INITIATING COVERAGE IntraSoft Technologies Ltd. …reports.choiceindia.com/Reports/FUR010820171038421.pdfPadma Kajaria 9.5% University Of Notre Dame Du Lac 4.98% Washington University

IntraSoft Technologies Ltd. Riding on the e-commerce wave

INITIATING COVERAGE

Relative Capital Market Strength

IntraSoft Technologies Ltd. (ITL) is a multi-channel e-commerce retail platform, with a strong technology backbone that primarily serves the US market. The company sells its products from its own site www.123stores.com. It also has shop-in-shop partnerships with other leading retailers and sells its products on their market places. The company currently sells across 10 different market places including Amazon.com (US), Amazon Canada, eBay.com, Sears.com, New Egg, Rakuten (buy.com), Jet.com, Alibaba’s 11main.com, Bestbuy.com and its own e-commerce site www.123stores.com.

Investment Rationale: (Page: 9-13)

• Robust proprietary technology platform

• Scalable business leading to an operating leverage

• Majority of revenue from Amazon Platform

• Higher business from inventory model too will aid in margin expansion

• New supplier contract will free up capital resulting in a higher operating cash flow

• Continuous improvement in ranking

Risk and Concerns: (Page: 16)

• Seasonal business

• Competition

• Inventory risk

• Foreign currency fluctuation risk

• Shifting of the vendors directly to the marketplaces

Valuation: (Page: 18)

• Going forward, the company is expected to benefit from business scalability coupled with operating leverage gain. Currently it has no liquidity pressure. It is negotiating new sales contract with its vendors, which will ease the pressure on working capital. Additionally, it is cash flow from operations (CFO) and free cash flow positive and with no future major capex requirement and easing working capital, we feel that in future also it will generate enough funds. These funds will be reinvested in the business to generate additional business and profitability. Most of the funds will be used to acquire vendors and expand the inventory model, which is highly profitable as compared to the drop-ship model.

• We estimate ITL’s total operating income to grow at 28.8% CAGR over FY17-19 to Rs. 15,575mn, while EBITDA and PAT to grow at 50.7% and 43.7% CAGR, respectively, over the same period to Rs. 398.6mn and Rs. 284.9mn.

• At the CMP of Rs. 447.8, ITL’s share is trading at TTM EV/Sales multiple of 0.6x as against the peer average of 1x. Additionally, it is trading at an TTM EV/Gross Profit and MCAP/ TTM Sales multiple of 3.2x and 0.7x, respectively, as compared to the peer average of 4.1x and 1x. The company is operationally efficient as compared to its peers and this is demonstrated from its profitability at EBITDA & PAT level and higher fixed asset turnover. Considering the future growth potentials and its positioning among peers in terms of valuation, we feel it is undervalued.

Based on EV/Sales multiple of 0.5x to FY19E sales, we arrive at a target price of Rs. 626.4 per share, translating into a potential gain of 42.6%. Thus we recommend a “BUY” rating on the stock.

Rajnath Yadav | Board line: +91 22 6707 9999; Ext. 912 | [email protected]

1

31st Jul. 2017

Rating Matrix

CMP (Rs.) 439.4

MCAP (Rs. mn) 6,597

Rating BUY

Potential price (Rs.) 626.4

Upside potential 42.6%

52 week H/L (Rs.) 584.4 / 306

Investment horizon 18 Months

Face value (Rs.) 10

Category Small Cap

Sector Internet & Catalogue Retail

Shareholding Pattern as on 30th Jun. 2017

Particulars Sep-16 Dec-16 Mar-17 Jun-17

Promoters 47.52% 47.52% 47.52% 47.52%

FIIs 8.29% 9.83% 9.83% 10.99%

DIIs 0.28% 0.64% 0.18% 1.14%

Non institutions 43.91% 42.01% 42.47% 40.35%

Financial Snapshot (Rs. bn)

Projections FY14 FY15 FY16 FY17 FY18E FY19E

Revenue 1.50 3.43 7.18 9.39 12.24 15.58

EBITDA (0.02) 0.05 0.10 0.18 0.26 0.40

Adjusted PAT 0.02 0.06 0.08 0.14 0.18 0.28

EBITDA (%) -1.2% 1.4% 1.3% 1.9% 2.1% 2.6%

PAT (%) 1.4% 1.7% 1.2% 1.5% 1.5% 1.8%

EPS 1.4 4.0 5.7 9.4 12.5 19.3

BVPS 52.5 54.0 80.1 89.1 99.2 116.1

RoNW (%) 2.7% 7.5% 7.1% 10.5% 12.6% 16.7%

RoCE (%) -7.3% 4.2% 5.3% 10.5% 14.6% 20.4%

P / E 35.2 22.7

P / BVPS 4.4 3.8

EV / Sales 0.5 0.4

BUY

60

80

100

120

28

-Ju

l-1

6

28

-Au

g-1

6

28

-Sep

-16

28

-Oct

-16

28

-No

v-1

6

28

-Dec

-16

28

-Jan

-17

28

-Feb

-17

31

-Mar

-17

30

-Ap

r-1

7

31

-May

-17

30

-Ju

n-1

7

IntraSoft Technologies Ltd. Sensex

2

Management Team

Name Designation Mr. Arvind Kajaria Managing Director

Mr. Sharad Kajaria Whole-time Director

Mr. Rupinder Singh Independent Director

Mr. Anil Agrawal Independent Director

Mrs. Savita Agarwal Independent Director

Mr. Ashok Bhandari Independent Director

Mr. Anil Kumar Bansal Independent Director

Mr. Mohit Kumar Jha Chief Financial Officer

Mr. Pranvesh Tripathi Company Secretary

Shareholding Pattern (as on 31st Dec. 2016)

Source: Choice Broking Research


Shareholders more than 1% (as on 30th Jun. 2017)

Share Holder Name Stake (%) Arvind Kajaria 19.01% Sharad Kajaria 19.01% Padma Kajaria 9.5% University Of Notre Dame Du Lac 4.98% Washington University - Chanakya Capital Partners 3.74% Finotex Vinimoy Pvt. Ltd. 3.39% Nishid Babulal Shah 1.76% Ajitnath Financial Consultants LLP 1.21% Nikhita Nishid Shah 1.19% Lokvani Engineering Pvt. Ltd. 1.12%


47.52%

10.99%

1.14%

40.35%

Promoters FIIs DIIs Non Institutions

3

US E-Commerce Industry:

The United States (US) is a consumer driven economy and hence growth in the personal consumption and GDP moves in tandem. Over the last decade, personal consumption i.e. retail trade increased by 2.2% CAGR over 2006-16, while GDP in absolute term increased by 3% CAGR. The contribution of retail trade in the national GDP stood to an average of 5.9% over the same period.


