FINANCIAL

SUMMARY
2
RNIT’s Business
The company is an IT solutions
provider that majorly focusses on
Artificial Intelligence, Mobile
Solutions, Internet-of-Things and
Application Development.

Agenda Financial summary

Company’s financial statements
from FY20 to FY28

RNIT Solutions and Services Limited

ISIN:INE0NRF01016
Future snapshot
company’s financial statements
CIN: UT2900TG2019PLC132226
from FY20 to FY28

Business Analysis
This section analyses the
company’s business using SWOT
Analysis

Shareholding Pattern
Company shareholding and future
growth
 FINANCIAL SUMMARY Financial Data In Lakhs

YEAR END 31ST MARCH FY-20 (A) FY-21 (A) FY-22 (A) FY-23 (E) FY-24 (E) FY-25 (E) FY-26 (E) FY-27 (E) FY-28 (E)

Total revenue 140.99 467.92 1,721.64 2,400 3,120 4,056 6,084 9,126 13,689

Revenue Growth N/A 232% 268% 39% 30% 30% 50% 50% 50%

Operating Expenses 128.81 255.56 1,083 1,680 2,028 2,433.60 3,528.70 5,110.56 7,392

% of OE Over Revenue 91.36% 54.62% 62.91% 70% 65% 60% 58% 56% 54%

EBITDA 8.55 79.19 284.74 720 1,092 1,622 2,555 4,015.44 6,296.94

% EBITDA Over Revenue 6% 17% 17% 30% 35% 40% 42% 44% 46%

PBT 5.61 37.21 243.54 638.52 980.89 1,489 2,430.28 3,896.69 6,182.88

% PBT Over Revenue 3.98% 7.95% 14.15% 26.61% 31.44% 36.71% 39.95% 42.70% 45.17%

PAT 3.86 27.41 175.51 472.50 725.86 1,101.91 1,798.41 2,883.55 4,575.33

% PAT Over Revenue 2.74% 5.86% 10.19% 19.69% 23.26% 27.17% 29.56% 31.60% 33.42%

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 FINANCIAL ANALYSIS
➢ The balance sheet size of the company grew from ₹ 275.62 lakhs in FY20
to ₹ 400.76 lakhs in FY22. As per the company’s adjusted financial
statements for FY21, the balance sheet size was ₹ 444.99 lakhs in FY21.

➢ As observed from RNIT’s balance sheet, the trade payables have declined
from ₹98.24 in FY21 lakhs to ₹ 63.81 lakhs in FY22. The trade receivables
have however increased 10-fold from ₹ 11.30 lakhs in FY 21 to ₹ 108.37
lakhs in FY 22. The absolute values have definitely increased but so has
the revenue of the company during the same period.

➢ RNIT managed to grow its sales figures from ₹467.93 lakhs to ₹1,720 lakhs
in FY22. The top-line growth was observed to be at 267%. The strong
growth in sales figures can be attributed to the fact that the company is
just over 3 years old.

➢ EBITDA grew from ₹79.19 lakhs in FY21 to ₹283.10 lakhs in FY22.

➢ Profit after tax grew by 540% from ₹27.41 lakhs in FY21 to ₹175.51 lakhs
in FY22
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 FINANCIAL SNAPSHOT
Financial Data In Lakhs

Revenue
130% 33.66%
CAGR CAGR

1721 13,689

9,126

6,084
4,056
467.9 3,120
140.9 2,400
FY-20 FY-21 FY-22 FY 23 FY 24 FY 25 FY 26 FY 27 FY 28

➢ Mr. Srinivas has estimated that the company’s revenue will grow by about 40% to ₹
2400 lakhs in FY23. Revenue is expected to grow by 30% to ₹ 3120 lakhs in FY24
and to ₹13,689 lakhs in FY28

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 FINANCIAL SNAPSHOT
Financial Data In Lakhs

EBIDTA
221% 43.53%
CAGR CAGR
284.74
6,296

4,015

2,555

79.19 1,622
8.55 1,092
720
FY-20 FY-21 FY-22 FY 23 FY 24 FY 25 FY 26 FY 27 FY 28

➢ EBITDA grew from ₹79.19 lakhs in FY21 to ₹283.10 lakhs in FY22.EBITDA is

expected to grow ₹6,296 Lakhs in FY28.

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 FINANCIAL SNAPSHOT
Financial Data In Lakhs

PAT
257% 45.99%
CAGR CAGR

176
4,575

2,883
1,798
27.41 1,102
3.86 472 725.8
FY-20 FY-21 FY-22 FY 23 FY 24 FY 25 FY 26 FY 27 FY 28

➢ Profit after tax grew by 540% from ₹27.41 lakhs in FY21 to ₹175.51 lakhs in FY22.
The company repaid an internal loan that increased cash out flow in FY22. PAT is
expected to grow to ₹4,575 lakhs in FY28.

