Table of content
Diensten Tech Introduction
- DTL is an IT service organization with a focus on professional services, corporate training (including eLearning digital content solutions), and managed services.
- Their mission is to provide business benefits to customers and prospects by delivering high-quality solutions at competitive rates1
Brief about Diensten Tech (DTL)
Summary of the business of Diensten Tech (DTL)
Started business under the name of JKT Consulting Limited with consulting services in the area of SAP Software/ SAP Training Centers and Domain Consulting Services. From the year 2014-15 onwards, we started shifting our business focus towards Information Technology Consultancy, Training, Software Sale, Software AMC and related services as our core business.
History of Diensten Tech (DTL)
- Company was incorporated on March 06, 2007 as a public company, the name and style of “JKT Consulting Limited”
- Subsequently the name of Company was changed to “Diensten Tech Limited” on dated May 11, 2021
| Year | Event |
| 2022 | Acquisition of PS & T division of JK Technosoft Limited. |
| 2023 | Execution of Business Transfer Agreement for Acquisition of Specific Customers from M/sKlaus IT Solutions Pvt Ltd. |
| 2023 | Execution of Business Transfer Agreement for Acquisition of Specific Customers with M/sSkanda IT Solutions Private Limited. |
Holding company of Diensten Tech (DTL)
Company is subsidiary of JK Traders Limited which is holding 68% of the shareholding of company
Promoters & Board of Directors of Diensten Tech (DTL)
The promoters of “Diensten Tech limited” Company are J. K. Traders Limited, Mr. Abhishek Singhania, Mr. Vipul Prakash and Ms. Tina Prakash
Board of directors of Diensten Tech (DTL)
| Name | Designation |
| Mr. Abhishek Singhania | Director |
| Mr. Sanjay Kumar Jain | Director |
| Mr. Vipul Prakash | Managing Director |
| Mr. Satish Chandra Gupta | Director |
| Ms. Sunaina Primlani Gera | Independent Director |
| Ms. Kanika Vaswani | Independent Director |
| Mr. Manoj Kumar | Director |
Share Holding pattern of Diensten Tech (DTL)
| Promoters | % of holding |
| J.K. Traders Limited | 68% |
| Mr. Vipul Prakash | 13.75% |
| Ms. Tina Prakash | 13.75% |
| Mr. Abhishek Singhania | Negligible |
| Total – A | 95.50% |
| Public | 4.5% |
Qualitative Factors of Diensten Tech (DTL)
- Clients diversified into various industries.
- Company have Pan-India presence and our business is significantly scalable.
- Company provide quality assured services and keep significant focus on customer satisfaction.
- Company have experienced management which is supported by skilled professionals
Strategy of Diensten Tech (DTL)
- Further widening of our customer base
- Focus on cost management
- Focus on cordial relationship with our customer and employees
Industry Outlook
The IT & BPM sector has become one of the most significant growth catalysts for the Indian economy, contributing significantly to the country’s GDP and public welfare. The IT industry accounted for 7.4% of India’s GDP in FY22, and it is expected to contribute 10% to India’s GDP by 2025.
As innovative digital applications permeate sector after sector, India is now prepared for the next phase of growth in its IT revolution. India is viewed by the rest of the world as having one of the largest Internet user bases and the cheapest Internet rates, with 76 crore citizens now having access to the Internet.
The current emphasis is on the production of significant economic value and citizen empowerment, thanks to a solid foundation of digital infrastructure and enhanced digital access provided by the Digital India Programme. India is one of the countries with the quickest pace of digital adoption. This was accomplished through a mix of government action, commercial innovation and investment, and new digital applications that are already improving and permeating a variety of activities and different forms of work, thus having a positive impact on the daily lives of citizens.
India’s rankings improved six places to the 40th position in the 2022 edition of the Global Innovation
Index (GII).
MARKET SIZE
- According to the National Association of Software and Service Companies (Nasscom), the Indian IT industry’s revenue touched US$ 227 billion in FY22, a 15.5% YoY growth and was estimated to have touched US$ 245 billion in FY23.
