geographical Split
EMEA: 55% in FY20 vs 59% in FY18
APAC and Rest Countries: 21% in FY20 vs 17% in FY18
Americas: 20% in FY20 vs 16% in FY18
India: 3% in FY20 vs 8% in FY18 # #
Customers are spread across 90 countries. #
Clients
Some of the major Clients include - Airtel, Optus, AT&T, Maxis, Tech Mahindra etc.# Includes 75% of the world’s top 50 telecom companies.
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They have a 98% customer retention.#
Approximately 60% of revenue is annuity/recurring. #
Recently joined O RAN Alliance, to support the development and standardisation of Open RAN (radio access networks).#
Will be working with Skylab to offer IoT and OT cybersecurity solutions and services to the maritime sector. # #
Zero Promoter holding
It's a company with zero promoter holding. #
Research and Development (R&D)
R&D Expenditure as a percentage of revenue: 6.4% in FY20 vs 4 % in FY19 (Spent INR 22.23 Crores in FY20 vs 14.82 Crores in FY19). #
Focus
Horizon 1 (Enhance the core): Business from Tier-I customers who are refreshing outdated technologies.
Horizon 2 (Growth in new areas): Highly dependent on growth of 5g Technology. It includes IoT Security (Multi-vertical product) & Analytics Center of Trust.
Horizon 3 (Invest in Emerging Areas (Multi-Vertical SaaS)): Includes CrunchMetrics, an automated anomaly detection software and IDcentral .# #
It's making inroads in the multi vertical IoT Security space and incubating virtual startups within the organization to diversify into new areas and verticals. #
Subex will be launching a new AI automation platform in the month of April 2021.
