2023 07 27 TRIG NS Jefferson Research Jefferson Research Financial

FINANCIAL SONAR™: REALITY RADAR ON COMPANY PERFORMANCE
BSE 517562 TRIGYN TECHNOLOGIES LIMITED

REGION OTHER EMERGING OVERALL RATING FOR 4TH QUARTER 2023
SELL
INDUSTRY IT SERVICES
OUR EVALUATION OF 517562 FINANCIAL SONAR™ FOR 517562

4TH QUARTER 2023
Trigyn Technologies Limited is showing strong Earnings Quality, and Valuation
suggests a lower amount of price risk, but Operating Efficiency, Balance Sheet Quality
and Cash Flow Quality are weak. When combined, 517562 deserves a SELL rating. EARN
T I ON ING
The primary reason the overall rating dropped during the last quarter was a decrease in UA SQ
the Cash Flow rating. Another important factor in the downgraded overall rating was a AL
UA
K ST R
declining Balance Sheet rating due to weakening receivable and inventory positions. RIS
LIT
W O
Y
NG
LO
HISTORICAL RATINGS
W Q U ALITY
KEST
B ALANC
Q1 2023 Q2 2023 Q3 2023 Q4 2023
WEA
EA
OVERALL RATING BUY HOLD HOLD SELL
FLO
E SH
EARNINGS QUALITY STRONG WEAKEST WEAKEST STRONG WEAK
SH
EE
CASH FLOW QUALITY STRONGEST STRONGEST STRONGEST WEAKEST
CA
T
OPERATING EFFICIENCY WEAK WEAK WEAK WEAK
OPE CY
BALANCE SHEET STRONG STRONG STRONG WEAK R A TI N G E F FIC I EN
VALUATION LOW RISK LOW RISK LOW RISK LOW RISK
PRICE TRENDS AND VALUATION
Price (INR, AS OF 07/27/23) 128.80 MARKET CAP. 3.9 BILLION PRICE/SALES 0.2
PRICE/EARNINGS 7.9 PRICE/EARNINGS GROWTH NA PRICE/CASH FLOW 7.6
PRICE/ADJUSTED EARNINGS 9.9 PRICE/ADJUSTED EARNINGS GROWTH NA PRICE/ADJUSTED CASH FLOW 7.4
Data not available for this chart.
© 2023 Jefferson Research & Management Report prepared on July 28, 2023
www.jeffersonresearch.com Page 1 of 11

SELL
EARNINGS QUALITY: STRONG

Earnings quality has long been analyzed and used by investors as a measure of the fundamental quality of the company and its
future prospects. Companies may be including certain items that increase reported earnings and often the amount of cash flow
supporting the earnings may be weak. Jefferson adjusts for these kinds of items and other anomalies to produce an adjusted
earnings number that more accurately reflects ongoing business fundamentals at Trigyn Technologies Limited. Reported earnings
are compared to the Jefferson adjusted earnings as a means to gauge earnings quality. Also measured is the amount of cash flow that
underpins earnings.
The earnings quality for 517562 improved from WEAKEST to STRONG.
The annual reported and annual adjusted net income were both equal to 346.8M. The reported operating cash flow was equal to
-520.7M.
NET INCOME VS. ADJUSTED NET INCOME IN MILLIONS EARNINGS VS. OPERATING CASH FLOW IN MILLIONS
Adjusted Net Income Reported Operating Cash Flow
Adjusted Net Income as a Percentage of Net Income Operating Cash Flow as a Percentage of Earnings
97.7% 100.0% 92.0% 89.2% 100.0% 115.1% -150.2% NA NA NA
400 500
472.6
381.9
153.4
346.8
346.8
346.8
390.7
318.9
25.9
200 0
-422.7
25.9
136.8
346.8
346.8
25.9
390.7
153.4
0 -500
Fiscal Year Fiscal Year Trailing Fiscal Year Fiscal Year Trailing
2021 2022 12 Months Q3 2023 Q4 2023 2021 2022 12 Months Q3 2023 Q4 2023
ACCRUALS % OF SALES
Actual Accruals Forcasted Accruals
40.0%
30.0%
20.0%
10.0%
29.0%
29.8%
27.2%
27.7%
10.3%
18.9%
19.8%
18.5%
18.1%
9.0%
8.6%
9.5%
NA
NA
NA
NA
0.0%
Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023

