Wed. Sep 11th, 2024
3C IT SOLUTIONS3C IT SOLUTIONS

3C IT SOLUTIONS Introduction

Who they are:

  • An IT systems integration company founded in 2015.
  • Offers a variety of IT products and services.
  • Caters to small, medium, enterprise, government and educational organizations.

What they do:

  • Provides IT infrastructure solutions, including hardware, networking, security, and data protection.
  • Offers digital business solutions and consulting services.
  • Acts as a single source for all your IT needs.
  • Specializes in customizing technology solutions to fit specific client requirements.

Understanding the Company’s Foundation:

History & Milestones of 3C IT SOLUTIONS

  • Founded: March 24, 2015, as a private limited company named “3C IT Solutions & Telecoms (India) Private Limited”
  • Location: Pune, Maharashtra, India
  • Public company: Became a public limited company on July 27, 2023, and changed its name to the current one
  • Area of Expertise: IT systems integration
  • Services Offered:
    • Infrastructure solutions (hardware, networking, security)
    • Digital business solutions
    • Consulting solutions

Overview of 3C IT SOLUTIONS

Company was originally incorporated as a private limited company under the name of “3C IT Solutions & Telecoms (India) Private Limited”, Pune, India on March 24, 2015.
3C IT Solutions, headquartered in Pune, Maharashtra, is an established IT systems integration company operating for the past 8 years. Our Company operates with a vision to provide competitive IT system integration capabilities endeavouring to use best- in-class technologies and hence bring significant value to the stakeholders. We aim to create a well-respected, highly skilled, and professional workforce that can serve the diverse technology needs of the businesses as our service portfolio comprises several IT-related services which cater to the needs of our customers.

service offerings are spread across the spectrum of various IT products and services bifurcated under 3 segments i.e. Infrastructure solutions, Digital business solutions, and Consulting solutions.

Vision & Strategy of 3C IT SOLUTIONS

  • Expand our Current Business Relationships:
  • Enhanced and customized innovative service offerings
  • Maintaining strategic focus on the Indian market
  • Continuous innovation
  • Competitive pricing – cost reduction and time efficiency
  • Enhancing operating effectiveness and efficiency

Directors & Promoters of 3C IT SOLUTIONS

NameDesignation
Mr. Ranjit Kulladhaja MayengbamChairman and Managing Director
Mrs. Gangarani Devi MayengbamExecutive Director and Chief Financial Officer
Mr. Sujeet Dinanath NaikNon-Executive and Non Independent Director
Mr. Dhirendra Sidh Nath TrivediNon-Executive and Independent Director
Mr. Shailendra Ramesh GanesheNon-Executive and Independent Director
Mr. Pandurang Avinash DeokarNon-Executive and Independent Director
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Market Landscape & Competitive Edge:

INDIAN IT AND BPM INDUSTRY

Over the past year, India has shown resilience and continues to be the fastest-growing large economy in the world. Similarly, the country’s technology industry has also exhibited continued revenue growth and is expected to grow double digits in constant currency terms in FY2023E.
FY23- Year of Steady Growth
Despite the global headwinds, the technology industry in India is set to witness steady growth in FY2023E. NASSCOM estimates that the Indian tech industry revenue to grow by $245bn, in reported currency with a cross-currency impact of 2%. This reflects an incremental net revenue addition estimated at $19 billion during the year. The growth has been across segments of IT services, BPM, Software products, ER&D and Domestic market. Mirroring the trend, the Indian service export revenue is expected to touch $194 bn in reported currency, a growth of 9.4% compared to FY2022.
Growth in exports is seen across all the major markets. The USA growing at 10.4% and APAC at 10.1%, each continues to be the major market. FY2023E recorded growth across core sectors – BFSI, Manufacturing, and Telecom/ HiTech, emphasizing the industry’s resilience narrative.
India’s massive digital infrastructure also played a key role in driving India’s domestic tech adoption. With continued investments by the government and enterprises in emerging technologies, India’s domestic sector emerged as the great propeller. Domestic revenue is growing 13% from FY22 in rupee terms, with a significant uptick in digital spending amongst Indian enterprises.
India as a global talent hub

The industry continues to be the net employer with over 5.4 million workforce, creating 290,000 new jobs in FY2023. With a 36% digitally skilled workforce, the industry remains on the top in terms of AI skills penetration, the 2nd largest in terms of AI/ML BDA talent pool, globally and 3rd globally, in terms of installed supply of Cloud professionals.
With a total of 2mn women employees, the industry showcases a deep focus on bringing diversity to the workplace reporting a net addition of over 140k women employees during the year.

