Shailesh Kumar Damani, aged 57 years is the Promoter, Chairman and Managing Director on the Board of the Company. He holds a Higher Secondary School (HSC) Certificate from Maharashtra State Board of Secondary and Higher Secondary Education, Pune, Maharashtra. He has been associated as the Director of the Company, since inception and has more than 18 years of experience in Textile Industry and was looking after entire Sales Department of Family Business and thereafter since 2006 he has been into placement and data entry and started Merchant acquiring Business. Anil Mahendra Kotak, aged 54 years, is the Promoter, Whole Time Director & Chief Financial Officer of the Company. He holds a Bachelor of Commerce (B.Com.) Degree from University of Mumbai. He has been associated as a director of the Company since April, 2012. He has been appointed as Chief Financial Officer with effect from April 12, 2023 & later on he was appointed as Whole Time Director with effect from May 12, 2023 and accordingly re-designated as Whole-Time Director & Chief Financial Officer with effect from May 12, 2023. He has approximately 14 Years of experience in Logistic and relocation industry as Business Development Manager from 2007 to present date. He is responsible for handling the corporate courier and logistic operations in the Company. He also looks after the accounts and finance function of the Company. Prasanna Lohar, aged 44 years is the Non-Executive Independent Director on the Board of the Company. He holds a Bachler of Engineering (B.E.) Degree from Swami Ramanand Teerth Marathwada University, Nanded. He has more than 23 years of experience in the industry of Engineering and Development, Business Process Management, E-Commerce, Payments, etc. He has been associated with the Company as Non-Executive Independent Director since April 12, 2023.

Particulars ( In Lakhs )	2021	2022	2023
Revenue from Operations	4,455	4,878	6,217
Other Income	6	10	58
Total Revenue	4,461	4,887	6,275
Services Cost	24	76	21
Cost of material consumed	0	1	7
Employee benefits expenses	3,342	3,221	4,538
Other Expenses	738	1,155	1,196
EBITDA	357	435	513
Depreciation & Amortisation	30	21	14
Finance Cost	234	268	234
EBIT	327	414	499
OPM (%)	8.00%	8.89%	8.18%
PBT	94	145	265
Tax	-27	-35	-31
PAT	67	110	234
NPM (%)	1.50%	2.25%	3.73%
No.of Shares	85.74	85.74	85.74
EPS	0.77	1.28	2.72

 

Name of the Company	Revenue (In Crore)	PAT (In Crore)	EPS ( in Rs)	P/E	CMP	Mcap (In Crore)
Plada Infotech Services Limited	62	2	2.72	17.6	48	41
Firstsource Solutions Limited	6,022	514	7.33	20.8	164	11,529
Eclerx Services Limited	2,648	489	99.71	17.8	1,803	8,825

* All the data is as per FY23.

Review and Recommendation of Plada Infotech Services Limited by IZ team is 3/10 Plada Infotech Services, a provider of call center services, operates within a multifaceted business model. Company offer a wide array of services such as account management, recruitment, training, onboarding, relationship management, performance monitoring, risk management, cross-selling, and customer support. These services are not limited to just inbound or outbound calls; they extend to digital channels like email, chat, and social media.

Challenges in This Sector

1. High Turnover Rate: The call center industry is known for high employee turnover, which results in additional costs for recruitment and training. 2. Customer Expectations: In today's digital age, customer expectations are ever-changing, forcing companies to continuously update their strategies and technologies. 3. Data Security: Handling personal and financial information poses a significant data security risk. 4. Technological Challenges: With the advent of AI and automation, traditional call center roles are evolving, requiring companies to invest in these technologies. 5. Regulatory Compliance: Adhering to the laws and regulations of different countries is a challenge, especially if you provide global services. 6. Quality Assurance: Maintaining high-quality customer service is a considerable challenge, especially when operating across multiple channels and geographies.

Business Offering

1. Merchant Acquisition for Banks: They specialize in guiding banks on Point-of-Sale (POS) systems, payment gateways, and other payment processing technologies. Additionally, they also handle Know Your Customer (KYC) procedures. Their clientele is predominantly banks, financial institutions, and payment aggregators. 2. On-Field Support: Once a merchant is onboarded, Plada offers on-site issue resolution services. This also extends to marketing new banking products and providing training. 3. Account Management: This involves managing the processes and compliances related to merchant acquisition and implementation programs for banks. 4. Payroll Management: Operated through their platform "Kundali," Plada provides end-to-end payroll management services. This includes recruitment, training, and additional HR benefits such as insurance and career guidance.

Financials

1. Revenue in FY23 is distributed as follows: 15% from Merchant Acquisition, 25% from Field Support, 20% from Account Management, and 40% from Recruitment and Payroll Management. 2. The company has shown growth from INR 11 Cr in sales in 2015 to INR 50 Cr in 2020. However, due to the pandemic, there was a dip to INR 44 Cr in 2021, followed by a recovery to INR 48 Cr in FY22 and then INR 64 Cr in FY23.

Market Challenges:

1. Manpower Availability: One of the major challenges is human resource constraints. 2. High Competition: The market is saturated with competitors, and there is a lack of entry barriers.

Valuation:

The IPO size is pegged at INR 12 Cr with a P/E ratio of 17 and a market capitalization of INR 41 Cr.

Conclusion

Given the financial trajectory and current market challenges, the company appears to be facing growth saturation. The valuation seems rather optimistic, especially considering the highly competitive market and modest growth in the past 3-4 years. Investors would do well to exercise caution and conduct thorough due diligence, particularly in scrutinizing the P/E ratio and market capitalization against the backdrop of industry norms and growth potential. The lack of substantial growth post-2020 raises questions about the company's ability to navigate market challenges effectively.

Plada Infotech Services Limited Santosh A. Mishra Compound, Mograpada, Mogra Village, off. Old Nagardas Road Andheri (East), Mumbai - 400069 Phone: +91 8976996702 Email: abhishek.jain@pladainfotech.com Website: https://pladainfotech.com/