- In 2022, the Indian domestic IT & Business Services market was valued at US$ 13.87 billion and recorded a 7.4% year-over-year (YoY) growth as compared to 7.2% in 2021.
- IT spending in India is expected to increase to US$ 110.3 billion in 2023 from an estimated US$ 81.89 billion in 2021.
- The Indian software product industry is expected to reach US$ 100 billion by 2025. Indian companies are focusing on investing internationally to expand their global footprint and enhance their global delivery centres.
- The data annotation market in India stood at US$ 250 million in FY20, of which the US market contributed 60% to the overall value. The market is expected to reach US$ 7 billion by 2030 due to accelerated domestic demand for AI.
- India’s IT industry is likely to hit the US$ 350 billion mark by 2026 and contribute 10% towards the country’s gross domestic product (GDP), Infomerics Ratings said in a report.
- As an estimate, India’s IT export revenue rose by 9% in constant currency terms to US$ 194 billion in FY23.
- The export of IT services has been the major contributor, accounting for more than 53% of total IT exports (including hardware).
- BPM and engineering and R&D (ER&D) and software products exports accounted for 22% and 25%, respectively of total IT exports during FY23.
- Exports from the Indian IT industry stood at US$ 178 billion in FY22. The export of IT services was the major contributor, accounting for more
- than 51% of total IT exports (including hardware). BPM and engineering and R&D (ER&D) and software products export accounted for 20.78% each of total IT exports during FY21. The ER&D market was expected to grow to US$ 42 billion by 2022.
- The IT industry added 2.9 lakh new jobs taking the industry’s workforce tally to 5.4 million people in FY23.
ROAD AHEAD
- 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 in its competitive strength with zero government interference. He further added that service exports from India have the potential to reach US$ 1 trillion by 2030.
Indian Staffing Industry Overview
- India’s unemployment rate rose to a three-month high of 7.8% in March 2023. The unemployment rate had surged to 8.3% in December 2022 but declined slightly to 7.14% in January 2023 before rising again to 7.45% in February 2023.The unemployment rate in urban areas was particularly high at 8.4% in March 20235.
- Formal and informal mentoring programs, aimed at fostering professional development among employees, are gaining popularity within technology companies. Notably, the educational background of informal employees differs significantly from that of formal employees, with only 50% of informal workers holding qualifications of SSC + Tech Diploma or lower, compared to 75% of formal employees who possess graduate degrees or higher. Consequently, mentoring initiatives and professional networking opportunities hold particular importance for the growth and advancement of blue-collar workers.
- The Indian flexi staffing industry added 78,000 jobs in July-September 2022, up 6 per cent as compared to the previous quarter, on account of rise in demand across all sectors, a report said. “Buoyed by a strong festive season and rising demand across sectors, the Indian Staffing Federation (ISF) members added 78,000 new jobs in July-September quarter, a 6 per cent rise in new jobs over previous April-June quarter,” said ISF’s Flexi Staffing Employment Growth report. The new jobs in July-September are a combination of new jobs in general staffing and IT staffing, it stated. ISF is the apex industry body representing formal staffing, facility management and security services companies. New jobs in general staffing – which excludes IT staffing – grew 7.3 per cent in July-September, driven by the rise in demand in FMCG, e-commerce, manufacturing, retail, logistics, banking, hospitality, tourism, insurance, infrastructure, it stated. On the other hand, new jobs in IT staffing remained under pressure, growing a modest 2.2 per cent in the September quarter. While IT staffing industry continues to address market demands in niche skills, there is a visible impact of the slowdown in global markets even as big Indian IT players curtail new hiring, it stated.