SELL
CASH FLOW QUALITY: WEAKEST

Cash flow is considered by many investors to be the ultimate measure of company performance and more reliable than reported
earnings. The Jefferson measurement eliminates items that are not part of recurring cash flow or the result of actual operations for
Trigyn Technologies Limited. These adjustments to cash flow provide a truer measure of cash flow and the resultant cash flow
quality rating.
The cash flow quality rating for 517562 declined from STRONGEST to WEAKEST.
The reported annual operating cash flow number was -520.7M with an adjusted number that was 98.0M greater than reported. The
reported annual free cash flow was -576.6M with an adjusted number that was 98.1M greater than reported.
OPERATING CASH FLOW IN MILLIONS FREE CASH FLOW IN MILLIONS

Adjusted Operating Cash Flow Adjusted Free Cash Flow
Adjusted Operating Cash Flow as a Percentage of Operating Cash Flow Adjusted Free Cash Flow as a Percentage of Free Cash Flow
105.1% 123.2% NA NA NA 107.8% -120.5% 100.0% NA NA
449.6
292.0
500 500
472.6
314.9
0 NA NA NA 0 NA NA
-478.5
-520.7
-576.6
-576.6
-576.6
-500 -500
-422.7
-1,000 -1,000
Fiscal Year Fiscal Year Trailing Fiscal Year Fiscal Year Trailing
2021 2022 12 Months Q3 2023 Q4 2023 2021 2022 12 Months Q3 2023 Q4 2023
FLOW RATIO CASH FLOW ROI

Adjusted Cash Flow ROI
3.00 20.0%
2.00 10.0%
1.00 0.0%
0.00 -10.0%
Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23
DEBT COVERAGE
Adjusted Debt Coverage
1,000
500
-500
-1,000
Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23

SELL
OPERATING EFFICIENCY: WEAK

The ability of Trigyn Technologies Limited to earn a profit is in part the result of how rapidly it converts its collection of assets into
revenues and the resulting percentage available in earnings and cash flow after expenses have been paid. Operating Efficiency is
measured by a combination of factors including: return on invested capital (ROIC), gross margin, EBIT margin, asset turnover, equity
turnover, and lastly Staff, General, and Administrative costs as a percentage of sales (SGA).
The operating efficiency rating for 517562 remains WEAK.
GROSS MARGIN EBIT MARGIN

Change from previous quarter: DOWN▼ Adjusted EBIT Margin Change from previous quarter: DOWN▼
36.0% 10.0%
34.0% 7.5%
32.0% 5.0%
30.0% 2.5%
NET MARGIN SG&A AS A PERCENTAGE OF SALES

Adjusted Net Margin Change from previous quarter: DOWN▼ Data not available for this chart.
6.0%
4.0%
2.0%
0.0%
Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23

SELL
OPERATING EFFICIENCY: WEAK

ROIC RETURN ON INCREMENTAL INVESTED CAPITAL
Adjusted ROIC Change from previous quarter: DOWN▼ Change from previous quarter: UP▲
12.0% 800.0%
10.0% 600.0%
8.0% 400.0%
6.0% 200.0%
4.0% 0.0%
ASSET TURNOVER EQUITY TURNOVER

Data not available for this chart. Change from previous quarter: UP▲
2.00
1.95
1.90
1.85
1.80
Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23
CASH CONVERSION CYCLE IN DAYS

Data not available for this chart.