Growth Drivers for the IT industry

In recent years, India has emerged as a global powerhouse for deep tech innovation capabilities & R&D and is steadfastly committed to ushering future growth and innovation for global enterprises. Global Capability Centres (GCCs) have had a huge impact in making India a destination of choice for Engineering R&D. 40% of global GCCs are present in the country today which demonstrates a tremendous opportunity for the country to scale up. India added 65+ new GCCs in the year taking the total to 1570+. Sub-sectors such as ER&D also witnessed an accelerated double growth at 11.1%
The proportion of digital tech in the overall technology services revenue has been increasing year after year. From only around 26-28% in FY2020, to leapfrogging to over 32-34% in FY2023, there has been increasing penetration of digital tech in the industry. Within this, Analytics, Cloud, and Cybersecurity are emerging as the fastest growing segments wherein the share of Cloud deals was reportedly 4X of pre-pandemic levels.

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Interestingly, since 2010, 60% of the total 266K tech patents filed in India are within emerging technologies; emerging tech patents accounted for 73% of all tech patents in 2022.

Government Initiatives

Some of the major initiatives taken by the government to promote the IT and ITeS sector in India are as follows:

  • Cabinet approved PLI Scheme – 2.0 for IT Hardware with a budgetary outlay Rs. 17,000 crore (US$ 2.06 billion).
  • In the Union Budget 2023-24, the allocation for IT and telecom sector stood at Rs. 97,579.05 crore (US$ 11.8 billion).
  • The government introduced the STP Scheme, which is a 100% export-oriented scheme for the development and export of computer software, including export of professional services using communication links or physical media.
  • The Karnataka government has signed three MoUs worth US$ 13.4 million (Rs. 100.52 crore) to help the state’s emerging technology sector.
  • The Department of Telecom, Government of India and Ministry of Communications, Government of Japan, signed a MoU to enhance cooperation in areas of 5G technologies, telecom security and submarine optical fibre cable system.

Products & Services offered by 3C IT SOLUTIONS

  • Infrastructure Solutions
    • End User & Devices
    • Data Center Solutions
    • Computer Accessories
    • Networking Solutions
    • IT Security Solutions
    • Audio Video Solutions
    • Power Solutions
  • Digital Business Solutions
    • MDM- Mobile Device Management
    • Business Software
    • Cloud Services
  • Consulting Solutions
    • FMS Solutions
    • IT Infrastructure
    • Renting Solutions
    • IT Managed Services Remote Infrastructure Management
    • Multi brand Hardware Break-Fix service (AMC)

Operational Strength

Business Verticals & Segments of 3C IT SOLUTIONS

INFRASTRUCTURE SOLUTIONS

As company continue to move towards a digital and cloud-based world, it is becoming increasingly important for businesses to invest in IT infrastructure solutions. Team 3C IT provides managed IT infrastructure solutions that can help businesses to improve their technological landscape by simplifying processes which brings amazing results.
At 3C IT, help enterprises by providing them with cost-effective and responsive IT infrastructure services. This helps in enhancing their operational efficiency, boosting performance, increasing productivity and accelerating the time-to-market with reduced cost.
Company provide managed IT solutions to businesses, which help them focus more on their core business instead of encountering technology issues in their day-to-day operations and management. Microsoft Azure, AWS, and Google Cloud are a few of our renowned technology partners, which aid us in providing effective infrastructure services on cloud to our associated enterprises.
We analyse the client’s systems, networks, and applications which are required to improve user satisfaction. We do rapid deployment of new networks or enhance existing networks to support key business initiatives.

DIGITAL BUSINESS SOLUTIONS

3C IT Solutions provides digital business solutions to suit its customers’ requirements. We offer industry specific productivity teller made on premises and cloud applications and software’s. We associate ourselves with vendors who have a strong suite of domain specific products developed and offer the same at the reasonable costs. We use this foundation to develop highly configurable SaaS and on premise software solutions based on their preferences and expectations.
Within Digital Solution offering – We Consult, We Analyse, We Program then we Deployee and Maintain.

