i. Venkatraman Srinivasan is the Executive Chairman of the Company and has been the Director of the Company since incorporation in 2008. He has a bachelor’s degree of science in mathematics from the University of Madras. He is an associate member of the Institute of Chartered Accountants of India and Institute of Cost and Works Accountants of India. He is a qualified company secretary from the Institute of Company Secretaries of India. He participated in the Executive Development Programme at Kellogg Graduate School of Management. He is a board member of European Cloud Signature Consortium, Chairman of Asia PKI Consortium and was the Chairman of India PKI Forum. He has over 34 years of experience in the information technology industry and has served as the managing director and chief executive office of ICICI Infotech Limited. He is the author of the book titled “New Age Management Philosophy from Ancient Indian Wisdom” which has been fore worded by K.V. Kamath, ICICI Bank, May 31, 2006. ii. Venu Madhava is a Whole-time Director of the Company, and the Senior Vice -President, Legal. He holds a bachelor’s degree in commerce and a bachelor’s degree in law, both from Kwempu University. He has over 13 years of experience and has worked as as Manager - Legal at Adecco India. iii. The Offer comprises the Fresh Issue and an Offer for Sale. Nandlal Laxminarayan Sarda is an Independent Director of the Company. He holds a master’s degree in technology in electrical engineering from Indian Institute of Technology, Bombay. He has doctor of philosophy degree from Indian Institute of Technology, Bombay. He has previously served as the dean of academic programmes, IIT Bombay for almost two years in which his role he coordinated with the Society for Innovation and Entrepreneurship (SINE). He is presently serving on the board of Cybertech Systems and Software Limited.

1. Balance Sheet

Particulars(Cr)	FY22 (Dec 21)	FY21	FY20	FY19
Long-term Assets	158	146	105	84
PPE	66	65	15	15
Right-of-Use Assets	12	13
Capital work-in-progress	21	4	40	21
Intangible	48	40	42	46
Goodwill	2	5	5
Investments		13	0	0
Other long-term Assets	8	3	2	1
Short-Term Assets	95	45	53	34
Cash & Cash Equivalents	13	7	9	2
Inventory	2	0.0	1	0.0
Investments		0.06	0.10
Trade-receivables	53	14	23	21
Loan	3	3	3	3
Other Assets	23	18	16	8
Total Assets	254	191	158	119
Total Equity	141	116	93	75
Equity Capital	35	35	35	35
Other Equity	105	72	57	40
Non-controlling interests	1.02	9.25	0.93
Long-term Liabilities	37	40	30	22
Borrowings	22	22	26	18
Lease Liabilities	11	12
Deferred tax Liabilities	0.00	0.0	0.00	0.00
Provision	2	3	2	1
Other Long-term Liabilities	0.60	1	1	1
Short-Term Liabilities	110	84	75	66
Borrowings	22	8	12	7
Lease Liabilities	2	2
Dues to MSMEs	0.0	2	0.0	0.0
Dues to Creditors other than MSMEs	15	1	7	4
Other Financial Liabilities	11	6	4	2
Provisions	18	9	6	3
Other Short-term Liabilities	4	3	4	3
Total Equity and Liabilities	254	191	158	119

2. Profit & Loss Statement

Particulars(Cr)	9MFY22	FY21	FY20	FY19
Revenue	137	131	116	101
% Growth	4.29%	13.00%	14.64%
Other Income	1	0	0.0	0.00
Total Revenue	138	132	116	101
% Growth	4.42%	13.41%	14.86%
Total Expenses	101	101	93	78
Cost	33	31	37	31
% of Sales	24.74%	24.01%	32.43%	31.01%
Gross profit	104	101	79	70
% Gross Margin	75.44%	76.14%	67.67%	69.02%
Employees Expenses	34	41	29	25
% of Revenue	25.23%	31.49%	25.01%	25.42%
Other Expenses	19	18	17	12
% of Revenue	13.79%	13.84%	15.00%	11.80%
Operating Profit	50	40	32	32
Operating Profit Margins	36.42%	30.81%	27.66%	31.80%
Depreciation	10	8	8	8
% of PPE	15.38%	13.33%	57.33%	56.52%
Finance Cost	3	0.0	0.0	0.0
PBT	36	31	23	21
Tax	6.40	5.82	4.60	4.21
% of Tax	17.44%	18.65%	19.97%	19.41%
PAT	30	25	18	17
Net Profit Margins	21.91%	19.17%	15.79%	17.19%
EPS (in Rs.)	4.36	2.49	2.37	2.48

