Analyzing...
Ladies and gentlemen, good day, and welcome to the earnings call of Olatech Solutions Limited for the financial year ended 31st March 2025.
All the participants are currently on mute. The floor will be open for questions once the management presentation concludes. Representing Olatech today we have Mr. Amit Singh, chairman and managing director, Mr. Navneet Kakkar, chief executive officer. Without further delay, I now invite the management to share a brief overview of the company's performance and provide insights into our operations. Thank you, and over to you, sir.
Thank you, Siddhi. Good evening, everyone. This is Navneet. So, I look after the operations of Olatech Solutions Limited. I'll just give you a brief introduction of the company. So we are, ISO 9001 certified company. We are mostly into software development, hardware, EMS and in enterprise. We do so custom, software, digital marketing and SEO, SME. So, these are the offerings we have a brand called Epiphany, where we have made our own products. The products are not management tools like DCIM. Then we have other tools like NMS, so we have these in our brand called Epiphany. I'll give you a brief introduction, the company was founded in 2014, so we had a vision to integrate it in telecom solutions. We wanted to give good products to the customer, so that customers can have our better operations and better efficiency in their own company.
So, these are the facts and figures. So, we have completed around 280 projects. Our team comprises of around 130 plus customers, 130 plus employees and ongoing projects are around 188. We have our dedicated team for R&D, where we develop new projects, new products. We have presence in around 8 locations and the clients are, we have a diverse list of clients. These are the new products which we have launched recently.
One is the ULMS, which is called unified log management system. Then we have an Earnin.me, It is for influencer-based marketing then Toowe.io for digital marketing. Then we have a product called central log correlation system, this is used in sync with ULMS. So, this is mainly used in telecom companies. Then we, since we are doing hardware AMC also so we have, we are planning to launch an e-commerce portal for spare parts sale. Then these are the power social media, Scheduler AI, calling WhatsApp automation SEO tool. These are part of our digital marketing team. These are, we are selling it to customers and we are getting good traction on these products.
Our old product, we have AAA, we are releasing a new version of AAA with certain new features. So, this is the timeline of the company. It was founded in 2014. Then we had developed few NOC tools and then we did expansion in 2016-17, then in 2018 we got a partnership with the Xfusion. 2019-20, we added a certain portfolio like SEO and SME and digital marketing in our products and we also started hardware AMC and hardware selling. So, in 2022, we listed the company and now this year we have done a I. You people have already seen the results. So, we'll share the results also. So, we have done in the last financial year. We have done good job.
These are the core values. We when we deliver any product and whether it is hardware software or even our services digital marketing services, then we try to have transparency. We try to give the best product to the customer as far as customers’ needs, and we always innovate so that we can have a leverage in the market. If we don't know it, then we'll be stuck. So, these are key strengths. Our management is very experienced. We have almost all the senior people we have almost 100 years of, if we put together, we have 100 years of experience. We have everything, we develop in house. We don't outsource it and the delivery is based on agile method and the operations team is very efficient in very customer centric, so that customer is not impacted in whatever video, whether it is hardware EMS, or these are some certification and awards which we have received.
So, these are the 3 verticals one is the hardware support business unit, the other is the software development and product business unit. And 3rd one is an enterprise business unit. We do custom software; we do digital marketing and website development mobile apps. All these are software product is mainly for telecom software which we give to big customers like airtel Vodafone, tata-tele and tata-play BSNL hardware support business unit. We have customers like where we do hardware MC and we sell hardware also. So, hardware
Mc, we have customers like Paytm just there. These are mentioned in the future slides. So, these are our major customers in telecom tata tele communication, tata sky broadband, BSNL, Tata play city then DC and cloud data Centre, we have HGC, CloudExtel, YOTTA, Rack Bank, TenCent. Then BFSI, we have Indian Bank, Canara Bank, Bank of China, Paytm, Shapoorji Palllon. Then these are Government and Ministry of Electronics and Information Technology government of Manipur, rental, Indian Railways, BSE, Petroleum, NTPC and in Enterprise we have Mahindra, just Dial Club, Mahindra starlight tech, data communications, and IT and ITES we have TCS, Dialogic, Alepo and these are our SME customers, Comrade Crystal, which you must be knowing. It is a hotel company SAP filter, NDTT. These are a few of our major customers.
So, we have certain distribution partners, since we do hardware also, and we have our partners also. So Redington, Xfusion, tech data, Ingram, Rahi, and inflow are our distribution partners. So, in hardware, we do these kinds of things, which is DC maintenance, operation support, OS support network and security virtualization, OpenStack and OpenShift, upgradation and migration SAP Infra solution, hybrid cloud, HCI solutions, database and middleware, storage, backup automation, AI and cloud migration. Also, we do, these are our software tools. These are IT NOC tools then, DCIM, you using data centre infrastructure management tool, then we have ULMS. ULMS is used in mostly in telecom EMS can be used anywhere. Billing and CRM can be used anywhere. We have a complete suite of billing and CRM and AAA and Wi-fi can be used in any of the industries. AAA is mostly used in ISPS and telecom operators. So, in enterprise business unit, we do, we have we get orders for custom ERP, custom CRM, e-commerce design and development website, mobile app design and then digital marketing. Digital marketing includes all that SEO, SMO Facebook, Google Meta’s.