With this we enable companies to modernize systems, meet evolving demands, and leverage new technologies that are the driving force behind a new technical revolution.
We have successfully served the following domains with the state-of-the-art digital solutions:

  • Collaboration & Communication Tools
  • Cloud Storage Solutions
  • Remote Project Management
  • Cybersecurity Solutions
  • Customer Relationship Management Solutions

what company offer:

  • Unified console that meets all device management needs.
  • Leverage built-in OS capabilities for a zero-touch enrolment experience.
  • Configure device settings and functions based on automatically assigned groups or departments.
  • Configure alerts, schedule custom reports, and troubleshoot devices without user intervention.
  • Deprovision devices manually or when preset conditions are met.

CONSULTING SOLUTIONS

IT facility management services take a load off Clients non-core activities, allowing Client to focus on his work. Every business organisation will have IT tasks that need to be managed on a regular basis.
These tasks may require hardware and other resources that are currently unavailable in the organisation.

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3C IT Solutions, as their trusted managed services provider (MSP serves as a complete IT team or supports your IT team by sharing the responsibility to execute some of the tasks. We provide both generalised and specific services.

We offer different levels of service or even customised packages. Problems in critical IT functions can give rise to unforeseen challenges for the Client’s business. We provide IT infrastructure monitoring, software configuration and updates, resource usage optimisation, user support and overall improvement of customers’ IT infrastructure and its elements.

This service offer below mentioned benefits to Customers:

  • Cash Flow Benefit
  • Minimum Downtime
  • Easy Upgradation at Minimum Cost
  • Protection against technology obsolescence
  • Save scrapping expenses, hassels & Loss
  • No In-house Staff Required for maintenance

Segment wise Revenue Brake-up

 Sr.No. Particulars31st December 2023F.Y2022-23F.Y2021-22F.Y2020-21
Amount (In lakhs)In%Amount (In lakhs)In%Amount (In lakhs)In%Amount (In lakhs)In%
1Infrastructure Solutions1956.1684.38%5674.5491.62%6220.8093.05%3752.0892.34%
2Digital Business Solutions24.721.07%24.830.40%22.830.34%100.392.47%
3Consulting Solutions337.5214.56%493.997.98%441.836.61%210.715.19%
 Total Revenue from operations2318.40100%6193.36100%6685.46100%4063.18100%

CUSTOMER BASE of 3C IT SOLUTIONS

Sr.No.ParticularsF.Y2022-23F.Y2021-22F.Y2020-21
Revenue (In Lakhs)In%Revenue (In Lakhs)In%Revenue (In Lakhs)In%
Infrastructure Solutions
1.Income from top5 customers2133.2137.59%1574.3625.31%1111.8929.63%
2.Income from top10 customers3013.0453.10%2300.2936.98%1801.7648.02%
Sr.No.ParticularsF.Y2022-23F.Y2021-22F.Y2020-21
Revenue (In Lakhs)In%Revenue (In Lakhs)In%Revenue (In Lakhs)In%
Digital Business Solutions
1.Income from top5 customer17.0768.75%13.5059.13%41.7741.61%
2.Income from top10 customer22.1989.37%18.2880.07%55.8955.67%
Sr.No.ParticularsF.Y2022-23F.Y2021-22F.Y2020-21
Revenue (In Lakhs)In%Revenue (In Lakhs)In%Revenue (In Lakhs)In%
Consulting Solutions
1.Income from top5 customer316.7964.13%349.0479%168.2979.87%
2.Income from top 10 customer 384.46 77.83% 398.76 90.25% 184.21 87.42%

Competition for 3C IT SOLUTIONS

In the course of our business operations, we operate in a competitive environment where we face competition from other companies that operate within the same geographic region as we do. Our competitors may have superior financial and other resources, which may provide them with a competitive advantage. The factors that determine the level of competition we face include the type, value, complexity and location of the project, as well as risks relating to revenue generation.

Although service quality, technical ability, performance record, experience, and safety records are important factors in clients’ decisions, price often becomes the primary consideration in most projects. In order to remain competitive, we have adopted best practices and strive to maintain high levels of safety, quality, and technical expertise in our operations.

