(i) Aricent Technologies (Holdings) Limited is a step-down subsidiary of Aricent (formerly known as the “Aricent Group”). Aricent is a leading global engineering services and software company, with specialized expertise in the communications, semiconductors and software market segments.
(ii) The Company provides outsourced product development, product support services, and licensable software frameworks and solutions. Aricent’s service offerings provide a comprehensive product lifecycle of services for communications networks, as well as connected devices, applications, and mobile services.
This software is in areas that include: 4G Long Term Evolution, G, Multimedia, Software Defined Networks, Mobile Edge Computing, Switching Routing solutions, Network Functions Virtualization, Self Organizing Networks, Machine-to-Machine, WiFi, Cloud, SmartGrid and Internet of Things.
(ii) The Company provides outsourced product development, product support services, and licensable software frameworks and solutions. Aricent’s service offerings provide a comprehensive product lifecycle of services for communications networks, as well as connected devices, applications, and mobile services.
This software is in areas that include: 4G Long Term Evolution, G, Multimedia, Software Defined Networks, Mobile Edge Computing, Switching Routing solutions, Network Functions Virtualization, Self Organizing Networks, Machine-to-Machine, WiFi, Cloud, SmartGrid and Internet of Things.
Aricent Technologies (Holdings) Limited is focusing on the following five service lines:
- Communications
- Semiconductors and Industrial
- Enterprise Software and Consumers
- Product Service and Support
- Innovation
(iii) Aricent Technologies Private Limited (ATPL ) is the only subsidiary of the company as on 31.03.2019. It holds 100% shares in the company.
Aricent Technologies (Holdings) Limited Unlisted Shares Details:
| Total Available Shares: | Not Available |
| Face Value: | ₹ 10 Per Equity Share |
| ISIN: | INE272101010 |
| Lot Size: | 50 Shares |
| Current Unlisted Share Price: | ₹ 575 Per Equity Share |
Shareholding Pattern:
Shareholding pattern as on 31.03.2020
| Shareholder Name(Promoters) | No of shares | % of total shares | % of shares pledged |
|---|---|---|---|
| Aricent Holdings Mauritius India Ltd | 2,34,76,578 | 17.89 | 17.89 |
| Aricent Holding | 10,54,29,478 | 80.36 | 80.36 |
Financials of Aricent Technologies (Holdings) Limited Unlisted Shares:
(Figures in Millions)
| Year | Revenue | EBITDA | EBITDA Margins | PAT | PAT Margins | Equity | FV | EPS |
|---|---|---|---|---|---|---|---|---|
| 2016 | 21106 | 4331 | 20.52% | 1920 | 9.1% | 1312 | 10 | 14.63 |
| 2017 | 20965 | 4442 | 21.19% | 2023 | 9.6% | 1312 | 10 | 15.41 |
| 2018 | 21885 | 4500 | 20.56% | 2043 | 9.3% | 1312 | 10 | 15.57 |
| 2019 | 22764 | 4182 | 18.37% | 2046 | 9.0% | 1312 | 10 | 15.59 |
| 2020 | 25409 | 5077 | 19.99% | 7027 | 13.27% | 1312 | 10 | 54.00 |
| 2021 | 26100 | 4662 | 17.86% | 1960 | 7.51% | 1312 | 10 | 15.00 |
FY19-20 Analysis
- The company has shown a growth of 11.61% in the FY19-20 as compared to last year.
- The EBITDA margins have improved from 18.37% to 19.99% as compared to last year.
- The PAT for FY19-20 is 702 Crores as compared to mere 204 Crores last year. This has nothing to do with any operational excellence but it has increased due to the addition of deferred tax amounting 354 Crores this year.
- The company has generated 150 Crores of positive cash flows from operation in FY19-20.
- The company is debt-free.
Comparison With Peers:
The company is an IT Solutions provider, so its nearest peers can be taken as Infosys and Wipro. The Price of Infosys and Wipro is taken on 31.08.2019 for comparison.
| Particulars | Infosys | Wipro | Aricent |
|---|---|---|---|
| P/E | 22 | 16.56 | 12 |
| P/B | 5.44 | 2.71 | 1.39 |
| Mcap(cr) | 3,49,874 | 1,53,509 | 2361 |
Conclusion: If we give a P/E of 15 to Aricent Technologies, the fair value should be above 200.
Annual Report 2020-21
Annual Report 2019-20
Annual Report 2018-19
Annual Report 2016-17
Company Address:
5 Jain Mandir Marg (Annexe),
Connaught Place,
New Delhi 110007, India
Tel: 011-23747336
Email Id: info@aricent.com
Website: www.aricent.com
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