Digispice Technologies Ltd Q4 FY22 Earnings Conference Call Insights

Key highlights from Digispice Technologies Ltd (DIGISPICE) Q4 FY22 Earnings Concall

Q&A Highlights:

• Ramil Gogna asked about indirect cost, which has been increased exceptionally from last year to this year. Rajneesh Arora Co-Founder said these are costs that are primarily incurred for employees, call center, technology, and marketing. A significant portion of this cost is largely related to employees.

• Vishnu Dhawan asked about the reason for amount for plant, property, equipment increase from INR381 lakh to INR1,272 lakh. Vinit Kishore CFO replied that both in Digispice, the business telco enterprise, the company has been investing largely both in machines, software and hardware. So all these investments have gone to the increase in amount.

• Vishnu Dhawan also asked that while the company’s sales have increased a lot, the bottom line is still not increasing in the same ratio. Vinit Kishore CFO answered that since last year the company has been investing and that’s the reason why bottom line is not in the same ratio as the topline growth. But the results should see a swap going forward.

• Vishnu Dhawan asked about the guidance on PAT for FY23. Vinit Kishore CFO replied that as a policy, the company does not give guidance.

• Vishnu Dhawan asked if the promoters are drawing any salary or perks from the parents or subsidiary company.  Vinit Kishore CFO replied promoters are not drawing any remuneration.

• Saket Kapoor asked about the scale at which the company can grow given the current environment. Rajneesh Arora Co-Founder replied that in the company’s understanding of the business, for the next 5 years, it is not seeing any threat to the business momentum. The company added that it will continue to grow the way it has been growing across all the services.

• Saket Kapoor asked about the other income components and why it’s lumpy in nature. Vivek Venkatesan CFO Spice Money said a larger part of other income is actually operating income which is the interest income that is earned on prepaid balances kept with Spice Money. It gets accounted in other income, but it’s part of the business.

• Laveena Jagwani of Electrum Capital asked about the presence and reach of adhikaris in terms of how many districts are available and what’s the visibility. Sanjeev Kumar CEO Spice Money said the company is present across 700 districts today, over about 18,000 pin codes. Of the rural pin codes, which is about 7,500, the company is present in 7,200.  DIGISPICE also cover about 212,000 villages today.