3. Cash Flow Statement

Cash-Flow from Operations (Cr)	9MFY22	FY21	FY20	FY19
PBT	36	31	23	21
Depreciation	10	8	8	8
Working Capital Changes	-26	5	-4	-10
Change in other current assets and non-current Assets	-5	-3	-9	-2
Change in Loans	-0.00	0.00	0.00	0.00
Change in Trade Receivables	-38	8	-2	-15
Change in Inventory	-1	0.0	-1.00	0.00
Change in other current financial liability	5	2	2	0.0
Change in other current and non-current liability	-0.0	-0.0	0.0	2
Change in non-current and current provision	1	1	3	0.0
Change in tarde payable	12	-4	3	2
Cash generated from operations	21	44	27	19
Taxes Paid	0.69	-3	-4	-3
Net cash flow from operating activities	21	40	23	16
Cash-Flow from Investment	9MFY22	FY21	FY20	FY19
Purchase of PPE	-16	-18	-19	-18
Purchase of intangible assets	-17	-2	-3	-19
Investments in mutual funds	13	13	0	0
Movement in minority interest	-7	0.0	-0.00	0
Interest received	0.0	0.00	0.00	0.00
Net cash from investing activities	-30	-19	-28	-32
Cash-Flow from Financing	9MFY22	FY21	FY20	FY19
Proceeds from short term borrowing	13	-3	4	2
Proceeds from long term borrowing	0.0	-4.0	7.00	7.00
Movement of OCI	0.0	-0.00	0.00	-0.00
Proceeds from security premium	-0.00	0	0.00	0
Foreign exchange movement on consolidation	2	-1	0.0	0.00
Payment of preference dividend	-0.0	-0.00	-0.00	-0.00
Payment towards principal portion of lease liability	-1	15	0	0
Interest paid on lease liabilities	-1	-0.0	0	0
Net cash from Financing activities	13	4	12	10

4. Ratio Analysis (i) Balance Sheet Ratio Analysis :

Particulars	9MFY22	FY21	FY20	FY19
Debt/Equity	0.21	0.23	0.31	0.26
Debtor Days	142	41	73	77
Current Ratio	1.27	1.32	1.53	1.67

(ii) P&L Ratio Analysis :

Particulars	9MFY22	FY21	FY20	FY19
Return of Equity	21.41%	21.77%	19.81%	23.11%
Return on Capital Employed	-	16.00%	14.00%	18.00%
OPM	36.42%	30.81%	27.66%	31.80%
NPM	21.91%	19.17%	15.79%	17.19%

(iii) Cash Flow Ratio Analysis :

Particulars	9MFY22	FY21	FY20	FY19
CFO/EBITDA	42.09%	100.42%	72.00%	52.15%
Free Cash Flow	-0.62	20.06	0.39	-21.58
Free Cash Flow/Debt	-0.01	0.65	0.01	-0.81

5. Revenue Profile

	FY21		FY20		FY19
	in Rs.Crores	% of total	in Rs.Crores	% of total	in Rs.Crores	% of total
International	25.48	19.36	14.6	12.54	10.2	10.04
Domestic	106.11	80.64	101.85	87.46	91.38	89.96
Total	131.59	100	116.45	100	101.58	100

  6. Shareholding Pattern

Category	No.of Shares	% of holding
Promoters and Promoter Group	5,68,43,956	79.19%
Public	88,81,552	12.37%
Share held by employee trusts	60,57,801	8.44%
Total	7,17,83,309	100.00%

 

As per DRHP, there is no peer in the listed market.

Review and Recommendation of E-mudra Limited IPO by InvestorZone is 5/10 1. Revenue has increased from 100 Crores in FY19 to 180 Crores in FY22(E). So, revenue is almost doubled in the last 4 years. 2. Profit has increased from 17 Crores in FY19 to 40 Crores in FY22(E). This is excellent growth in the PAT. 3. E-Mudra was generating good cash from operations till 2021 but in the first 9MFY22, trade receivables has gone up 14 Crores in FY19 to 52 Crores in 9MFY22. This has caused reduction of conversion of EBITDA into cash. 4. The future looks good as many government projects are coming in Digital India initiative which will present excellent opportunity for E-mudra. 5. Asking P/E is ~48x which means nothing has left on the table.

eMudhra Limited Sai Arcade, 3rd Floor, No. 56 Outer Ring Road, Devarabeesanahalli, Bengaluru 560103, Phone: 080-4227 5300 Email: companysecretary@emudhra.com Website: https://www.emudhra.com/index.jsp