“At the core of our proficiency lies the provisioning of Cloud-based SAP digitalized solutions and Esri ArcGIS Enterprise platforms. We merge our expertise in cloud technologies with a deep understanding of our clients’ business requirements. In addition, our spatial analytics solutions leverage digitalization advantages by combining maps with enterprise data. Our partnership with SAP has contributed significantly to our new business from SAP S/4HANA cloud migrations, which is our primary focus as more enterprises expedite their journey to the cloud. We also take pride in our Managed ArcGIS Cloud Services practice, which is best-in-class and continuously strengthened by talent acquisition and an unwavering focus on client requirements.”
– Mr. Vish Tadimety, CEO and Founder, CyberTech on Q4FY23 Results
| Stock Data | |
| Ticker | CYBERTECH |
| Exchange | NSE |
| Industry | TECHNOLOGY |
| Price Performance | |
| Last 5 Days | -13.05% |
| YTD | +3.06% |
| Last 12 Months | +3.09% |
*As of 30.06.2023
Company Description:
CyberTech is an expert in Enterprise Cloud Transformation, offering cloud-based SAP digitalized solutions and Esri ArcGIS Enterprise platforms. They help clients optimize their business processes by leveraging SAP S/4HANA, resulting in improved customer experience, real-time insights, and increased productivity. CyberTech’s spatial analytics solutions integrate maps with enterprise data, delivering digitalization benefits. As a trusted partner for global enterprise Cloud transformations, they have strategic relationships with Cisco, Microsoft, ESRI, and SAP. These alliances enable CyberTech to provide comprehensive solutions, leveraging cutting-edge technologies.
Financial Performance:
CyberTech Systems and Software Limited reported Total Income for Q4 FY23 of ₹56.28 Crore up from ₹37.10 Crore year on year, a growth of 51.7%. Consolidated Net Profit of ₹5.35 Crore, up 4.8% from ₹5.11 Crore in the same quarter of the previous year. The Earnings per Share is ₹1.88 in this quarter.
Key Strengths:
- Strong Revenue Growth: CyberTech experienced significant revenue growth, with a 24% increase compared to the previous year. This indicates the company’s ability to generate substantial business and deliver value to its clients.
- Expertise in Cloud Transformation: CyberTech’s core strength lies in its proficiency in cloud transformation. They specialize in providing cloud-based SAP digitalized solutions and Esri ArcGIS Enterprise platforms, enabling clients to leverage the benefits of cloud technologies effectively.
- Strategic Partnership with SAP: Company’s partnership with SAP has played a significant role in attracting new business, particularly in SAP S/4HANA cloud migrations. This partnership demonstrates the company’s credibility and ability to deliver solutions aligned with SAP’s offerings.
- Spatial Analytics Solutions: Company’s spatial analytics solutions, which integrate maps with enterprise data, offer digitization advantages. This capability allows clients to gain insights and make data-driven decisions, providing them with a competitive edge.
- Focus on Client Requirements: The company emphasizes a deep understanding of their clients’ business requirements. By tailoring their solutions to meet specific client needs, they ensure customer satisfaction and foster long-term partnerships.
- Strong Market Presence: The company has a strong market presence, particularly in the US, where it contributes 99% of the company’s operating revenue. Their success in the technology sector and a growing client base further solidify their position in the market.
- Comprehensive Offerings: The company offers a comprehensive range of solutions, including SAP S/4HANA and SAP Cloud Offerings, Managed ArcGIS Cloud Services, and Spatialytics Cloud Software Solutions. This diverse portfolio allows them to cater to a wide range of client needs and positions them as a one-stop solution provider for enterprise cloud transformations.
- Skilled Workforce and Development Center: With 586 employees and a state-of-the-art development center in Thane, CyberTech possesses a skilled workforce and the infrastructure necessary to deliver high-quality services. Their talented team enables them to stay at the forefront of technological advancements and meet client demands effectively.
Future Outlook & Growth Prospects:
“Spatialitics’ flagship product for law enforcement agencies, GeoShield Real-Time, continues to gain traction, with several new law enforcement agencies, including a consortium of agencies within the same geographical area, added to our customer group this year. Moreover, several US law agency consortiums are showing definitive interest in acquiring GeoShield.”
– Mr. Vish Tadimety, CEO and Founder on Q4FY23 Results
- Market Dynamics: The IT industry continues to experience rapid advancements and transformations. Cybertech’s ability to adapt to changing market dynamics, stay abreast of emerging technologies, and offer innovative solutions will positively impact its future growth potential.
- Global Expansion: Exploring opportunities for global expansion and tapping into international markets can fuel Cybertech’s growth. Expanding its presence beyond India can lead to increased market reach and diversification. CyberTech is taking steps in the right direction with GeoShield that is gaining interest in the US market.
- Technological Advancements: Keeping pace with technological advancements and investing in research and development will be crucial for Cybertech’s growth. CyberTech’s expertise in cloud security already places it at a better place to benefit from modern technologies like cloud computing.
Key Risks:
“The world has seen an unprecedented competition for talent as well as significant wage inflation in the last year. This has directly led to an increase in our payroll cost. Despite headwinds from higher payroll costs, which resulted in flat net income compared to the previous year, we are confident in our ability to navigate current challenges and continue to deliver long-term value for our shareholders. To improve profitability in the coming quarters, we are implementing measures to increase operational efficiency and explore cost-saving initiatives.”
– Mr. Vish Tadimety, CEO and Founder on Q4FY23 Results
- Talent Acquisition and Retention: The availability of skilled IT professionals is crucial for Cybertech’s success. The risk of attracting and retaining top talent, especially in a competitive job market, can impact the company’s ability to deliver high-quality services and innovate effectively.
- Economic Factors: Economic fluctuations, both at the global and domestic levels, can influence the demand for IT services. During periods of economic downturns or recessions, clients may reduce their IT budgets, delay projects, or prioritize cost-cutting measures. Such economic challenges can affect Cybertech’s revenue and profitability.