2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

US GDP (USD tn) 13.9 14.5 14.7 14.4 15.0 15.5 16.2 16.7 17.4 18.0 18.6

Total Retail Trade (USD tn) 0.9 0.9 0.9 0.8 0.9 0.9 0.9 1.0 1.0 1.1 1.1

Contribution from Retail Sector (%) 6.3% 6.1% 5.8% 5.8% 5.8% 5.7% 5.8% 5.8% 5.8% 5.9% 5.9%

The retail industry is defined as an institution mainly engaged in the sales of goods and providing incidental services. US retail industry comprises of standard retail stores and non-store retailers, such as home delivery and online sales. In recent years, the US retail industry has undergone a number of changes; one of which is the continued expansion of online sales. Over 2009-16, offline and online retail sales increased by 4.3% and 15.2% CAGR. The contribution of e-commerce sales increased from 4% in CY09 to 8% in CY16. According to the latest-available Bureau of Economic Analysis statistics, online sales contributed 8.5% to the total retail sales in Q1 CY17. During the same period, online sales (e-commerce) increased almost 3x to the retail sales. E-commerce sales increased by 4.1% Q-o-Q as compared to 1% Q-o-Q rise in the total retail sales. On a Y-o-Y basis, it increased by 14.7% as compared to 5.1% growth in the total retail sales.


US Offline Retail Sales Growth vs. Online Retail Sales Growth

0%

3%

6%

9%

12%

15%

18%

2010 2011 2012 2013 2014 2015 2016

Total Retail Sales Growth (%) Offline Retail Sales Growth (%)

Online Retail Sales Growth (%)

Retail e-commerce allows consumers to buy goods from the seller over the internet. Customers can find their interested products by visiting the website. Most online retailers use shopping cart software. Payment and delivery information are collected using a check out process. Convenience is the major factor driving the overall online shopping market growth. It is easier to navigate through various product categories with the help of search system. Consumers are finding it difficult to visit retail stores during their hectic schedule. E-commerce shopping allows consumers to shop sitting in an office or at home and operate for 24 hours. Also, product delivery is made door-step which eradicates the transportation trouble.

4

US E-Commerce Industry (Contd…):

Presence of large players has made the e-commerce market highly competitive. As a result, online retailers compete in terms of product catalogue, pricing, delivery & payment options, return policies, and discounts & offers. To increase their profit margins and expand their geographic reach, these players are making investments in planning, designing & developing their offerings and acquiring new players. The strong positions of the established retailers and long break-even periods would restrict the entry of new players in the market over the future. With more consumer friendly platforms and the penetration of technology/internet in the populations, e-commerce market is expected to witness a high growth. It is estimated that online sales is expected to contribute around 12.8% to the total retail sales by 2019, as compared to the current contribution of 8%.

Based on the 2015 sales, below is the list of top 25 players in the US e-commerce market:

Top 25 US E-commerce Retailers Company Name E-commerce Sales (USD mn) E-commerce Share in Total Sales (%) Amazon.com 79,286 74.1% Wal-Mart Stores Inc. 13,484 2.8% Apple 12,000 5.1% Staples 10,700 55.5% Macy’s 4,829 17.5% The Home Depot 4,267 5.0% Best Buy 3,780 9.4% QVC 3,722 42.7% Costco Wholesale 3,618 3.1% Nordstrom 2,699 18.9% Target 2,524 3.4% Gap Inc. 2,519 15.6% Williams-Sonoma 2,501 50.7% Kohl’s 2,367 12.4% Sears Holdings 2,057 7.9% Wayfair 1,919 100.0% Walgreens 1,883 1.7% L Brands 1,816 15.4% HSN 1,810 49.2% Groupon 1,747 56.0% Overstock.com 1,648 100.0% Lowe’s 1,636 2.8% Victoria’s Secret (L Brands) 1,485 19.9% Nike 1,410 4.5% Neiman Marcus 1,389 27.4%


5

US E-Commerce Industry (Contd…):

Below are the facts about US e-commerce industry:

• 51% of Americans prefer to shop online

• Ecommerce is growing at a faster rate as compared to offline, yet 46% of American small businesses do not have a website

• Online orders increased 8.9% in Q3 2016, but average order value (AOV) increased only 0.2% - indicating that transactional growth is outpacing total revenue.

• When shopping online, nearly half (48%) of online purchasers first turn to a mass commerce marketplace.

• The top three factors that are very or extremely influential in determining where Americans shop are price (87%), shipping cost and speed (80%) and discount offers (71%).

• 55% of all ecommerce sales are done through branded stores, vs. 45% via marketplaces. Of the 45% of all sales through marketplaces, the most common destinations are:

o Amazon – 36%

o eBay – 8%

o Etsy and others – 1%

• 70% of shoppers plan to check out Amazon Prime on Prime Day

(Source: https://www.bigcommerce.com/blog/ecommerce-trends/)

Amazon is by far the most popular e-retailer in the US. In term of market share, Amazon’s e-commerce revenue was around 66% of USD 52bn growth in US online retail in 2016. In other words, Amazon represents 27.4% of the total increase in retail sales in US. Below are few of the reason why, Amazon is commending a top position in the US e-commerce retail:

• Amazon has popular mobile shopping apps, in terms of reach and monthly users

• Customer centric

• Right pricing of the products

• Effective delivery network

• Large number of third party sellers

• Technological advanced information system

• Continuous innovation that makes it favorite among the customers

Role of third party retailers in Amazon’s business:

Globally, Amazon has 2mn third party sellers, many of which are small mom and pop businesses that are running out of their garage/home, which contributed around 50% of Amazon’s worldwide sale. Amazon charges commission from third party sellers and is typically 10-40% of the purchase price. As third party revenue and orders are growing year after year, this makes it as the one of the profitable business model for Amazon. There are no other competitors, which is in the line to match the selection, price and the number of sellers than Amazon. Many third party sellers are using Amazon’s FBA (Fulfillment by Amazon) service that has driven sales growth. The FBA program is extremely unique compared to any other marketplace. That is why these marketplaces are not growing nearly as rapidly as Amazon.

Below is the list of benefits Amazon enjoys from third party retailers:

• Incredible amount of product selection and more options for customers

• Lower product pricing mainly due to competition among the third party retailers

• Amazon doesn’t own or take any risk associated with the products sold by the third party retailers

• Lower logistics cost reduction due to economics of scale as there will be more shipping volume from the third party retailers.