So, we have opened few offices, new offices this year. So, we had our office in Navi Mumbai, Pune, and Delhi and Noida, and we have open offices in Calcutta and Chennai also. So, this is our footprint. These are the industries which we target manufacturing healthcare, retail, telecom, IT, commerce, education, and logistics.
So, we have done around 21 crores of business in last financial year. So out of that, 15 crores come from hardware support business unit, 4 and a half of crores come from software development product business unit and 1.29 crores come from enterprise business unit. So, Amit is there in the call in this. He's the MD. I look after, I'm the CEO, he is the CTO. And Sameer Saluja is the chief sales officer. So, this is the balance sheet from last year. This is the equity capital has increased from 4.32 to 4.45, reserves and surplus have increased from 305 to 1378, borrowings have increased from 45 to 2.35. Then other liabilities are, have agreed from 1.54 to 2.19 we have been, we have taken one fixed asset increase. We have purchased one office in Rupa solitaire. So that is why fixed assets have increased.
Then investments, we have done certain investments. So, investments you can see from 1.26 is the investment, then other assets include around it is here so total liabilities and assets are shown here then this is the P & L, so our revenue from operations has increased year on year 39% from 15.15 crore, we have achieved this year 21.04 crore. Total income has increased from 15.17 crore to 21.22 crore.
EBITDA has increased from 4.37 crore to 5.58 crore. And the PAT has increased from 3 crore to 4.24 crore. So, the EBITDA margin has gone a bit down, but it is almost same. 28.88 to 27.95 PAT margin has increased.
Profit has increased; EBITDA has increased. So, this is same thing has been shown in another slide that the revenue from operation has increased by 39%. EBITDA has increased from 34% and PAT has increased around 41%.
So, results we have results have increased by 350% because we have done some preferential and allotment.
So, because of that, this is the investment. So that's it.
Thank you, sir, we will now begin the question-and-answer session. Participants who wish to ask a question may please raise their hand. You can also submit your queries through the Q. And A. Tab. we'll take the 1st question from Mr. Harsh Vardhan Then.
Yeah. Hi, Mr. Harsh Vardhan.
Hello! Am I audible?
Yeah, yeah.
Okay. Hello, sir, good afternoon. So like. Congratulations for a good set of numbers year on year. But I will like to know, like in H1 your PAT margins declined. So, is there any reason behind it? And do you think like you, it can recover to the previous PAT margins in FY26. Or how is it going to be in future?
Yeah. So, Amit. Would you like to take this call? This question.
Yes, Navneet.
Would you like to answer this, or shall I answer.
I can take this call. Hi! Harsh! Hi, Amit here. Good evening.
Good evening.
So, your question is that whether we can increase, improve the PAT margins, right?
Yeah, right. And what was the reason for the decline in H2.
So, in the last H1 earning call only I have told that because of one of the orders which has got postponed, we'll not be able to maintain. That much revenue equivalent to H1. Whatever we have done, and certainly in H2 we have done some business, which is low margin business If, whenever we will do, some margins will go down. But overall, if you see, margins have not gone down to that extent and definitely in the next year these margins will improve. But as we have told last time, also that we will be doing some business on exclusion, on hardware sales. So there the margins are less so overall margin may come down, but Turnover will increase. Okay, okay, got it. All guidance for the next year is that we will try to maintain the margin. Whatever is there till now.
Okay, makes sense. And what is the expected top line in FY 26, like in growth terms.
FY26. We have a target of you can say approximately 50 crores. So, target is little bit more than 50 crores, but the 50 crores are what we would like to achieve in this year.
Okay, got it. So that is almost 1.5x of the Last year, like FY25.
2.5 times.
2.5 times, okay.
Currently, we have closed at 21.42, next 3 months, yeah, 150% growth.
Got it. Thanks. And what is the vertical wise breakdown of the same like? Which vertical are you targeting more growth in like the enterprise. One of the software or the hardware.
So, 1 more thing I would like to update here is what? Because Navneet is a very humble person, so he does not, talk much, and he does not say as much. So, Navneet has been appointed as the CEO of the company of Olatech Solutions Limited and executive director earlier, he was taking care of the complete operations. So, now we have also, made a different company, which is called Olatech digital solutions, private Limited, and CEO of that company is a person called Anil Tiwari.
