CyberTech Systems and Software Ltd. (BSE: CYBERTECH), a CMMi Level 3 Next Gen Location Analytics organization announced today its financial results for the second quarter and half year FY19 ended on 30th September, 2018.
Commenting on the results, Mr. Vish Tadimety, CEO and Founder, CyberTech, stated: "The quarter gone by was inline with our expectations. We witnessed a significant increase in both revenue (growth of 10.1%) and EBITDA margin on a QoQ basis in absolute dollar term. We continue to see strong growth in our US business which constitutes 93% of revenue and grew by 6% over the prior quarter primarily led by orders from both new and existing clients.
We are pleased to share with you that we recently were awarded our first contract for S/4 HANA implementation from a large chemical company. Additionally, our product portfolio continues to be promoted through our Channel Partners including SAP, Esri and Cisco. We have received our second GeoShield deal through the Cisco Kinetic channel. This will be recognized in the third quarter.
We continue to pay attention to strict cost control. Due to our cost controls, revenue increases tend to largely fall to the bottom line. This will amplify as we complete lower margin activities that are labor intensive related to GeoCivic.
Our new US-based subsidiary, Spatialitics LLC, which was formed to focus on our spatial analytics based fabric and product portfolio, is growing inline with our strategy. During the past quarter, we launched the World's first HIPAA Compliant Geocoding services platform - powered by Esri. Our SAP and ArcGIS Synchronization Framework will be releasing its first version during next quarter. Both these solutions were developed based on our unique and proprietary Spatialitics spatial analytics platform and should have a transformational impact on performing spatial analytics for HealthCare and Utility customers. We will continue to invest in our engineering developments under the Spatialitics brand.
Since last year, we have paused taking any new engagements for our GeoCivic product line and are in the process of wrapping up our current ongoing projects. Further GeoCivic sales will come from a sales channel. GeoCivic successfully went live during the quarter for the Municipal Corporation of Patiala. We will continue to focus on completing our existing GeoCivic accounts by end of this year. As mentioned earlier, GeoCivic continues to be a powerful product for helping municipalities manage property taxes and we are intending to relaunch GeoCivic through Channel partners in the upcoming year.
We intend to maintain steady growth going forward, driven by our next-gen products and solutions offerings, and subscription sales. We remain committed to helping our customers achieve better performance in their respective industries and to deliver enhanced value to all our key shareholders."
Consolidated Q2FY19 Q-o-Q Review
- Operating revenue was Rs 239.7 million during the quarter under review as compared to Rs 217.7 million during the previous quarter, reflecting a growth of 10.1% on a Q-o-Q basis.
- Total revenue was Rs 254.3 million during the quarter under review as compared to Rs 231.7 million during the previous quarter.
- The Company reported an EBITDA of Rs 43.5 million for the quarter under review as compared to Rs 21.4 million during the previous quarter, a growth of 104% on Q-o-Q.
- EBITDA Margin stood at 17.1% for Q2FY19 as compared to 9.2% for Q1FY19.
- Net Profit for the quarter under review showed the leverage from our sales increase and stood at Rs 20.4 million for the quarter as compared to Rs 2.9 million during the previous quarter.
Consolidated H1FY19 Review
- Operating revenue was Rs 457.4 million for the half year ended 30th September, 2018 as compared to Rs 434.0 million in the corresponding period of previous year, reflecting a growth of 5.4% on Y-o-Y basis.
- The Company reported an EBITDA of Rs 64.8 million (13.3%) for H1FY19 as compared to Rs 73.6 million (15.3%) in the corresponding period of previous year.
- Net Profit stood at Rs 23.2 million for H1FY19 as compared to Rs 35.6 million in the corresponding period of previous year.
Shares of CYBERTECH SYSTEMS AND SOFTWARE LTD. was last trading in BSE at Rs.42.65 as compared to the previous close of Rs. 43.7. The total number of shares traded during the day was 23574 in over 206 trades.
The stock hit an intraday high of Rs. 47.5 and intraday low of 42.55. The net turnover during the day was Rs. 1035291.