Amazon is growing its dominance in the US retail market and this can be demonstrated from the fact that its e-commerce revenue was around 66% of USD 52bn growth in US online retail in 2016. In other words, Amazon represents 27.4% of the total increase in retail sales in US.

6

Company Introduction:

IntraSoft Technologies Ltd. (ITL) is a multi-channel e-commerce retail platform, with a strong technology backbone that primarily serves the US market. The company sells its products from its own site www.123stores.com. It also has shop-in-shop partnerships with other leading retailers and sells its products on their market places. Because of its partnership with other market places, it is able to reach 95% of the total online shoppers in the US. The company currently sells across 10 different market places including Amazon.com (US), Amazon Canada, eBay.com, Sears.com, New Egg, Rakuten (buy.com), Jet.com, Alibaba’s 11main.com, Bestbuy.com and its own e-commerce site www.123stores.com. Over the period, ITL has expanded its product catalogue and is now partnering with over 1,900 suppliers and selling more than 0.6mn products at various market places.

Business model: ITL’s business model is to create a large distribution network, wherein it can offer its customers a better shopping experience including a better price point by leveraging its technology, efficient supply chain management and deep relationships with its suppliers. Its’s retail business is backed by its proprietary technology platform, which the company has capitalized to enable business grow benefiting stakeholders at all levels. Its in-house technology has allowed it to automate and improve all the business functions, thereby giving edge over the competitors. This technological edge allows it to offer a huge selection of products, catering to a wider customer cross-section. Besides this, the company can easily handle a large volume of orders with efficient supply chain management. Online buyers benefit from a better price point and greater range of products. This, in turn, increases the traffic and reinforces the cycle.

For order fulfillment, the company has deep relationships with UPS and FedEx (leaders in the logistics industry) as well as partnerships with several regional carriers. Through these arrangements, the company is able to deliver goods in 95% of the US regions in just 2-3 business days.


Value Proposition Created by ITL for its Stakeholders: 123stores has been the key element for success for all its stakeholders i.e. suppliers, marketplaces, logistics partners and customer. Suppliers: • Improves sales by taking the products online allowing them to be product-focused • Gives easy access to multiple retailers without any incremental cost • Provides a seamless process for order placement, catalog, inventory, shipments, payments and returns • Ensures brand integrity by maintaining a consistent value proposition across all retail channels • Availability of products for sale on real-time

7

Company Introduction (Contd…):

Marketplaces:

• Enhances the product portfolio by providing access to multiple new vendors at no incremental cost

• Provides superior shopping experience - unique and seamless product availability, delivery, management and customer service

• Connects customers to a wide range of products at zero management cost

Logistics Partners:

• Offers significant scale advantage by providing bulk business each time

• Ensures seamless order placement using the proprietary platform

• Gives access to a dedicated relationship managers

Customers:

• Provides quality post-sales support

• Ensures low risk and secure shopping experience because of strong vendor management

• Provides superior price points and better inventory management

Apart from e-commerce business, the company is also into providing electronics greetings cards through 123greetings.com. Since these cards are provided free to users, this website has grown in popularity and currently the second largest in the world in terms of visitors.

Source of revenue: Primary source of revenue for the company is the advertisement revenue from the greeting business (mainly through 123greetings.com) and revenue from the e-commerce segment (through 123Stores.com). Over FY14-17, e-commerce revenue has increased by 93.1% CAGR to Rs. 9,258.6mn in FY17, whereas, advertisement revenue declined by 12.8% CAGR.

Source: Choice Broking Research Source: Choice Broking Research

Revenue Breakup in FY17 Segmental revenue over FY14-17

98.6%

1.4%

E-commerce Revenue (%) Advertisement Revenue (%)

1,284.9

3,226.4

6,990.7

9,258.6

199.0 202.7 178.0 131.9 0

2,000

4,000

6,000

8,000

10,000

FY14 FY15 FY16 FY17

E-commerce Revenue (Rs. mn) Advertisement Revenue (Rs. mn)

8

Company Introduction (Contd…):

Corporate Structure: As on FY17 end, ITL had three wholly owned subsidiaries and two step down subsidiaries i.e. 123Greetings.com, Inc. (USA), Intrasoft Ventures Pte. Ltd. (Singapore) and One Two Three Greetings (India) Pvt. Ltd. (India). 123Stores, Inc (USA) is a wholly owned subsidiary of Intrasoft Ventures Pte. Ltd. and 123Stores E-Commerce Pvt. Ltd., wholly owned subsidiary of 123Stores, Inc. The entire group focuses on the e-commerce business by consolidating all operations related to E-Commerce and online greeting activities to achieve financial and operational efficiencies.


Intrasoft Technologies Ltd.

123Greetings.com, Inc. (USA)

(Contributes 1.8% to the consolidated

revenue)

Intrasoft Ventures

Pte. Ltd. (Singapore)

123Stores, Inc. (USA)

(Contributes 98.2% to the consolidated

revenue)

123Stores ECommerce Pvt. Ltd. (India)

One Two Three Greetings (India) Pvt.

Ltd. (India)

100% 100% 100%

9

Investment Rationale:

1) Robust proprietary technology platform: Over the last 4-5 years, ITL has developed an in-house e-commerce platform, so as to automate each and every process in the entire supply chain. The platform has the flexibility to integrate with other market places and outputs a transaction which is of high satisfaction to all the stakeholders. Because of this flexibility, the company was able to integrate with nine other prominent market places, thereby attracting more vendors towards it. Through this platform, ITL has fully automated its ecosystem from marketplace to 123Stores to vendors to logistics partner. As a result, 95% of the orders are automatically verified and is forwarded to the respective vendors and logistics partner. Only orders with certain anomalies are manually verified. Additionally, over 96% of the orders are shipped on-time. The company’s platform is tested OK for any event, where there is an upsurge in the orders. On normal days, ITL’s platform executes around 3,000-4,000 orders per day, while on special events like Christmas, Amazon’s Prime Day, Thanksgiving Day etc., the order has touched to 11,000. The company is confident that its technology can be scaled up maybe 3 to 4 times in future from the current levels without any additional capex and issues.