Who, again, reports to Navneet Only. So, for digital we have a very good focus. And that's why we have separated the company also. So, earlier it was, you can see here it is written enterprise business unit, in which what number we have done last year is 1.3 crores, and this year already we have an order book of around 3 crores. In this year we are expecting, under the leadership of Navneet and Anil, that we will reach to at least 10 crores. This is a conservative figure for this year.
Okay in the enterprise.
But.
Unit, right? So almost 8x growth in that.
Yeah, so enterprise business unit, we will see a good growth and for software, last year you have seen it is 4.5 crores and this year in software, we should have because one of the big orders has come in the software business unit only. So, software development and product business unit. So that order is in software unit. But there are some other 3rd party products also. So that will see a growth of around, I think it should go to around 30 crores at least in this year.
Okay, got it.
Okay? And this hardware support business unit has already done good in last year, and we are expecting 30 to 40% growth on top of that. Got it. If you see 2025 crores in hardware around 30 crores in software and around 10 crores in enterprise.
Okay. Great.
Enterprise will be in a different company called Olatech Digital Solutions Private Limited, in which Olatech holds 85% equity, so that will be considered accordingly.
Got it, and by the large order, do you mean that 44 cr. Order which you receive.
Yes, 45 crore order that we have got, it will be billed around 50% in this year and remaining will be billed in the next 10 years.
Yeah, got it got it makes sense.
So, and this also one more thing to update to all the investors that we have been doing software.
We have been doing hardware. We have been doing enterprise or digital part of it. But if you see this order that we have got this order has, except digital, it has everything. It has software, it has hardware. It has 3rd party component services, which is a system integration. It has AMC For 10 years and it has managed services also for 10 years. So, if you see, we have got a combined order for everything, and our focus is to get similar orders in future.
Great, that's great and in the Enterprise business unit, which product is your like, the best product in which you are getting the maximum traction like is it.
Good.
Or earning me, or like, how are those products performing.
I will, I will update you. So, enterprise, Earlier, we were doing all the digital marketing services from where we have started which thousands of companies are doing in India. We also started due to some reason because we were doing for our own. So, we thought, we'll do it for others as well. So, this services SEO SMO website development. SMO means promotional Meta and Google. So, this kind of activities are coming under digital marketing services. So now we have changed our focus from digital marketing services to digital marketing products and influencer marketing as well. So earning is influencer marketing. We are not using the portal as of now but the main business. What I am telling about 3 crores of order book in that means influencer marketing will be around 1.8 crores. Okay, so influencer marketing business, we have gained good traction in the market. It is led by a person called Ranjith, who is based out of Hyderabad. So currently, we have started from Hyderabad. We have got good customer base in Hyderabad. So currently, we have heritage foods, which is a big company of South India the owner of that company is, I think, Chandrababu Naidu and the other one second. So, we have many big customers in that. We have a very big hospital in that near; I have to see the name. So, there are 5 6 big companies which we have acquired for influencer marketing.
Okay? And then the other one we have so many software products that we have built, which are used to support the digital marketing services. Okay, so digital marketing services, those we are planning to forgo to market very soon, and we have still not gone to the market on 2 weeks. We are just selling it when set the initial stage, you can see. So, there we will start the campaign and everything in marketing in the from the second quarter.
Okay, makes sense, makes sense. Thanks for the satisfaction.
There is 1 customer called, Is there pure EV. It is the EV company that is there. So, some of the big customers we have acquired with good.
So, just out of curiosity. So, in your influencer marketing business, you act as a mediator between the companies or the brands and the influences right.
So, it is. Yes, we act as a mediator, you can say, but actually it is not only mediator, so I will tell you. Like for heritage. We have done for them brown ghee, which is used in West Bengal Kolkata area. So, there we have taken a very big influencer who has millions of views on every post. He's a chef. So that we have taken. We have done the complete video shoot. We have taken that chef. Then we have designed the complete, what kind of means campaign it will be. And then that campaign is there on YouTube and other places. And that is a good promotion for the company. So, it is not only mediating that we are taking something means we have taken one influencer, and charge to the customer. Why, it is not like that. Got it got it. Win is big.
You are providing a comprehensive platform to enable.
Complete. Yeah, along with that so like. Similarly, for Coromandel, also, they are into pesticide, insecticide and others. So, for that, we go and do the video shoots in the village areas, and all means whatever is required. All that we do, the shoots we do the marketing. We use the influencers. Then we get it approved, and then we do it.
Got it makes sense. So how do you see this business going forward like, do you think like this?
Because this is quite new, the influencer marketing, and all business is quite growing and new in India. So how do you see the business potential in this particular segment, apart from other.
Yeah, we see this business as a growing business, and we have the complete focus on this. And that is why we have separated the company so that it has a separate digital or media company kind of a base, so that we can go and approach customers. We already have 200 approximately 200 customer bases, who are big customers. But we have not gone to any of the customers for these kinds of services. So, 1st of all. We'll have the references. We'll have good testimonials from the customers, and then we will try to pitch in and cross pitch in and cross sell all these products. So currently, these are some of the likes. We have got this customer in in one field, another field, then the 3rd field.