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 OBSERVATIONS

RNIT has multiplied its sales by 2.67 times within a year in FY22. The company has grown
its sales by about 10 times the average sales growth of listed companies.

01 As observed from RNIT’s balance sheet, the trade payables have declined from
₹98.24 in FY21 lakhs to ₹ 63.81 lakhs in FY22.

02 RNIT managed to grow its sales figures from ₹467.93 lakhs to ₹1,720
lakhs in FY22. The top-line growth was observed to be at 267%

03 RNIT has posted a phenomenal growth in sales of 267% in

FY22. The performance of RNIT is quite
impressive considering that it is in its third year of
04 operations
.
The balance sheet size of the company

05 grew from ₹ 275.62 lakhs in FY20 to

₹ 400.76 lakhs in FY22.

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 KEY FINANCIAL RATIOS

P/E Ratio Debt to Equity Current

Ratio Ratio
FY 2022 FY 2022 FY 2022

56.41 0.61 1.86

Quick Ratio Absolute EPS

Liquidity
FY 2022 FY 2022 FY 2022

1.86 0.76 1.60

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 KEY FINANCIAL RATIOS
Valuation ratios FY20 FY21 FY22 FY23 E FY24 E FY25 E

EPS 38.55 274.10 1.60 4.01 6.08 8.80

P/E Ratio - - 56.41 22.46 14.80 10.23

➢ The EPS for RNIT with 1.1 crore shares stands at ₹ 1.60 per share. The EPS will rise to ₹4.01 in FY23, ₹6.08
in FY24 and ₹8.80 in FY25.
➢ At ₹90 a share, the company’s FY22 P/E stands at 56.41. As per the current share price, the company is
valued at a 1-year forward P/E of 22.46.
➢ The 2-year forward P/E is at 14.80 and the 3-year forward P/E is at 10.23. This leaves a large room for the
company’s valuations to scale up further.

Profitability Ratios FY20 FY21 FY22 FY23 E FY24 E FY25 E

EBITDA MARGIN 6.06% 16.92% 16.46% 30.39% 35.35% 39.42%

EBIT MARGIN 3.97% 7.95% 14.17% 26.21% 29.36% 33.05%

➢ EBITDA margin in FY22 was at 16.46%. The same is expected to nearly double to 30.39% in FY23, 35.35%
in FY24 and 39.42% in FY25. The company believes that the shift to a complete SaaS based model may
yield higher profitability margins in the long run.
➢ EBIT margin in FY22 was at 14.17%. This is expected to increase to 26.21% in FY23, 29.86% in FY24 and
33.05% in FY25.

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 IMPORTANT EVENTS ON TIMELINE (FY’19-20)

• Incorporation of RNIT Solutions & Services.

• Revenue generation from day one of it’s operations from multiple domain segments

• Empanels with NSIC, UPDESCO & APCFSS as a preferred technology partner.

• Rolls out RLMS for multiple institutes.

• Pilot implementations of RLMS across two different states in different verticals.

• Gets contracts from state government of Andhra Pradesh, Telangana, Odisha along with other work
orders from corporate customers.

• Receives 7 projects in FY20 and delivers them in the same year.

• Develops and Integrates the RBIS , which is a flagship product of RNIT for the ‘Society for
Elimination of Rural Poverty’ in Andhra Pradesh.

• Created “RNIT BUZZ” across multiple states on AI-based identification system for upcoming year and
Successfully ended the first year with marginal profits.
• 6 government departments integrate ‘Faceify’ as part of their digital infrastructure.

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 IMPORTANT EVENTS ON TIMELINE (FY’20-21)

• Been awarded first open-source ERP implementation project.

• Customers became RNIT’s brand ambassadors and were introduced to new domains.

• Got Empanelled with RAILTEL Corporation & APTS as their technology vendor. Received work orders
for wider state roll out of Al-based solution & digital platform work orders VMC, A.P Fisheries, and
Animal Husbandry Departments..

• Invested resources in AI-based solutions framework in Healthcare, Opensource ERP and

Education sector.

• Bagged first international work order.

• Platforms and software developed by RNIT sees a daily traffic of 4.5 million per day. 8 government
departments expressed intention on ‘Faceify’ as part of their digital infrastructure.

• Big ticket invoices and quick realizations.

• Receives the ‘CEO insights Award’ under the ‘Best Emerging Category’.

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 IMPORTANT EVENTS ON TIMELINE (FY’21-22)

• Ended third successful year with big% topline revenue increases.

• RNIT is statutory ready for big ticket tenders and deals.