SELL
BALANCE SHEET QUALITY: WEAK

The balance sheet shows the ability of Trigyn Technologies Limited to pay its bills and fund future growth. It also provides clues to
aggressive accounting since reported earnings that do not generate cash flow generally end up somewhere on the balance sheet. The
following are analyzed in determining balance sheet quality: quick ratio, current ratio, cash position, accounts receivable days sales
outstanding (AR DSOs), and number of days inventory is held prior to sale to customers (Inv Days).
The balance sheet rating for 517562 weakened from STRONG to WEAK as the cash position deteriorated over the last quarter. the
cash position offset this by deteriorating from 1,640M to 1,381M. The lower amount of cash on hand indicates that 517562 will have a
harder time meeting financial obligations.
RECEIVABLES DAYS OUT INVENTORY DAYS OUT

Change from previous quarter: UP▲ Change from previous quarter: UP▲
100 3.00
95
2.50
90
2.00
85
80 1.50
CURRENT RATIO QUICK RATIO

Change from previous quarter: UP▲ Change from previous quarter: UP▲
4.50 4.50
4.00
4.00
3.50
3.50
3.00
3.00 2.50

SELL
BALANCE SHEET QUALITY: WEAK

DEBT/EQUITY DEBT/ASSETS
Debt/Tangible Equity Change from previous quarter: DOWN▼ Debt/Tangible Assets Change from previous quarter: UP▲
2.00 1.50
1.75
1.25
1.50
1.00
1.25
1.00 0.75
CASH IN MILLIONS
Change from previous quarter: DOWN▼
2,250
2,000
1,750
1,500
1,250
Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23

SELL
VALUATION: LOW RISK

A favorable valuation (a LEAST RISK or LOW RISK rating) implies lower potential downward price risk that is evidenced by a
company price multiple that is lower than the corresponding sector average. The valuation rating is based on both absolute and
relative levels at Trigyn Technologies Limited compared to its peers within its sector based on price to earnings (PE), price to
earnings growth (PEG), price to sales (PS), and price to cash flow (PCF).
The valuation rating for 517562 remains a LOW RISK.
PRICE/EARNINGS
RANGE As Reported Adjusted IT Services Sector
LAST 2 YEARS LOW HIGH AVERAGE
20
Reported Price/Earnings 2.60 11.00 7.90 15
Adjusted Price/Earnings 2.60 11.30 8.35
10
Sector Price/Earnings 19.20 30.60 24.78
5
10.6
21.6
1.7
1.7
1.5
11.0
11.2
11.3
8.8
9.6
9.9
7.9
0
Q1 2023 Q2 2023 Q3 2023 Q4 2023
PRICE/CASH FLOW
20
Reported Price/Cash Flow 2.50 9.00 6.86 15
Adjusted Price/Cash Flow 1.90 7.40 5.46
10
Sector Price/Cash Flow 17.40 22.30 19.99
5
20.5
19.5
18.7
21.2
9.0
6.4
8.6
6.6
7.4
7.4
6.5
7.6
0
Q1 2023 Q2 2023 Q3 2023 Q4 2023
PRICE/EARNINGS GROWTH
2.00
Reported Price/Earnings Growth 0.20 0.20 0.20 1.50
Adjusted Price/Earnings Growth 0.20 0.20 0.20
1.00
Sector Price/Earnings Growth 0.90 2.00 1.41
0.50
2.0
NA
NA
NA
NA
NA
NA
NA
NA
1.5
1.7
1.7
0.00
Q1 2023 Q2 2023 Q3 2023 Q4 2023
PRICE/SALES
RANGE As Reported IT Services Sector
3
Reported Price/Sales 0.20 0.30 0.28
Sector Price/Sales 2.30 4.50 3.18 2
1
0.3
0.3
0.3
0.2
2.9
2.3
2.7
2.7
0
Q1 2023 Q2 2023 Q3 2023 Q4 2023