Got It, makes sense.
Then we will reach to other customers in that field as well.
Yeah.
Currently it is being done only in Hyderabad. We have opened the branches, as Navneet said. We have opened the branches in Noida, Hyderabad, Chennai, Kolkata, and now we are opening in Ahmedabad.
So everywhere this will be replicated. Mumbai and Pune is already there.
Okay, great. Great. So just one.
We have planned to go to the 10 cities and for our hardware support business unit, also, we need to keep the spares also in all the major cities. So currently, wherever we have the warehouses, we have taken it on rent. So now as in as and when we will grow, and we will make our own offices. We'll keep it for rent, and then all the vertical people can sit together and do the business also.
Got it makes sense. So just one last question. So currently, in about 25 the major revenue is coming from the hardware business, right? And in hardware business. I guess it will be exclusion distribution or.
No exclusion. Distribution business is yet to start. We have already got the distribution, but we have not yet got any customer, as of now it is the complete AMC. Business which is their business.
3rd quarter.
It is hardware support. So, it is AMC. But hardware business will also come in this. So, extrusion business is yet to come. It will come, and whenever it will come it will reduce the PAT margins.
Okay.
Because it will come at a lower margin than the margin which we have in software or we have in AMC. But that will increase the turnover. That's what I was telling in the study.
Got it. Got it so I think like in a in your FY26 projections this Xfusion thing was not included. I guess, because from the software and the enterprise vertical only you were doing something around 20 crores, and then around 30 crores from that hardware.
I told currently for 50-60 Crore, that's what.
Yeah.
So that we are assuming some 5-crore business for exclusion. Also.
Excision. Okay. Okay.
25 crores when I say I have told 20 only. So, we have target of 25 crores extrusion business.
Got it. That's why the PAT margin, which will increase from software and enterprise, will again go down, due to exclusion and overall. It will be the same as ever 25.
We will try to manage the PAT margins.
Got it. Got it? Okay? Thanks. Thanks for the answers.
Okay, we'll take the next question from Mr. Shubham Gupta.
Yeah. Shubham. Good evening.
Hi! Hi, sir! Hello! Good evening! So, really great to see the numbers. Sir, one question like, how will AI impact like what are the positive and negative impacts of AI in your business?
So, AI will impact positively in our business because we are also using AI for this digital product that we are building. There are 15 products that we are building. I have told in H1. Also, we have already spent a lot of money in that and we'll be spending in future. Also, the most of the products are AI based. So like images, videos is speech to text, to video, video, to text, then automated calling robotic calling, as you might be receiving calls from banks and other things. So, all those things are there.
Okay and, sir, like, do you see any negative impact? Also, of AI like, can it go grow your margins also? Because with like, you won't be needing that many number of people, right?
Sorry, Shubhamji. What? What? You asked?
Yeah. Yeah. So, what I'm saying is, you won't be needing that many number of people like.
No, no, it is not like that. See? Whenever when the computer came, people thought that now computer has come, people are not required.
Then Software came. Now AI has come. All this is already prevalent since long, so many years. Everything is there. AI is artificial intelligence. We have the real intelligence as well. So artificial intelligence cannot replace real intelligence. It is only that we can optimize the resources by 20-30%. And the software products that we are building those products are we are building for the customers. So, to build the software, we will need more people. And when the customer will use it. It will have the. It will have a smaller number of people.
Okay, okay. So, for customers, they can reduce their resources for us. We have to increase the resources to build those products which are having artificial intelligence built into it.
Okay, so, sir, out of these 15 products, how many are ready right now?
7, 8 are ready now, and 7, 8 are under work in progress.
This data we can get from the website, right?
You will not be able to get this from website. We can definitely, if you want, we can publish something on BSE website. So, you can see. yeah, so it will be beneficial if we can get some information about all the protocols. So yeah, I have already told you. I will. if you want, we'll publish it also.
Okay. Okay. Some like some description. Also, about each of the product would be great.
Yeah, okay.
Thank you. Amit.
You are welcome.
Okay, we'll take the next question from Mr. Hemant.
Hello! Am I audible?
Yes.
Yes, thank you for the opportunity, sir, and congratulations on a good set of numbers. So, I have 3 questions, basically. I just want an update on exclusion server business. The second question is like, what kind of work we are doing with respect to data centres. And what is the revenue potential from a data centre kind of segment. For next 2, 3 years.
Navneet, you want to take it.
Yeah. Yeah. So, exclusion. Your 1st question is about exclusion. Correct? Hemantji.
Yes, yes.
Yeah. So, exclusion and hardware. We have already got the distributorship from exclusion.