Sr.No.List of Competitors*Location
1.Ilife IT Solutions Private Limited (Non-Listed)Pune
2.Monarch Technologies Private Limited (Non-Listed)Pune
3.Innovative Techhub Private Limited. (Non-Listed)Pune
4.C Dot Systems Private Limited. (Non-Listed)Pune
5.Shro Systems Private Limited (Non-Listed)Pune
6.Dev Information Technology Limited (Listed)Mumbai

Customers of 3C IT SOLUTIONS:

Smart Express Logistics and Shree Chanakya Group

Strengths & Weaknesses (SWOT Analysis) of 3C IT SOLUTIONS

Strengths:

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  • The company’s financial stability and market presence.
  • Strong relationships with customers and suppliers.
  • Expertise in IT solutions and telecom services.

Weaknesses:

  • Reliance on a limited number of suppliers for third-party products.
  • Need to expand the product portfolio to meet industry demands.

Opportunities:

  • Growing demand for IT and telecom services in India.
  • Potential for diversification into related sectors.

Threats:

  • Intense competition from other IT and telecom companies.
  • Regulatory changes impacting the industry.

Peers & Competitive Landscape

Name of CompanyCMPEPSP/E RatioRONW (%)NAV per Equity ShareFace Value (₹)Revenue from Operations (₹ in Lakh)
3C IT Solutions & Telecoms (India)Limited8.8727.73%113.8156,193.36
Peer-Group**       
Dev Information Technology Limited145.103.9536.7320.5719.17512,197.02

Qualitative Factors of 3C IT SOLUTIONS

  • Established and proven track record;
  • High standard of product quality and customer service;
  • Reputation;
  • Operation Methodology;
  • Offering a variety of products to meet the needs of different customers;
  • Experienced promoters and management team

Challenges & Risks

  • revenue is dependent on domestic market and we do not have any export revenue. Any adverse changes in the conditions affecting domestic market could adversely affect our business, results of operations and financial condition.
  • Any IT system failures or lapses on part of any of employees may lead to operational interruption, liabilities or reputational harm.
  • Most of business operations are in and from the state of Maharashtra. Due to this geographic concentration of our business operations, our results of operations and growth might be restricted to the economic and demographic conditions of Maharashtra. We are subject to risks associated with expansion into new geographic regions.
  • Company had negative cash flows in the past years, details of which are given below. Sustained negative cash flow could impact our growth and business

(Rs. in Lakhs)

ParticularsFor Period ended December31, 2023For the Financial Year ended on March 31
202320222021
Net Cash Used from Operating Activities1026.85-219.67-599.41122.67
Net Cash Used from Investing Activities-145.2847.481.66-6.82
Net Cash Generated from Financing Activities-865.87102.65519.681.13

Financial Health 

Key ratios

Ratio NameAs on31st December, 2023As on 31st March, 2023As on 31st March, 2022As on 31st March, 2021
Current Ratio2.082.011.561.35
Debt-Equity Ratio1.273.233.862.52
Debt Service Coverage Ratio0.330.451.231.12
Return on Equity Ratio0.110.260.430.56
Return on Capital employed0.250.260.210.36