SELL
PEER VALUATION COMPARISON

PRICE/ PRICE/
PRICE ON PRICE/ PRICE/ CASH EARNINGS VALUATION
TICKER COMPANY MARKET CAP. 07/27/23 EARNINGS SALES FLOW GROWTH RATING
SOP Sopra Steria Group 4.3 B 207.20 13.4 0.6 10.0 0.1 LEAST RISK
3625 Techfirm Holdings Inc. 4.2 B 592.00 NA 0.6 -24.2 NA LEAST RISK
300541 Beijing Advanced Digital Technology Co. Ltd. 4.0 B 13.10 40.0 1.6 49.0 NA LEAST RISK
517562 Trigyn Technologies Limited 3.9 B 128.80 7.9 0.2 7.6 NA LOW RISK
300231 Beijing Trust&Far Technology CO.LTD 3.9 B 9.30 24.6 1.8 21.1 NA LEAST RISK
002771 Beijing Transtrue Technology Inc. 3.9 B 18.40 264.7 4.4 2,902.4 NA MOST RISK
2351 Asj Inc. 3.8 B 481.00 NA 1.3 37.5 NA MEDIUM RISK
IT SERVICES SECTOR 231.7 B — 21.6 2.3 21.2 2.0 —
PEER OPERATING COMPARISON

GROSS EBIT NET CASH OPERATING
MARGIN MARGIN MARGIN CONVERSION EFFICIENCY
TICKER COMPANY MARKET CAP. (%) (%) (%) ROIC (%) CYCLE (DAYS) RATING
SOP Sopra Steria Group 4.3 B 16.1 8.3 5.3 9.2 56.0 LOW RISK
3625 Techfirm Holdings Inc. 4.2 B 22.5 -3.1 -15.3 -6.8 NA MOST RISK
300541 Beijing Advanced Digital Technology Co. Ltd. 4.0 B 16.4 0.0 2.1 7.3 292.0 MEDIUM RISK
517562 Trigyn Technologies Limited 3.9 B 33.4 2.6 0.8 5.3 NA MEDIUM RISK
300231 Beijing Trust&Far Technology CO.LTD 3.9 B 23.5 6.5 4.5 7.3 184.0 MOST RISK
002771 Beijing Transtrue Technology Inc. 3.9 B 14.5 -31.5 -22.9 0.1 577.0 MOST RISK
2351 Asj Inc. 3.8 B 38.4 6.9 5.6 2.3 -32.0 LOW RISK