So, it will start to kick in. I think in one quarter, maybe in the next quarter it should kick in. Then.
Okay.
Yeah, yeah. So, you want numbers for that, or what.
No, no, I mean, I just wanted to understand. Like, when can we see any kind of revenue that is coming from.
Yeah, it will take around one quarter, Hemantji. After one quarter you will see the numbers of exclusion.
So, in H1 numbers we'll have some kind of revenue that is coming.
Some revenue will come. Yes, in.
And full-fledged kind of revenue. What kind of revenue are we, you know, expecting from that segment.
So exact numbers I don't think I can share. But yeah, you it will be a good substantial part of HSBU, and so it's only we'll try to increase in next one or 2 years.
Okay.
Yeah. Same. So Hemantji, as I said that we have a target of doing sales of around 5 crores for extrusion, and by end of H1 you will see around 2 crores approximately and remaining, you should see in H2.
So, this is the target that you have taken. It is not something which is confirmed the plan.
That is fine, sir. So that is, this is for this financial.
Only for exclusion, only for exclusion servers.
Right, right.
And second thing, I think you wanted to know, what do we do in Data centre.
Right.
So, data centre, we have a software called DCIM. So, it is for data canter infrastructure management where? And we have NMS also ITSM, which is also which also go in data centres. NMS is, I'll tell you briefly about NMS first. So, NMS will use is used to monitor all the network devices which are there in data centre or which are connected with other data centres. Also. ITSM is one device which is used as a ticketing tool. It is ticketing tool to given to the customers to raise tickets and to resolve their queries regarding hardware, and IT infrastructure and DCM. In DCM, you can monitor the cooling. You can monitor the temperature. You can monitor the CCTV. You can monitor the power. You can monitor every rack, every sub rack also, even you can monitor the server also. Okay, so have you deployed any of these solutions with any of the current customers? We are in the process of; we are having stock with the few of data centre customers.
So soon we will. I think we will close one deal in this data centre; the product is already tested. We have given a demo to one of our big data centre customers. So, I think we'll close the deal.
Okay? And what kind of revenue are we looking at from this kind of business? Say, in next 2, 3 years.
So, in Data centre, I think next 2-3 years we'll at least we have a target of around 5 to 10 yearly and with the growth of data centres are increasing with a growth of around 10 to 20%.
Okay, yeah, yeah. Okay, thank you, sir, and all the best for the future.
Thank you, sir.
We'll take the next question from Mr. Satish.
Good evening.
Yes, good evening.
So, I'll start with the request first. Sir, on the communication part, will it be possible to give quarterly updates any progress from your end?
Satish. You want quarterly updates. So, you can write a mail to info, and you will get all the quarterly updates as well.
Okay, okay, I'll try doing. Thank you. I have. Yeah.
Yeah, yeah, tell me, tell me.
Yeah, I have 2 questions very quick questions. Firstly, thanks for giving.
Quarterly update complete answer I have not given. I thought you were asking. So, in this we are not giving any quarterly updates. You can write a mail on info@olatex.com, and take it. But, as we have said in the last call, also in H1, that we will try to do quarterly updates also, not the results, but quarterly updates from this year. So, we will try to do it, if possible, from Q1 itself. Otherwise, from Q2, Q3, Q4, we will give some updates on revenue PAT, all those things we will give. Okay, so this is in our plan, but this is not under compliance, so we will try to do. If we can do it, we'll do it.
Absolutely, sir, it is. That's what I started with the request. So that answer satisfies 2 quick questions, Mr. One is thanks for giving the clear-cut guidance for FY26. So, on the PAT margins you said that we have to take on the Consolidated basis, because PAT margins were different. Right? And I understood the rationale behind this thing. So as per my calculation, it comes to 20.2. And so, can we? I don't want to say that. Okay, we should be taking 20.2 exactly. But can we assume something near to that? I'm just repeating the earlier question.
So, we cannot say that we will do 20.2 or 20.4 or 19.8. Whatever will come will come. But 20% is the PAT margin that we always wish to achieve, and that is our benchmark that we have to achieve, that if the business on lower margin side is going on a higher side. We'll try to reduce that business, but keep the PAT margins at 20%.
Thank you, sir, thank you. And the last question is, do you see anything on the FY27 on your targets?
FY27. See normal targets for any year. If you will ask, I will tell 20 to 30% growth on the last year.
But from the last 4 years you are seeing the kind of growth we are trying to achieve so similar kind of growth, we can say, but as of now, when we can give the number. So as on date today, when we are talking, we have an order book of 35 crores. So, which is already there in our hand, and which will happen in this year. Okay, so that is why we can easily give the numbers of 50 to 60 crores. So, for 27, we don't have that order book in hand, because Business comes on an annual basis and enterprise, business and software business come as and when, or some recurring business is there. But what I feel is that FY27, also 50 crores are minimum, that we will do.