2) Scalable business leading to an operating leverage: Because of the robust e-commerce platform and its flexibility to integrate with other market places, ITL was able to increase its business. The company is targeting to get listed with more and more market places and deliver maximum number of goods. Its proprietary technology platform allows it to scale order volumes with minimal human interaction, enabling cost savings as the order volumes grows. Business scalability can be demonstrated from the robust performance of the company in the last four years. Along with the scalability of orders, the company was able to sustain high customer ratings across all market places. Over FY14-17, the company has reported a robust growth in the vendor addition (+24.9% CAGR) and order shipment (+123.7% CAGR), while the customer rating stood at over 97% between FY15-17. Employee productivity also improved from Rs. 20.8mn per employee to Rs. 54.8mn in FY17.

Active Vendor Base over FY14-17 Order Shipment over FY14-17


Employee Productivity over FY15-17 Consistent Positive Customer Rating over FY15-17

975 1,030

1,600

1,900

0

500

1,000

1,500

2,000

FY14 FY15 FY16 FY17

0.3

0.8

2.0

2.9

0.0

1.0

2.0

3.0

FY14 FY15 FY16 FY17

20.8

37.6

54.8

0

10

20

30

40

50

60

FY15 FY16 FY17

97%

98%

97%

95%

96%

97%

98%

99%

FY15 FY16 FY17

10

Investment Rationale (Contd…):

The management is of the opinion that there is a clear correlation between automation and its capacity to execute orders. Since the company has already done with capex on technology end, now it can easily increase its vendor base and ramp-up its executable order level, without incurring any significant capex, thereby leading to an operating leverage gain. Based on a conservative estimate of rise in vendor base by 8.8% CAGR over FY17-19, we are anticipating an increase of 27.5% CAGR rise in order shipment. Consequently, EBITDA margin is expected to expand by 70bps over FY17-19 to 2.6%.

3) Majority of revenue from Amazon Platform: The company lists its products on Amazon market place as third party retailer. Around 60-75% of the business is generated from the Amazon platform. Globally, Amazon has 2mn third party sellers, many of which are small mom and pop businesses that are running out of their garage/home, which contributed around 50% of the Amazon’s worldwide sale. According to the ITL management, there are around 1.7mn third party sellers in US alone and of that around 50,000-60,000 players have similar business model like ITL and among them the company is in the top-100.

Amazon charges commission from third party sellers and is typically in the range of 10-40% of the purchase price. As third party revenue and orders are growing year after year, this makes it as one of the profitable business model for Amazon. There are no other competitors, which is in the line to match the selection, price and the number of sellers than Amazon. Many third party sellers are using Amazon’s FBA service that has driven sales growth. The FBA program is extremely unique compared to any other marketplace. That is why these marketplaces are not growing nearly as rapidly as amazon.

According to RW Baird (a capital market company in US), around 80-90% of the product selection in some categories on Amazon platform comes from third party sellers. This demonstrates the strength of third party sellers for Amazon.

Below is the given information on the third-party seller share on the Amazon platform for Q2 CY17, based on paid units. As of Q2 CY17, 51% of paid units were sold by third-party sellers. In 2016, Amazon generated around USD 23bn revenue from the third-party seller, up from USD 16bn in the previous year. Seller-service revenues account for the second-largest revenue segment of the online retail platform, after retail product sales and ahead of Amazon web service revenues.


Category wise Product Selection on Amazon in Q3 CY15


Revenue contribution from third party sellers for Amazon

21% 19% 14% 13% 11% 10% 17%

79% 81% 86% 87% 89% 90% 83%

Amazon as Seller Third Party as Seller

44% 45%

46% 47%

48% 49%

50% 49%

50% 51%

40%

45%

50%

55%

Q1CY15

Q2CY15

Q3CY15

Q4CY15

Q1CY16

Q2CY16

Q3CY16

Q4CY16

Q1CY17

Q2CY17

11


Amazon is growing its dominance in the US retail market and this can be demonstrated from the fact that its e-commerce revenue was around 66% of USD 52bn growth in US online retail in 2016. In other words, Amazon represents 27.4% of the total increase in retail sales in US. We are of the opinion that Amazon will continue its dominance, mainly because of its pricing and efficient product delivery operations. Thus we feel that ITL with its efficient and high rating operation will continue to benefit from the dominance of Amazon in US market.

4) Higher business from inventory model too will aid in margin expansion: ITL operates under drop-ship and inventory (warehouse) e-commerce model. Around 70% of the business is generated from drop-ship model, while the rest is from inventory model. Under drop-ship model, there is no need to maintain the inventory of the goods. When an order is placed by the customer, it is directly routed to the concerned vendor and the goods are lifted by the logistic partner from the vendors place. So there is hardly any inventory risk associated with drop-ship model and thus the profitability margins are also lower. ITL also stores some goods at its warehouse and sells it during key events (like Christmas, Cyber Day, Thanksgiving Day, Amazons Prime Day etc.). During such events, customers demand speedy delivery of goods at competitive price, so it makes sense for the market places to store certain quantity of goods. Analyzing the historical and current trend, ITL anticipates the demand of certain products and accordingly places a bulk order with the vendor and gets bulk purchase discount. This goods (i.e. from inventory model) when realized at a market rate, leads to high profitability margin as compared to business under drop-ship model.

In FY16, ITL has raised around Rs. 607.6mn from the sale of shares held by Intrasoft Beneficiary Trust. Additionally, in FY17, it has secured a line of credit of USD 8mn from UPS. These capitals will be mainly utilized for expanding the inventory model business. Hence going forward, we are expecting lower cost of goods sold on account of higher revenue contribution from inventory model. Since the company generates majority of its business from drop-ship model, we are not anticipating any significant expansion in the EBITDA margin. Over FY17-19, EBITDA margin is expected to expand by 70bps 2.6%.

Margin Expansion over FY17-19


19.3% 19.5% 19.9%

1.9% 2.1% 2.6%

0%

5%

10%

15%

20%

FY17 FY18E FY19E

E-Commerce Gross Margin (%) Consolidated EBITDA margin (%)

12


5) New supplier contract will free up the capital resulting to a higher operating cash flow: In Q2 CY17, ITL started negotiating new terms with the vendor, pursuant to which it is demanding a suppliers credit from the vendors. Earlier it was giving advances to the vendors. In FY16, the company had Rs. 256.3mn as short term loans & advances and Rs. 324.3mn as trade payables. So the net payable for the company was Rs. 68mn. In FY17, it had short term loans & advances of Rs. 49.7mn, while trade payable was Rs. 173.9mn, so net payable stood at Rs. 124.1mn (an increase of Rs. 56.1mn over FY16). Consequently, cash flow from operations (CFO) stood at Rs. 378mn as compared to negative CFO of Rs. 406.6mn in FY16. During FY16, inventory days stood at 9.7days, which we are forecasting it to gradually increase to 12 days levels by FY19. Further CFO is forecasted at Rs. 240.6mn and Rs. 303.4mn in FY18 and FY19, respectively.