SELL
DEFINITIONS
Adjusted Net Income: Adjusted Net Income is a company’s from continuing operations.
reported net income less adjustments for one-time and
Adjusted Debt Coverage: Adjusted Debt Coverage is a measure
non-operating items yielding a more realistic picture of a
of a company’s ability to cover its debt obligations with cash
company’s ongoing earnings.
flow it generated from continuing operations, calculated using a
Accruals – Forecasted and Actual: The comparison of forecasted company’s adjusted cash flow.
and actual accruals identifies a discretionary build not
Adjusted Return on Invested Capital: Adjusted ROIC assesses a
attributable to a company’s sales growth, and could be a sign of
company’s efficiency at allocating the capital to profitable
poor earnings quality. For our purposes, the forecasted accrual
investments using a company’s adjusted net income (see above)
component is an aggregate measurement of total accruals
yielding a measure of how well a company is using its capital to
(short-term balance sheet accounts) that distinguishes between
generate returns.
“normalized” and “extraordinary” accruals. The normalized
accruals are based on historical relationships between sales and Adjusted EBIT Margin: Adjusted EBIT Margin is a measure of a
accruals and are dynamically adjusted over time to account for company’s earnings before interest and income taxes less
changes in the ratio between these two variables. Normally, adjustments for one-time and non-operating items divided by a
short term accruals will grow as sales grow – i.e., the company’s sales.
“normalized” measure. Discretionary accruals are the portion of
accruals that are in excess of the base factor and therefore Adjusted Net Margin: Adjusted Net Margin is a measure of a
exceed the normal and are “extraordinary”. company’s net income less adjustments for one-time and
non-operating items divided by a company’s sales.
Adjusted Operating Cash Flow: Adjusted Operating Cash Flow is
reported operating cash flow less adjustments for one-time and Return on Incremental Invested Capital: ROIIC measures the
non-operating items yielding a more realistic picture of a relationship between incremental investment and incremental
company’s ongoing cash flow from operations. net operating profit after tax. This provides a measure of the
returns a company is earning on recent investments rather than
Adjusted Free Cash Flow: Adjusted Free Cash Flow is reported all investments as measured by ROIC.
operating cash flow less adjustments for one-time,
non-operating items and capital expenditures. This provides a Cash Conversion Cycle: The Cash Conversion Cycle measures
more realistic picture of a company’s ongoing cash generation the number of days working capital is tied up from the date of
from operations after capital investments. purchase of raw materials until the collection of cash from the
sale of the product.
Flow Ratio: The Flow Ratio is a measurement of management’s
effectiveness in managing its working capital to maximize the Debt to Tangible Equity: Debt to Tangible Equity is a ratio of a
company’s cash flows. The measure is a ratio of a company’s company’s debt to equity less adjustments for goodwill and
non-cash current assets to its non-interest bearing short-term other intangible assets yielding tangible equity.
liabilities.– These non-cash assets include items such as Debt to Tangible Assets: Debt to Tangible Assets is a ratio of a
accounts receivable (which are essentially interest-free loans to company’s debt to total assets less adjustments for goodwill and
customers) and inventory (which is subject to obsolescence or other intangible assets.
spoilage). The non-interest bearing liabilities are essentially
interest-free loans to the company. A lower ratio implies tighter Price/Adjusted Earnings: Adjusted Price/Earnings is a relative
cash management for a company as it has less cash tied up in valuation measure comparing a company’s share price to its
non-cash current assets and is able to utilize interest free loans adjusted net income.
from suppliers. Price/Adjusted Cash Flow: Adjusted Price/Cash Flow is a
Cash Flow Return on Investment: Cash Flow ROI is a measure relative valuation measure comparing a company’s share price
of a company’s ability to generate operating cash flow from its to its adjusted cash flow.
invested capital. Many analysts consider this measure preferable Price/Adjusted Earnings Growth: Adjusted Price/Earnings
to an earnings return measure such as ROE since cash flow is Growth is a relative valuation measure comparing a company’s
considered a more reliable measure. share price to its growth in adjusted earnings.
Adjusted Cash Flow Return on Investment: Adjusted Cash Flow
ROI is a measure of the ability to generate operating cash flow
from its investment in capital calculated using a company’s
adjusted cash flow.
Debt Coverage: Debt Coverage is a measure of a company’s
ability to cover its debt obligations with cash flow it generated