So, Thanks for this honest answer, sir. One last question, if you permit.
Hmm.
Any competition that you, see? Yes, definitely, there would be some competition in the market. But any pressure that you face.
We don't have any competitor in the market.
Okay. Okay.
And the reason behind that is because all the other competitors who have similar kind of product lines, they are too small and the other kind of computer that we have. They are too big. So, too big, will not be able to compete with us because their pricing and their way of working is different. So, our competitor is Cisco is also our competitor. Nokia is also our competitor. Okay, so they also have the similar product that we have few products. So, they are those kinds of companies that they are too big to see us. And there are around 50 60 companies, which are maybe 100 companies which are like in kind of in the products or in AMC Business.
But they are so smaller. Their way of working is like doing proprietorship, farm business, so they are also not our competitor. So as of now, I don't see that competition is going to harm us.
Alright, sir, all right. So, thank you for this transparency, sir. Good luck, and good luck for entire
Thank you.
FY26.
Yes, thank you.
We'll take the next question from Mr. Rakesh.
Hi! Amit, Seth, how are you doing?
Yeah. Hi, Rakeshji, good evening. I'm good. How are you?
Good. Good! Thank you. I have just one question what is the likely growth scenario for ex- execution service? And what is the likely margins in that you provided for FY26. But going forward FY27 and 28. What is the growth scenario?
So, see whatever numbers we are, whatever numbers we are giving those numbers are very conservative. Keeping in mind that India, China relationship is not in a good condition, and I don't see, and I don't wish that it should improve. Okay, but in case it improves, these numbers will go 5-fold to tenfold, and if it does not improve, we will try to find out a different way of doing business. But in exclusion, business 20- 30 cloud business is very easy because their product is very strong. Their product is very good. It is a global level kind of a product, and every company wants to take it. But because of this India China issue, they don't buy it. Okay. So, numbers can be very good in this. But currently, because of whatever scenario the numbers we are also taking in the relative numbers.
Okay? And what is the monthly margins in that.
Margins not more than 15 to 20%.
We will tell them.
In, the.
Is it relevant? Right?
Sorry I could not hear.
It's in the EBITDA level, 15%.
EBITDA level. Yes, 10 to 15%.
Thank you.
Gross profit. I was telling 15 to 20.
Okay, we'll take the next question from Mr. Sandip.
Oh, so we have a few questions. Okay, we'll take his question first.
That would be good. Oh, hello!
So, Sandip, sir, you're audible.
Yeah, so good of good evening, sir. Congratulations for the good set of numbers we have posted.
So, sir, I have 2 questions few questions. Okay, 1st is related to customer concentration. So, like you have mentioned, we have few customers like BSNL, Paytm, other, etc. So, what percentage of revenue comes from this? Customers? I mean from the top 5 clients. How much of revenue is coming? Has there any major contract which has ended or pause recently.
Okay, so good evening, Sandeep. Ji, if you see maximum business in the last year, 21 crores or 2421 crore, 42 lakhs. Whatever we have achieved in that maximum business. The biggest order, I think, is biggest invoicing that we have done is around 2 crores invoicing. Okay, that is on the very low margin business.
So that business we normally don't do other business are maximum, one crore, 2 crores, 1.5 crores 50 lakhs.
So those kind of business does not affect much, even if they the contract stops and Paytm and just dial. They have been our customers from after the corona days, and they have been renewing and increasing business on yearly basis. So, they are not only using us as their partner for this business. They are. They have others also. So, HP is there. Dell is there? Big Vendors are also there, and we are there, and maybe some small vendors are also there in some of the companies. So, they don't give 100% to us. They give some 5%, 10%, 20% to us, some 20% to HP, 20% to dell like that, or maybe some other big company or a small company. So, any contract if it ends that will not going to. That is not going to impact the overall business of Olatech as of now, the biggest order that we have received. Detailed date is of last whatever we have disclosed.
So that is the biggest order. But that is also spread over a 10-year time frame. Okay, BSNL. When their 1st order came, their order value was 7 and a half crores but then invoicing is done in one year, and then some of the parties of AMC. So that is done in remaining 5, 6 years. So that is how it happens. So, there is nothing which is changing because of any customer coming or going, or being there. But we try to keep all the customers, because customers have to be there. Then only if we keep on increasing the customer and keep on getting more business. So that is why we try that. We retain all the customers.
Okay, so, sir, any rough idea, like, how much? Revenue is coming from the top 5-7 Customers.
Top 5 customers revenue. If you see last year, it will be some 5 6 rows.
Okay. Cool.
It's 7 codes.
Okay, thank you. And, sir, my next question is related to receivables. So, we have seen, like receivables, have more than doubled from the last year to.
What is doubled.
Or 10 receivers.
Trade results. Yes.