6) Consistent financial performance over FY14-17 and is expected to continue in future: On the back of 92.6% CAGR rise in the order shipment over FY15-17, ITL reported a 65.4% CAGR rise in the consolidated operating revenue to Rs. 9,390.1mn in FY17. During the same period, due to the change in sales mix, average order value declined by 12% CAGR. E-commerce gross margin improved from 18.6% in FY15 to 19.3% in FY17, this was mainly due to lower cost of goods sold. Consequently, consolidated EBITDA increased by 88.1% CAGR over FY15-17 to Rs. 175.6mn in FY17. EBITDA margin improved from 1.4% in FY15 to 1.9% in FY17. Depreciation and finance charge increased by 13.1% and 116.3% CAGR over the same period. Consequently, consolidated adjusted PAT increased by 52.1% CAGR to Rs. 138mn in FY17. Adjusted PAT margin contracted from 1.7% in FY15 to 1.5% in FY17, which was mainly due to higher finance charge.

Going forward, we are forecasting a top-line growth 28.8% CAGR over FY17-19. This will be mainly driven by 27.5%

CAGR increase in order shipment and a modest rise of 1.4% CAGR in the average order value. Consolidated EBITDA is likely to increase by 50.7% CAGR with around 70bps expansion in the margin. Finance cost is likely to decline by 58.6%, thereby resulting to 44.3% CAGR rise in consolidated PAT. PAT margin is likely to expand by 40bps to 1.8% in FY19. RoE to improve from 10.5% in FY17 to 16.7% in FY19, while RoCE to increase from 10.5% to 20.6% over the same period.


Increase in Net Payable to the Vendors Operating cash flow over FY14-19

(600.0)

(300.0)

0.0

300.0

600.0

FY14 FY15 FY16 FY17 FY18E FY19E

Short Term Loans & Advances (Rs.mn)

Trade Payables (Rs. mn)

Net Payable to the Vendors (Rs. mn)

18.3 25.8

(406.6)

378.0

240.6 304.3

(500.0)

(250.0)

0.0

250.0

500.0

FY14 FY15 FY16 FY17 FY18E FY19E

13


7) Continuous improvement in the ranking: 123Stores is ranked 223 on the Internet Retailers 2017 Top 500, a gain of 39 ranks over its 2016 position. This is the fourth consecutive year that it has featured in the list of online retailers. The company name was included in the list in 2014 with a ranking of 499 and over the period, it has improved its ranking. When any vendor looks to tie up with a web retailer, it takes the reference of such rankings. Continuous improvement in ITL’s ranking reflects the acceptance among the vendors, which normally looks into the quality of services & software provided, the quality of delivery engine and the online presence.

In 2014, 123Stores is ranked 1,641 in the Inc. 5000 list as the fastest growing private US companies. It was also ranked 19th among the fastest growing web only retailer, having grown its business by 50% from USD 95.2mn in 2015 to USD 142.1mn in 2016.

Ranking in 2014: 499




Ranking on the Internet Retailers 2017 Top 500 List

Continuous improvement in the ranking, with a jump of 276 ranks over 2014

14

Recent Quarter and Annual Performance Analysis:

Recent Quarter Result Analysis: During Q4 FY17, ITL reported 15.8% Y-o-Y rise in the consolidated operating revenue to Rs. 2,161mn. E-commerce business increased by 18.4% Y-o-Y, while on a sequential basis, E-commerce business declined by 21.8%. Q4 FY17 normally is a slack quarter for the company. During this period, it normally plans for next year and approaches the existing vendors for the contract renewal and also eyes on new vendor addition. During the quarter, ITL added around 67 new vendors in the active client list, taking the total to over 1,900. In Q4 FY17, order shipment increased by just 4.3% Y-o-Y to 0.6mn units. In Q4 FY16, it reported an order shipment growth of 109.9% Y-o-Y. Lower growth during Q4 FY17 was mainly due the ongoing negotiation of the new vendor contract. Average order value (AOV) increased by 13.5% Y-o-Y, mainly due the change in the sales-mix. E-commerce gross profit increased by 30.7% Y-o-Y with an expansion in margin by 1.8ppts Y-o-Y to 18.8%. This was mainly due lower cost of goods sold, which as a percent of E-commerce revenue declined from 68.4% in Q4 FY16 to 64.6% in Q4 FY17.

Sales & marketing expenses increased by 16.8% Y-o-Y, however, as a percent of operating revenue it remained stable at 14.3%. Employee expenses declined by 6.9% Y-o-Y. Consolidated EBITDA was at a loss of Rs. 7.2mn in Q4 FY17 as compared to a loss of Rs. 14mn in Q4 FY16. Normally, Q4 is typically a loss making to breakeven quarter for the company.

Depreciation charge increased by 9% Y-o-Y, while finance charge declined by 7.2% Y-o-Y. Consequently, in Q4 FY17 consolidated profit before tax as at loss of Rs. 2.4mn as compared to a profit of Rs. 331.5mn in Q4 FY16. In Q4 FY16, there was an exceptional item of Rs. 338mn, which arise from the gain of Rs. 607.6mn from the sale of shares held by the Intrasoft Beneficiary Trust and was partially offset by software write-off of Rs. 263.5mn. Adjusted profit after tax (PAT) was at a loss of Rs. 7.8mn as compared to a loss of 0.4mn in Q4 FY16.

Quarterly Operational Metric Quarterly Financial Performance


Quarterly Financial Performance Quarterly Profitability Trend

1,600 1,746

1,783

1,833 1,900

3,436 3,508 3,210

2,709

3,901

0.53

0.62

0.67

1.02

0.55

0.30

0.50

0.70

0.90

1.10

0

1,000

2,000

3,000

4,000

Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17

Active Vendor Base Average Order Value (Rs.)

