eMudhra Limited Q4 FY22 Earnings Conference Call Insights

Key highlights from eMudhra Limited (EMUDHRA) Q4 FY22 Earnings Concall

Q&A Highlights:

Himani Shah – Alchemy Capital – Analyst

• Impact on pricing on EMUDHRA products due to geopolitical factors?

Venkatraman Srinivasan – EC

• There are two segments for pricing; Digital trust and Enterprise.
  • No standard pricing in Enterprise.
    • Depends on size, complexity and number of users.
    • Currently no pricing pressure in this segment.
  • Digital signature also not seeing much pressure.
    • With inflation growing worldwide, the prices should be better.

Sahil Desai – Hornbill Capital – Analyst

• Digital trust revenue breakup between direct retail and channel distribution.

Venkatraman Srinivasan – EC

• Trust services, about INR845.6 million.
  • Direct retail constitutes about 25-30% of total trust service revenue.
  • Enterprise solution, about INR981 million of total sales.

Sahil Desai – Hornbill Capital – Analyst

• Differential between margins for EMUDHRA, from a revenue standpoint, in direct retail vs. channel?

Venkatraman Srinivasan – EC

• In the channel, EMUDHRA may realize an average of around INR300.
• In retail, realized around INR1500 per digital signature.

Sahil Desai – Hornbill Capital – Analyst

• On the enterprise side, based on the order book, what’s the growth visibility for FY23?

Venkatraman Srinivasan – EC

• It’s projected that in India, the enterprise side is slated for a 30% growth.
  • EMUDHRA is striving towards these growth numbers, seeing stable and growing order book.
• Expects the growth to be good for FY23.

Saurabh Thadani – IIFL Securities – Analyst

• Shaping up of pipeline vs. FY22, mainly in the enterprise solution segment?

Venkatraman Srinivasan – EC

• YoY, the pipeline has more than doubled.
• Two to three years back, it would have almost tripled.
• Regarding sales pipeline, not converted to order, it has become more than 1.5 times vs. last year.
• Robust growth in pipeline and order book position.

Saurabh Thadani – IIFL Securities – Analyst

• Average duration of current order pipeline in terms of execution.

Venkatraman Srinivasan – EC

• Generally takes 3-4 months for most of the customers.
• Some bigger orders, govt. orders, takes up to 6 months.

Rishi Jhunjhunwala – IIFL – Analyst

• Revenue visibility for FY23 on the Enterprise solution business?

Venkatraman Srinivasan – EC

• Don’t want to give any specific guidance on revenue visibility.
• The leading indicators are good and EMUDHRA is working towards it.

Himani Shah – Alchemy Capital – Analyst

• Competitive landscape?

Venkatraman Srinivasan – EC

• While EMUDHRA command 38% market share, the next player commands almost 18-19%. And other 2-3 players are commanding 10-15% market share on the digital trust services in India.
• In Enterprise solution, there is almost no local competition.

Sahil Desai – Hornbill Capital – Analyst

• Plans for US market?

Venkatraman Srinivasan – EC

• Two strategies are planned.
  • Recruitment of people.
    • Current count of 1 will be increased to 7-8 people.
  • Enrollment of partners.
    • Partners in similar industry.