Yes, it has doubled to 6 and a half crores. These are now over like 110 days.
So, the specific steps are you taking to bring disabled under control? That's what I'm saying, because in the last month we have received order which we have executed. That order value was around 1.9 1 crores. That payment came in the next month. So, that is why this trade receivables. You see, it has increased, and the other thing is, last year our business was 15 crores. Now it has 21. It has become 21 crores. So, 1.5 times so trade receivables has to increase approximately, I'm saying. And then this 2 crores order was there.
So that is how this has. This has happened. So, in the March month. Only, if you see we have done the invoicing of some. I don't remember 5 crores approximately so. Those payments will come in April-May. Already some payments have come, 50% remaining is coming. So, the only way to improve this is that we take the orders before. We don't take much. We don't do much invoicing, so then these days will reduce.
Okay. Cool. Okay. Thank you, sir.
Yep.
We'll take the next question from Mr. Shubham Gupta.
These are the basically, why are you moving from high margin software business to hardware business, low margin.
We are not moving from high margin to low margin. We are doing low margin. We are doing high margin business as we were doing. We have also started low margin business.
Okay? So, it is not that we are moving away from there. We are doing that, and we will also do a high, low margin business, because turnover is also something which is required in the long-term, because turnover gives us the credentials, eligibility, and other things for doing business and getting approved in the tenders.
Okay. Okay. Sir. Thank you.
Sir, we have a few questions in the Q. And A tab. Can you please take those questions.
I'm just reading out the questions. Okay? So, I think we have question on ULMS earning central of e-commerce. How much is the revenue potential in reach.
I have a question, but let's a Q&A.
Yeah.
Okay. Unified log management system earnings, internal log correlation, e-commerce total. How much is the revenue potential in each as per your vision? So, there are so many things we keep on developing and unified log management system. We have developed for a customer which has gone back, which has given the order, and then they have. They were not sure, so means they have confirmed, but then they have not given the order. But then we have been able to sell it in a different customer. And now, in the big order
that we have received there also, this unified log management system is going. So, these are some products which are stable products which are requirement of the industry. So, this, if today it has not happened, it will happen in future. Similarly, earning is all influencer marketing business that I said that they are the future.
Last year the business was 0. This year we are expecting at least 5 6 crore business from influencer marketing.
Next year we are expecting 10 crores from influencer marketing, unified log management system. We are expecting one crore, 2 crore business regularly on yearly basis. Unified log management and centre log are part of each other. So, they are overall. Both these products are means they go together. So, there we are, saying, one to 2 crores, approximately e-commerce portal that we have developed. It is just for the sake of ease of the customers and also in future, if we will plan to take it to the market and take other vendors as well, then we will see for revenue. Currently, we don't have much plans for e-commerce portal, but other 3 4, all of them are already in revenue stage, and we will see growth in the next year numbers. I have already told what is the likely growth scenario for exclusion, server, and what is the likely margin that we have already answered?
What? What is the likely growth in revenue we can achieve in FY26. That is already answered. We feel that we will be able to do 50 crores turnover with 20% pipe margins. Okay, this is not a commitment, but this is the guidance, as per the current order book and the business that we are seeing. And the current order book that we have in hand is 35 crores. So, we don't see 50 crores is much of a challenge, because we have 10 months in hand regarding the PAT margins PAT margins, we see that it should be maintained at 20%. We will try to increase it also. But let's see revenue guidance for FY26 and margins. We have already answered Sandip.
Sony inventory, which was 0 for years has suddenly grown. Yeah. So, Sandip soniji, this answer I have already answered in the last H1 also I will explain it again. So, till Covid, before Covid, we were only a software company, and we were doing some system integration business wherein we were purchasing products from other companies and selling it to some other customer. Okay? So, during the Covid period, we have developed some more software and we became a more stable software product company. After Covid, we have started hardware support business unit as a vertical immediately after 2, 3 months, and then, after 6, 7 months, we started the enterprise business or digital marketing business. So the hardware business. What we do. The MC business that has started from 2022 means 3rd quarter. You can say so from there only we have. We are seeing business in that, and for that we need to maintain the in spare parts. So, suppose just dial has given us an order to maintain the server’s storage, which is router firewall, whatever they have given. So, for that this is the mean time to repair, and mean time, between failure, we manage some inventory. So now that inventory we have purchased, and that inventory is there in our stock and now that order has again been renewed in next year, along with some additional order, so we purchase more inventory, and that existing inventory we keep, because we have not purchased the inventory to sell to somebody. We have purchased the inventory to repair for the repair and return of the spare parts, so there are so many things which go down, wherein we purchase again, and then we repair, and then we, whatever new inventory is required we purchase again. So that is why, from years this inventory there was no inventory, because software company does not have any inventory. And now, because we are doing hardware support business for AMC. Business inventory is required.