Order Shipped (mn)

1,869.3

2,221.7 2,189.8

2,817.6

2,161.0

310.7 423.8 425.3 528.6 406.1

0

500

1,000

1,500

2,000

2,500

3,000


Total Operating Revenue (Rs. mn)

E-commerce Gross Profit (Rs. mn)

(14.0)

46.0 49.1

87.7

(7.2) (0.4)

26.5

54.0 65.3

(7.8) (20)

0

20

40

60

80

100


EBITDA (Rs. mn) Adjusted PAT (Rs. mn)

-5%

0%

5%

10%

15%

20%


E-commerce Gross Profit Margin (%)

Consolidated EBITDA margin (%)

Adjusted PAT Margin (%)

15

Recent Quarter and Annual Performance Analysis:

Recent Annual Result Analysis: On the back of 45.5% rise in the order shipment and 9% decline in the AOV, ITL reported 32.4% rise in the E-commerce revenue in FY17. Order shipment was at its lowest level, primarily on account of high base and negotiation of new contracts with the vendors. In FY15 and FY16, order shipment increased by 201.8% and 154.8%, respectively. During the year, active vendor base increased by 300 to over 1,900 and listing of products on site increased by 0.125mn to 0.625mn. Business from E-greetings declined by 25.9%. Consolidated operating revenue increased by 30.8% to Rs. 9,390.1mn in FY17.

Cost of goods sold increased at a relatively lower pace as compared to top-line to 28.9%. As a percent of e-commerce revenue, cost of goods sold stood at 64.2% as compared to 65.1% in FY16. Shipping & handling expanses increased by 37.8%. As a result E-commerce gross profit increased by 41% with a margin of 19.3% (representing an expansion of 1.2ppts over FY16).

Sales & marketing expenses increased by 34.7% (as a percent of operating income, it increased from 14% in FY16 to 14.5% in FY17). Employee expenses increased at a modest rate of 2.1%. Consolidated EBITDA increased by 81.7% with around 50bps expansion in the margin to 1.9% in FY17.

Depreciation and finance charge increased by 17.5% and 50%, respectively. During the year, there was no exceptional gain as compared to Rs. 338mn in FY16. As a result, consolidated profit before tax declined by 56.2% to Rs. 195.8mn. Consolidated adjusted PAT increased by 64.6% to Rs. 138mn, with a margin of 1.5% (an expansion of 30bps over FY16.). RoE and RoCE increased from 7.1% and 5.3% in FY16 to 10.51% and 10.48%, respectively in FY17.

Annual Operational Metric Annual Financial Performance


Annual Financial Performance Annual Profitability Trend

1,030

1,600

1,900 2,100 2,250

4,174.0

3,550.0 3,230.5

3,257.6

3,322.8

0.8

2.0

2.9

3.7

4.7

0

1

2

3

4

5

500

1,500

2,500

3,500

4,500

FY15 FY16 FY17 FY18E FY19E

Active Vendor Base Average Order Value (Rs.)

Order Shipped (mn)

3,433.3

7,178.7

9,390.1

12,237.3

15,575.0

601.5 1,265.3 1,783.8 2,370.4

3,084.7

0

4,000

8,000

12,000

16,000


Total Operating Revenue (Rs. mn)

E-commerce Gross Profit (Rs. mn)

49.7

96.6

175.6

256.9

398.6

59.6 83.8

138.0

184.0

284.9

0

50

100

150

200

250

300

350

400


EBITDA (Rs. mn) Adjusted PAT (Rs. mn)

0%

5%

10%

15%

20%


E-commerce Gross Profit Margin (%)

Consolidated EBITDA margin (%)

16

Recent Quarter and Annual Performance Analysis (Contd…):

Expectations for FY18 and FY19: In FY17, ITL added 300 new vendors to its active vendor base. With ongoing negotiation of new vendor contract, we are anticipating a slowdown in the vendor addition. We are forecasting a vendor addition of 200 and 150 in FY18 and FY19, respectively. Further, on the back of high base, we are expecting an order shipment growth of 30% and 25%, respectively over the same period. We are estimating almost a flat AOV in FY18, while the same is expected to rise by 2% in FY19. As a result, E-commerce revenue is predicated to rise by 31.1% and 27.5% in FY18 and FY19, respectively to Rs. 12,137.3mn and Rs. 15,475mn. With continuous declining of business from E-greeting, we are assuming revenue of Rs. 100mn each over the same period. Thus consolidated operating revenue is expected at Rs. 12,237.3mn and Rs. 15,575mn in FY18 and FY19.

Cost of goods sold (inclusive of shipping & handling expenses) is expected to increase by 30.7% and 26.9% in FY18 and FY19, respectively. As a percentage of top-line it is expected at 80.5% and 80.1% over the same period. Gross profit is likely to increase by 32.9% and 30.1%, with a margin of 19.5% and 19.9% in FY18 and FY19, respectively. Gross profit margin is not anticipated to improve much as major portion of the business will be from drop-ship model, where the margins are less as compared to the inventory model.

As a percentage of top-line, sales & marketing expenses are expected to remain at same level of 14.3-14.5%. As a result, consolidated EBITDA is forecasted to rise by 46.3% and 55.2%, respectively, in FY18 and FY19. EBITDA margin to improve by 23bps and 46bps, respectively, over the same period.

Depreciation charge is likely to increase by around 10% each in FY18 and FY19, while finance charge is expected to decline by 77.2% and 25%, respectively. This will be mainly due to the repayment of long term debt. Assuming a full tax rate of around 30% in both the years, we arrive at an adjusted PAT of Rs. 184mn and Rs. 284.9mn in FY18 and FY19. PAT margin is expected at 1.5% and 1.8%, respectively, over the same period.

Risk & Concern:

• Seasonal business: Since ITL’s business operation is concentrated in US, where Q3 of the calendar year is a festive season. So the company generates around 30-32% of the annual revenue during this period. Additionally, more that 50% of the annual EBITDA and annual profits are generated during this quarter. Any disturbance in the business operations during this period is expected to adversely affect the annual revenue and profitability of the company.

• Competition: Business of ITL is rapidly evolving and intensely competitive and it has many competitors. There are around 1.7mn third party retailers in Amazon platform and ITL is one of them. Many of its current and potential competitors have greater resources, longer histories, more customers and greater brand recognition. They may secure better terms from vendors, adopt more aggressive pricing and devote more resources to technology, infrastructure, fulfillment, and marketing which may impact the performance of the company.

• Inventory risk: In FY17, around 70% of the business of the business was generated from drop-ship model, where there is no inventory risk. Rest of the business is generated from inventory model and has inventory risk. Historically, the company through its efficient algorithmic model has improved its inventory turnover. Going forward, we are expecting higher business concentration from the inventory model. Thus any variance in predicting the demand of certain goods or any rapid change in the product cycle & pricing, change in the consumer taste etc. will have to bear inventory loss, which will be negative for the company.

• Foreign currency fluctuation risk: ITL’s revenue is largely dependent on US economy due to presence of large consumer base there. Hence, the revenue of the company is exposed to foreign exchange fluctuations risk.