• Ended FY21-22 with COVID PANDEMIC opening more opportunities for our solutions resulting
into several enquiries.

• Empaneled with RAILTEL Corporation & APTS as their preferred technology vendor.

• Large scale geography solution roll out successful completion for all the northeastern state
work orders.

• Big ticket invoices and Quick realization of revenues on all the new work orders.

• Received “Indian achievers award” recognizing RNIT CEO on new technologies.

• Traction from other northeast & northern states.

• Investments into new solution frame works on smart cities / campus solutions.

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 IMPORTANT EVENTS ON TIMELINE (FY’22-23)

• Been awarded a big work order for statewide roll out of FRS for entire education department.
- Engineering Colleges
- Pharma Colleges
- UG & PG Colleges
• Implemented AI based FRS & ESS (Employee Self Services) system for decision making
authorities at highest level.

• Successful statewide roll out of FRS for Health & Family welfare department

Successful statewide roll out of APFRS for government staff across the departments.

• Big ticket invoices and Quick realization of revenues on all the new work orders.
work orders.

• Stage set for exponential growth from next fiscal year along with realizations.

• Opened the doors for all their respective departments for FRS.
- Health & Family welfare
- Skill Development
- State Tourism Department

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 FINANCIAL ANALYSIS

➢ The current and quick ratios are expected to improve to 4.24 in FY23 from
1.86 in FY22.

➢ The absolute liquidity and cash ratios are also expected to improve
drastically in FY23..

➢ The EPS for RNIT with 1.1 crore shares stands at ₹ 1.60 per share. The EPS
will rise to ₹4.01 in FY23, ₹6.08 in FY24 and ₹8.80 in FY25.

➢ The 2-year forward P/E is at 14.80 and the 3-year forward P/E is at 10.23.
This leaves a large room for the company’s valuations to scale up further

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 FINANCIAL RATIOS
ROE ROCE
84.47%
66.09%

8.86%
84.94%
79.40% 1.53%

FY 20 FY 21 FY 22 FY 20 FY 21 FY 22

Year FY 23 FY 24 FY 25 Year FY 23 FY 24 FY 25
(Estimates) (Estimates)

ROE 42.55% 27.58% 28.51% ROCE 49.16% 29.28% 29.75%

➢ The company’s RoA was at 43.79% in FY22 as compared to 6.16% in FY21. The
company’s total asset base is relatively small. RNIT had a RoE of 84.47% in FY22.
The RoE last year was about the same at 84.94%. ROCE for the company jumped
from 12.02% in FY21 to 91.75% in FY22.

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 MATRIX

Strength Weakness
Company focusses on AI and Mobile Apps
Development which is the largest growing segment
High

in IT globally
Market Growth

SaaS model makes projects easy to replicate there-by

leading to lower margins in the future.

Large & mid-size IT companies have exposure to

Low

private and foreign clients, thereby leaving the field

vacant.

Opportunity Threat There are delays in payment by the government

High Low
Market Share

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 COMPANY GROWTH
The firm’s sales figures are growing at 250% per year and will estimate to cross ₹ 100 crores in the next 3 years.

Mr. Srinivas has estimated that the company's

RNIT receives government contracts to revenue will grow by about 40% to ₹ 2400 lakhs in
digitize and modernize its infrastructure 01 02 FY23. Revenue is expected to grow by 30% to ₹3120
for social welfare. lakhs in FY24 and to ₹4056 lakhs in FY25.

RNIT has been growing consistently at

RNIT intends to rapidly grow its pipeline of
contracts from the government sector
03 04 an average rate of 575% over the last 3
years.

The trend in the profit growth and the shift in the

business model suggest that the company may 05 06
05
post a profit growth of about 300% in FY23.

RNIT has implemented a SaaS based

business model which increases cost
efficiency.

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 SHAREHOLDING PATTERN
Share holding Pre Placement
Category Name of Shareholder No of shares % of holding

Promotor Raja Srinivas and family 97,80,000 88.90

Public Other public shareholder 12,20,000 11.09

Total 1,10,00,000 100

Post placement @ 90 per share

Category Name of Shareholder No of shares % of holding

Promotor Raja Srinivas and family 97,80,000 71.38

Public Other public shareholder 12,20,000 8.90

Institutional/General GA capital & Associate 27,00,000 19.70

Total 1,37,00,000 100

RNIT fair market value per share of Equity is Rs.107.64/- as 31st December 2022
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www.gacap.com
 Address (corporate office)
G.A. Capital Management Private Limited
9th Floor, Kura Towers, Prakash Nagar,
Begumpet, Hyderabad-16

Contact Numbers:
+91 91549 04686

Thank Email Address:

salesdesk@gacap.com

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