So that is why we have the inventory and the business from 0. It has increased to this year. Numbers were there. I don't know. What is the number? Some 14-15 crore is there? Namee? Can you? Pull up that slide in which we have number for hardware support, business unit.
Yeah.
So, you see, the number is 15.23 crores, right? So, from 0 to 15.23 crores, we are managing an inventory of 2 and a half crores. I think this. This answers your question. Okay, 1 last question, while PAT has grown well, cash flow from operations is unclear. Can you share how much of your FY24. PAT was converted to operating cash flow and upcoming cashflow Trend? Thank you for your patience. You are welcome, sir.
So, while PAT has grown well, cash flow from operations is unclear. This, sir, your question is itself, is little bit unclear, because whatever is there it is, there in the balance sheet. Cash flow is also there in the balance sheet. If you still have any question, you can connect us, and we will connect you with our CFO, our CA CS Everybody and he can give you the clear, whatever exactly you want. We you can get it so on the on that. If you see, when we have done one crore profit. After that we have done investment in one company, then we have done 3 profits. Then we have purchased office last year, and then remaining portion. You see capital WIP.
We are developing software also, which is our asset, and now we have done some profit. Again, we are investing some at one or 2 of the companies. So that is how whatever we get as a pat that we invest at least 50%, because for our business extra money is not required because business is organic and the profit itself and business itself sustains the growth, also 100% growth and the business also. So, Sandip Soni, Siddhi, if you can give access to Sandip Soni, because most of the questions I think he has written. Okay. Let's check with him. 528. He has said, Okay.
Sir, just a second. Sandip, so you can ask your question, or, if you, all your questions are solved, just give a clarity.
Oh, yeah, it's clear. No, thank you.
Sandeepji, how's your help?
Sir, I'm from Kolkata.
Kolkata, and are you already invested in Olatech? Or you are planning to invest in Olatech.
No, no! I am already invested.
Already invoked. That's I hope all your questions are answered.
Yes, yes.
And this cash flow from operations is unclear is little bit unclear to me. If you can explain, I can explain it back to you.
No. So now it's clear. Thank you.
Clear. Yeah, thanks a lot.
Yes, indeed.
Okay, as we don't have any further questions, I would now like to invite the management to share the closing remarks.
No, no, I have. I think somebody has a question. One person will be there who has a question.
Has raised their hand.
There was a person called Ankur Gulati. Now he is not there. He has dropped.
Yeah, as of now on my screen. No one has raised her.
Oh, okay.
Taken. Yes. Navneet.
Yeah. So, thank you. Everyone for joining, for giving your time, your valuable time and investing in our company. If you have any questions for us. We are. We'll continue to grow our company
as Amit and I have committed, and if you have any questions, you can drop us a mail. We'll get back to you. Thanks for your investment and thanks for your time.
How much you want to say, anything.
I have one more thing to say now. Still, we have 22 attendees on the on call. So, there are 4 people whom I see in the Benpos means in the shareholding that we receive every week. There are 4 people who have invested from the time of IPO and out of 4, 2 have. They have got 4,000 shares now, 2 of them have 7,400 shares. They have all the shares. They have not sold. 2 people have sold some share, and they have kept some share. I think they have taken out their cost but 4 people are there who have, who have the shares till date also, and the share has gone up to ₹540 from 27 to whatever actual value 1,000. So, their money one lakh ₹8,000, I think, has gone to I don't know how much. Some 30 35 lakhs I have seen. So, those who have they have invested in 2022, August 29th and this has happened 3, 4 months back. Currently, also, whatever value we have. I don't know whether, if you see 7,400 into 250, so it will be around 20 lakhs. So still, it is 20 times.
So, if you have a longer period of longer horizon for investment, and if you can stay definitely, we are trying to make this company a big company and we are trying to grow organically, and we are trying to grow in different fields as well. So now, if you see the as I said that we have got managed services. AMC, Hardware software, all from one customer. Okay? And that is a reputed customer and reputed business that we have got means. It is directly under the eye of Prime Minister. That kind of business is there. So, these things we will try to improve and increase. So, 2023, or 22, and 2023, we have got the biggest order, which was 7 and a half crores. And now we have got the biggest order, which is 45 crores before that the biggest order was, I think some 50 60 lakh rupees. So, the value of the order is also increasing. Total number of customers is also increasing and overall profit, and turnover is also increasing, and the complete management, along with all the senior people, as I have told last time. Also, there are 7 8 people who are very senior, who are involved in the company. Their basic value itself is more than the value of the company. What market cap we have. So, we are trying to take this company to next level every year and every half and every quarter as well. So, thanks a lot for your time. I think we can close it if nobody has a question.
On behalf of Olatech Solutions Limited. We sincerely thank you for your time and continued interest. We appreciate your participation on today's call you may now disconnect. Have a great day ahead.
Thank you. Thank you. Everyone.