• Shifting of the vendors directly to the marketplaces: ITL is a third party retailer. It contacts it active vendor base and lists their products on the Amazon platform. In a way it acts as an intermediary between the vendors and the market places. If marketplaces, through their aggressive acquisition strategy try to influence ITL’s vendors with better pricing and services, these vendors may shift to them, thereby threatening the business model of ITL. However, we believe that this may not work out as all the market places are encouraging third party players like ITL to increase their business and increase every stakeholders value.

17

Peer Comparison:

Company Name Currency CMP (Rs.)

MCAP (Rs. mn)

EV (Rs. mn)

Stock Return (%) TTM Total Operating Revenue (Rs. mn)

TTM EBITDA (Rs. mn)

TTM PAT (Rs. mn)

TTM Gross Profit

Margin (%)

TTM EBITDA Margin

(%)

TTM PAT Margin

(%) 1 M 3 M 6 M 1 Y

IntraSoft Technologies Ltd. INR 439.4 6,472 5,773 19.2% 14.3% 15.7% -9.1% 9,390.1 175.6 138.0 19.0% 1.9% 1.5% Wayfair Inc. USD 78.2 6,774 6,426 3,593.8 -144.9 -209.7 24.1% -4.0% -5.8% Overstock.com, Inc. USD 16.7 417 234 1,818.7 19.4 -2.2 18.7% 1.1% -0.1% Average 21.4% -1.5% -3.0%

Company Name EPS (Rs.)

BVPS (Rs.)

DPS (Rs.)

Debt Equity Ratio

Fixed Asset Turnover

Ratio RoE (%) RoCE (%)

P / E (x)

P / B (x)

EV / Sales (x)

EV / Gross Profit (x)

EV / EBITDA (x)

MCAP / Sales (x)

IntraSoft Technologies Ltd. 9.4 89.1 2.0 0.1 47.2 10.5% 10.5% 46.9 4.9 0.6 3.2 32.9 0.7 Wayfair Inc. (2.5) 0.4 0.0 36.4 4.6 185.4 1.8 7.4 1.9 Overstock.com, Inc. (0.1) 6.8 0.0 34.3 3.9 1.9% 2.5 0.1 0.7 17.4 0.2 Average -1.3 3.6 0.0 35.3 4.3 93.9 1.0 4.1 17.4 1.0

Source: Choice Broking Research; Ace Equity Note: For US listed companies, CMP is in USD and other figures are in USD mn (wherever it is applicable)

Source: Choice Broking Research; Ace Equity

There is no listed Indian peer for ITL. The above two listed peers are US web based retailer and they are big players as compared to ITL. Why ITL is superior to its peers:

• ITL has a benefit of its low cost back office operations in India • Highly productive with asset turnover ratio of 47.2x • ITL has huge growth potential, which can be reflected from the average five years top-line growth of around 75%, as

compared to 51% of Wayfair Inc. and 12% of Overstock.com, Inc. • Despite having relatively lower gross profit margin, ITL is profitable on EBITDA and PAT level • Of the above listed companies ITL is the only company with positive free cash flow (in FY17, free cash flow was Rs.

338.3mn and is further expected to improve). • Almost debt free as compared to its peers • Consistent dividend paying company

18

Valuation:

Going forward, the company is expected to benefit from the business scalability coupled with operating leverage gain. Currently it has no liquidity pressure. It is negotiating new sales contract with the vendors, which will ease the pressure on working capital. Additionally, it is CFO and free cash flow positive and with no future major capex requirement and easing working capital, we feel that in future also it will generate enough funds. These funds will be reinvested in the business to generate additional business and profitability. Most of the funds will be used to acquire vendors and expand the inventory model, which is highly profitable as compared to drop-ship model. We estimate ITL’s total operating income to grow at 28.8% CAGR over FY17-19 to Rs. 15,575mn, while EBITDA and PAT to grow at 50.7% and 43.7% CAGR, respectively, over the same period to Rs. 398.6mn and Rs. 284.9mn. At the CMP of Rs. 447.8, ITL’s share is trading at TTM EV/Sales multiple of 0.6x as against the peer average of 1x. Additionally, it is trading at an TTM EV/Gross Profit and MCAP/TTM Sales multiple of 3.2x and 0.7x, respectively, as compared to the peer average of 4.1x and 1x. The company is operationally efficient as compared to its peers and this is demonstrated from its profitability at EBITDA & PAT level and higher fixed asset turnover. Considering the future growth potentials and its positioning among peers in terms of valuation, we feel that it is undervalued. Based on EV/Sales multiple of 0.5x to FY19E sales, we arrive at a target price of Rs. 626.4 per share, translating into a potential gain of 42.6%. Thus we recommend a “BUY” rating on the stock.

Particular (Rs. mn) Multiple FY19 Sales 0.5 15,575.0 Enterprise Value 8,112.0 Less Non Equity Claims (81.1) Add Excess Cash 1,196.6 Equity Value 9,227.6 Total Shares O/s 14.7 Target Price 626.4


19

Consolidated Financial Statement



Consolidated Profit and Loss Statement Rs. mn FY14 FY15 FY16 FY17 FY18E FY19E

Total Operating Revenue 1,495.4 3,433.3 7,178.7 9,390.1 12,237.3 15,575.0 Cost of Goods Sold / (Product and Content Development Expenses)

(1,077.3) (2,624.9) (4,675.3) (6,027.5) (7,918.7) (10,038.1)

Shipping and Handling Expenses 0.0 0.0 (1,050.1) (1,447.3) (1,848.2) (2,352.3) Sales and Marketing Expenses (211.9) (500.4) (1,008.0) (1,357.3) (1,748.4) (2,225.3) Employee Benefit Expenses (121.3) (178.2) (228.6) (233.3) (281.5) (342.7) Other Expenses (103.6) (80.1) (120.0) (149.1) (183.6) (218.1) EBITDA (18.7) 49.7 96.6 175.6 256.9 398.6 Depreciation and Amortization Expenses (40.2) (14.7) (16.0) (18.7) (20.6) (22.5) EBIT (58.9) 35.0 80.7 156.8 236.3 376.1 Finance Costs (9.0) (7.6) (23.7) (35.6) (8.1) (6.1) Other Income 46.1 41.1 46.5 74.5 34.7 36.9 Exceptional Items 0.0 0.0 344.1 0.0 0.0 0.0 PBT (21.8) 68.5 447.5 195.8 262.9 407.0 Tax Expenses 42.4 (8.8) (19.6) (57.8) (78.9) (122.1) Adjusted PAT 20.6 59.6 83.8 138.0 184.0 284.9