Balance sheet

Sr.No.ParticularsNote No.As on 31st December,2023As on 31st March,2023As on 31st March,2022As on 31st March,2021
AEQUITY AND LIABILITIES     
1Shareholders’ funds     
 (a) Share capitalI.1216.0036.001.001.00
 (b) Reserves and surplusI.2244.26373.73259.65148.75
 (c) Share Application Money pending allotmentI.25.00
2Non-current liabilities 460.26409.73260.65154.75
 (a) Long-term borrowingsI.3306.751,061.16993.33352.75
 (b) Deferred tax liabilities (net)I.43.29
3Current liabilities 310.041,061.16993.33352.75
 (a) Short-term borrowingsI.5285.68278.6046.8745.47
 (b) Trade payablesI.6    
 (i) Total outstanding dues of micro enterprises and small enterprises; and 46.0512.1690.4934.52
 (ii) Total outstanding dues of creditors other than micro enterprises and sm 585.80905.171,839.741,024.25
 (c) Other current liabilitiesI.790.92103.89166.11181.70
 (d) Short-term provisionsI.8119.68115.4468.2842.47
   1,128.131,415.252,211.491,328.41
 TOTAL 1,898.432,886.143,465.471,835.90
BASSETS     
1Non-current assets     
 (a) Property, Plant and Equipment and Intangible assets     
 (i) Property, Plant and Equipment’sI.9160.5347.6224.3938.55
 (ii) Intangible assets 
 (iii) Capital work-in-progress 
 (iv) Intangible assets under development 
 (b) Other Non Current Asset 
 (c) Deferred tax assets (net)I.41.542.372.26
   160.5349.1626.7640.81
2Current assets     
 (a) InventoriesI.10699.981,582.961,624.44819.91
 (b) Trade receivablesI.11876.331,022.701,458.13650.16
 (c) Cash and cash equivalentsI.1245.1829.4899.03177.09
 (d) Short-term loans and advancesI.13115.15201.29256.01146.88
 (e) Other current assetsI.141.260.551.101.05
   1,737.902,836.993,438.711,795.09
 TOTAL 1,898.432,886.143,465.471,835.90

Profit & Loss

(Rs. in Lakhs)

ParticularsFor the period ended Dec 31, 2023March 31, 2023March 31, 2022March 31, 2021
Revenue from operations2,318.406,193.366,685.464,063.18
Other Income37.27100.128.650.34
Total Income2,355.666,293.486,694.114,063.52
EBITDA253.63419.53289.14202.48
PAT50.52113.62110.9085.93
PAT Margin (%)2.17%1.83%1.66%2.11%

Cash flow statement

(Rs .in Lakhs)

ParticularsFor Period ended December31, 2023For the Financial Year ended on March 31
202320222021
Net Cash Used from Operating Activities1026.85-219.67-599.41122.67
Net Cash Used from Investing Activities-145.2847.481.66-6.82
Net Cash Generated from Financing Activities-865.87102.65519.681.13

Capitalisation statement

(Figures in lakhs)

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ParticularsPre-Issue as on December31, 2023
Borrowings
Short- term285.68
Long- term (including current maturities) (A)306.75
Total Borrowings (B)592.43
Shareholder’s fund
Share capital216.00
Reserve and surplus, as restated244.26
Total Shareholder’s fund (C)460.26
Long- term borrowings / equity ratio{(A)/(C)}0.67
Total borrowings / equity ratio {(B)/(C)}1.29

Future Potential & Investor Insights:

Roadmap for Future & Growth

India is the topmost offshoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India.

The Indian IT & business services industry is expected to grow to US$ 19.93 billion by 2025. Spending on information technology in India is expected to reach US$ 144 billion in 2023. By 2026, widespread cloud utilisation can provide employment opportunities to 14 million people and add US$ 380 billion to India’s GDP.
As per a survey by Amazon Web Services (2021), India is expected to have nine times more digitally skilled workers by 2025. IT spending in India is expected to increase to US$ 110.3 billion in 2023 from an estimated US$ 81.89 billion in 2021.
In November 2021, Mr. Piyush Goyal, Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, lauded the Indian IT sector for excelling its competitive strength with zero government interference. He further added that service exports from India has the potential to reach US$ 1 trillion by 2030.

IPO Details

3C IT Solutions and Telecoms (India) Limited IPO Dates

EventDate
Issue Size (Fresh issue)₹ 11.44 Cr
Price Band₹ 52 per share
Lot size2000 shares
IPO Open DateTuesday, June 4, 2024
IPO Close DateFriday, June 7, 2024

Why need funds

ParticularsEstimated Amt (₹ in Lakhs)
Funding Working Capital Requirements of our Company385.79
Repayment/ Prepayment of Certain Borrowings availed by our Company243.52
General Corporate Purpose#
To meet issue expenses

Optional Sections

Shareholding Pattern of 3C IT SOLUTIONS

Name of the ShareholderPercentage of the pre-Offer Equity Share Capital (%)
Ranjit Kulladhaja Mayengbam65.89%
Gangarani Devi Mayengbam6.11%
Gold Circle Venture Partners LLP28%
Total100%

Litigation involved in 3C IT SOLUTIONS:

Refer DRHP page no.s of 228-231 

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