SELL
ABOUT THE FINANCIAL SONAR™ REPORT & METHODOLOGY
The Jefferson Financial Sonar™ ratings system classifies companies into three categories: Buy, Hold and Sell. The Financial Sonar
rating is the result of a point scoring system derived from the five main criteria. The more negative the rating, the more likely the
overall rating will be a Sell. More positive criteria will support an Overall Rating of Buy.
Jefferson Research & Management has developed the Financial Sonar™ Rating System which is based upon five analytical criteria:
Earnings Quality, Cash Flow, Operating Efficiency, Balance Sheet, and Valuation. The first four criteria are rated in one of four
categories (best to worst): Strongest, Strong, Weak, Weakest. Valuation is also rated in one of four categories (best to worst): Least
Risk, Low Risk, Medium Risk, Most Risk.
ABOUT JEFFERSON RESEARCH & MANAGEMENT
Jefferson Research & Management is an independent investment research and advisory firm founded in 1989 and based in Portland,
Oregon. The firm has been providing fundamental research to institutional and individual clients for more than 20 years. Financial
Sonar™ ratings are based on a proprietary rating system developed by Jefferson Research & Management that measures the changes
in company fundamentals using information from financial statements.
DISCLAIMER
This report is for information purposes only for clients of Jefferson Research & Management and in no way should be interpreted as a
complete investment recommendation. This report has been prepared exclusively by Jefferson Research & Management.
Information contained in this report is obtained from sources believed to be reliable, but no guarantee is made to its accuracy and no
representation is made that it is complete, or that errors, if discovered, will be corrected.
1) Jefferson Research & Management and its staff are not involved in investment banking activities for firms covered.
2) No employee of Jefferson Research & Management is on the board of any covered company and no outsiders are members of
Jefferson Research & Management’s board.
3) Jefferson Research & Management employees trading stock in rated companies are subject to trading restrictions prior to release
(once identified) and for a one day period subsequent to rating changes but do not individually or collectively own more than 1
percent of the outstanding stock of a covered company.
No part of this report can be reprinted or transmitted electronically without the prior written authorization of Jefferson Research &
Management.
Reproduction of any information, data or material, including ratings (“Content”) in any form is prohibited except with the prior
written permission of the relevant party. Such party, its affiliates and suppliers (“Content Providers”) do not guarantee the accuracy,
adequacy, completeness, timeliness or availability of any Content and are not responsible for any errors or omissions (negligent or
otherwise), regardless of the cause, or for the results obtained from the use of such Content. In no event shall Content Providers be
liable for any damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection
with any use of the Content. A reference to a particular investment or security, a rating or any observation concerning an investment
that is part of the Content is not a recommendation to buy, sell or hold such investment or security, does not address the suitability
of an investment or security and should not be relied on as investment advice. Credit ratings are statements of opinions and are not
statements of fact.
Credit: Copyright © 2018, S&P Global Market Intelligence (and its affiliates, as applicable).

2023 07 27 TRIG NS Jefferson Research Jefferson Research Financial

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FINANCIAL SONAR™: REALITY RADAR ON COMPANY PERFORMANCE

BSE 517562 TRIGYN TECHNOLOGIES LIMITED

OUR EVALUATION OF 517562 FINANCIAL SONAR™ FOR 517562

PRICE TRENDS AND VALUATION

Data not available for this chart.

BSE 517562 TRIGYN TECHNOLOGIES LIMITED

EARNINGS QUALITY: STRONG

BSE 517562 TRIGYN TECHNOLOGIES LIMITED

CASH FLOW QUALITY: WEAKEST

OPERATING CASH FLOW IN MILLIONS FREE CASH FLOW IN MILLIONS

FLOW RATIO CASH FLOW ROI

BSE 517562 TRIGYN TECHNOLOGIES LIMITED

OPERATING EFFICIENCY: WEAK

GROSS MARGIN EBIT MARGIN

NET MARGIN SG&A AS A PERCENTAGE OF SALES

BSE 517562 TRIGYN TECHNOLOGIES LIMITED

OPERATING EFFICIENCY: WEAK

ASSET TURNOVER EQUITY TURNOVER

CASH CONVERSION CYCLE IN DAYS

BSE 517562 TRIGYN TECHNOLOGIES LIMITED

BALANCE SHEET QUALITY: WEAK

RECEIVABLES DAYS OUT INVENTORY DAYS OUT

CURRENT RATIO QUICK RATIO

BSE 517562 TRIGYN TECHNOLOGIES LIMITED

BALANCE SHEET QUALITY: WEAK

BSE 517562 TRIGYN TECHNOLOGIES LIMITED

VALUATION: LOW RISK

BSE 517562 TRIGYN TECHNOLOGIES LIMITED

PEER VALUATION COMPARISON

PEER OPERATING COMPARISON

BSE 517562 TRIGYN TECHNOLOGIES LIMITED

BSE 517562 TRIGYN TECHNOLOGIES LIMITED

ABOUT THE FINANCIAL SONAR™ REPORT & METHODOLOGY

ABOUT JEFFERSON RESEARCH & MANAGEMENT

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