Consolidated Balance Sheet Statement Rs. mn FY14 FY15 FY16 FY17 FY18E FY19E

Share Capital 147.3 147.3 147.3 147.3 147.3 147.3 Reserves and Surplus 626.7 647.8 1,033.4 1,164.9 1,313.7 1,563.3 Long Term Borrowings 24.0 21.2 331.3 162.1 121.6 81.1 Deferred Tax Liabilities (Net) 0.0 1.4 10.6 12.6 9.9 12.6 Long Term Provisions 4.8 8.3 4.4 9.4 27.8 35.4 Other Long Term Liabilities 6.8 0.0 0.0 0.0 0.0 0.0 Short Term Borrowings 190.0 0.0 33.0 0.0 0.0 0.0 Trade Payables 49.5 126.7 324.3 173.9 354.5 512.1 Other Current Liabilities 48.9 105.3 139.9 170.0 230.0 292.8 Short Term Provisions 17.3 17.9 38.5 47.9 64.0 81.5 Total Liabilities 1,115.3 1,075.9 2,062.7 1,888.0 2,268.8 2,725.9

Tangible Assets 180.1 170.9 190.7 193.8 202.8 217.6 Intangible Assets 4.3 5.3 5.9 4.9 3.7 2.5 Capital Work in Progress 4.8 0.0 0.4 0.0 0.0 0.0 Intangible Assets Under Development 263.5 263.5 0.0 0.0 0.0 0.0 Non Current Investments 291.3 89.6 49.6 49.6 49.6 49.6 Deferred Tax Assets 6.3 0.0 0.0 0.0 6.5 8.2 Long Term Loans and Advances 1.1 112.2 203.6 216.6 223.3 256.0 Current Investments 0.0 0.0 536.2 668.4 740.4 848.9 Inventories 13.0 121.3 553.0 412.5 601.9 783.4 Trade Receivables 51.2 31.7 90.1 95.0 112.2 148.1 Cash and Bank Balance 83.3 133.3 172.6 193.6 273.2 347.8 Short Term Loans and Advances 199.6 131.7 259.0 49.7 51.3 58.8 Other Current Assets 16.7 16.3 1.6 3.9 4.0 5.0 Miscellaneous Expenditure 0.0 0.0 0.0 0.0 0.0 0.0 Total Assets 1,115.3 1,075.9 2,062.7 1,888.0 2,268.8 2,725.9

20

Consolidated Financial Statement (Contd…)



Consolidated Financial Ratios FY14 FY15 FY16 FY17 FY18E FY19E

Profitability & Return Ratios EBITDA Margin (%) -1.2% 1.4% 1.3% 1.9% 2.1% 2.6%

Adjusted PAT Margin (%) 1.4% 1.7% 1.2% 1.5% 1.5% 1.8%

RoNW (%) 2.7% 7.5% 7.1% 10.51% 12.6% 16.7%

RoCE (%) -7.3% 4.2% 5.3% 10.48% 14.6% 20.4%

Working Capital & Liquidity Ratios Current Ratio (X) 1.2 1.7 3.0 3.6 2.7 2.5

Quick Ratio (X) 1.1 1.3 2.0 2.6 1.8 1.6

Interest Coverage Ratio (6.5) 4.6 3.4 4.4 29.1 61.9

Turnover & Leverage Ratios Fixed Asset Turnover (X) 3.3 7.8 36.4 47.2 59.3 70.8

Total Asset Turnover (X) 1.3 3.2 3.5 5.0 5.4 5.7

Debt Equity Ratio (X) 0.3 0.0 0.3 0.1 0.1 0.0

Dividend Pay Out Ratio 71.2% 49.4% 17.7% 21.3% 15.9% 10.3%

Valuation Ratios

DPS (Rs.) 1.0 2.0 1.0 2.0 2.0 2.0

BVPS (Rs.) 52.5 54.0 80.1 89.1 99.2 116.1

EPS (Rs. Cr) 1.4 4.0 5.7 9.4 12.5 19.3

P / E (X) 35.2 22.7

P / BVPS (X) 4.4 3.8

EV / Sales (X) 0.5 0.4

Consolidated Cash Flow Statement Particulars FY14 FY15 FY16 FY17 FY18E FY19E Profit before Tax (21.8) 68.5 447.5 195.8 262.9 407.0 Depreciation and Amortization 40.2 14.7 16.0 18.7 20.6 22.5 Interest Expenses 9.0 7.6 23.7 35.6 8.1 6.1 Dividend Income (5.8) (4.0) (1.2) (6.2) (26.1) (28.4) Interest Income (18.7) (13.1) (8.7) (8.6) (8.6) (8.6) Others (0.6) (19.1) (381.0) (74.7) 3.1 0.0 Change in Working Capital 19.9 (19.6) (406.0) 234.9 59.5 27.8 Tax Expenses (3.9) (9.1) (97.0) (17.6) (78.9) (122.1) Cash Flow from Operations Activities 18.3 25.8 (406.6) 378.0 240.6 304.3

Purchase of Fixed Assets (18.0) (10.2) (35.7) (21.8) (28.4) (36.1) Change in Investments 0.0 (148.3) (536.2) (892.8) (72.0) (108.5) Change in Loans & Advances (8.3) (40.2) Dividend Income 5.8 4.0 1.2 6.2 26.1 28.4 Interest Income 18.7 13.1 8.7 8.6 8.6 8.6 Others 108.3 385.6 717.9 819.4 0.0 0.0 Cash Flow from Investing Activities 114.8 244.2 156.0 (80.3) (74.0) (147.9)

Borrowings (Net) (68.3) (180.1) 325.8 (204.0) (40.5) (40.5) Finance Costs (9.0) (7.6) (23.7) (15.0) (8.1) (6.1) Dividend Paid (14.7) (29.4) (14.9) (29.3) (29.3) (29.3) Others (0.2) (6.2) 1.2 (6.0) (5.9) (5.9) Cash Flow from Financing Activities (92.2) (223.4) 288.4 (254.3) (83.9) (81.9)

Net Cash Flow 41.0 46.6 37.8 43.3 82.7 74.5 Opening Balance of Cash & Cash Balance 35.8 78.6 131.1 147.2 190.5 273.2 Closing Balance of Cash & Cash Balance 76.8 125.2 168.9 190.5 273.2 347.8

Documents

INITIATING COVERAGE IntraSoft Technologies Ltd. …reports.choiceindia.com/Reports/FUR010820171038421.pdfPadma Kajaria 9.5% University Of Notre Dame Du Lac 4.98% Washington University