Business Data of Diensten Tech (DTL)
Services given from Diensten Tech (DTL)
- IT Professional Solution Services
- Corporate Training
Product wise break-up
(Rupees in Lakh)
| Segment | 31-03-21 | % | 31-03-22 | % | 31-03-23 | % | 31-12-23 | % |
| IT Professional Solution Services | 484.12 | 92.53 | 22.83 | 31.53 | 3,316.52 | 88.38 | 2,450.38 | 93.95 |
| Corporate Training | 39.08 | 7.47 | 49.58 | 68.47 | 420.22 | 11.20 | 139.88 | 5.36 |
| Sale of Goods | – | – | – | – | 15.94 | 0.42 | 17.83 | 0.68 |
| Total Sales | 523.20 | 72.41 | 3,752.68 | 2,608.09 |
Customer dependency
Top ten customers contribute approximately 88% of revenues for the financial period ended December 31, 2023. Any loss of business from one or more of them may adversely affect revenues and profitability.
Competition
We operate in an industry where most of our competition comes from large but not specialized professional’s service outsourcing companies, there are a few players who specialise in IT Professionals Services outsourcing besides us. Our differentiator is that besides staffing we also provide training services. The IT Professionals Services industry in India and globally is highly fragmented comprising of thousands of firms employing millions of people and generating billions of Indian rupees in annual revenues. In most areas, no single company has a dominant share of the employment services market. The size of market is so vast that it cannot be possible for only few companies to capture the entire market. We compete against a variety of regional, national or international companies. Our client mix consists of both small, medium, large size businesses and large national/multinational clients. We are developing our market based upon our local, regional and national presence and building relationship with our clients accordingly. In India this industry is growing significantly due to change in business scenarios, labour law and labour reforms and due to globalization. Although it is a competitive industry, still it is reflecting several trends in the Indian marketplace such as the notably increasing demand for skilled people, employers’ desire for more flexible working models and consolidation among clients and in the employment services industry itself.
Peer companies comparison with Diensten Tech (DTL)
(Amount in Lakhs except %ages)
| Key Financial Performance | Diensten Tech Limited | ANI Integrated Services Limited | Integrated Personnel Services Limited | ||||||
| 31-03-2023 | 31-03-2022 | 31-03-2021 | 31-03-2023 | 31-03-2022 | 31-03-2021 | 31-03-2023 | 31-03-2022 | 31-03-2021 | |
| Revenue from operations | 3,752.68 | 72.41 | 523.20 | 15,729.86 | 14,332.05 | 10,177.32 | 16,873.20 | 14,270.00 | 11,884.44 |
| EBITDA | 149.24 | 18.53 | 200.32 | 360.99 | 717.04 | 501.30 | 598.29 | 499.18 | 384.22 |
| EBITDA Margin (%) | 3.98 | 25.59 | 38.29 | 2.29 | 5.00 | 4.93 | 3.55 | 3.50 | 3.23 |
| PAT | 16.06 | 1.45 | 117.07 | 246.62 | 545.98 | 464.68 | 335.37 | 274.90 | 155.54 |
| PAT Margin (%) | 0.43 | 2.00 | 22.38 | 1.57 | 3.81 | 4.57 | 1.99 | 1.93 | 1.31 |
| Name of the company | Diensten Tech Limited | ANI Integrated Services Ltd | Integrated Personnel Services Ltd |
| Face Value (in Rs. per share) | 10 | 10.00 | 10.00 |
| CMP | 100 | 152.90 | 159.95 |
| P/E Ratio | 345 | 59.96 | 28.01 |
| RONW (%) | 3.78 | 5.26 | 11.92 |
| EPS (Rs. Per Share) | 0.29 | 2.55 | 5.71 |
| NAV (Rs. Per Share) | 7.02 | 48.44 | 39.03 |
| Total Income (Rs. In Lakhs) | 3760.31 | 15,829.85 | 16,921.42 |
Group companies
- JK Technosoft Limited
Business risk factors
- The Company has incurred Losses during the nine months period ended on December 31, 2023
- Top ten customers contribute approximately 88% of revenues for the financial period ended December 31, 2023. Any loss of business from one or more of them may adversely affect revenues and profitability.
- Company has had negative cash flows from its operating activities, investing activities as well as financing activities in the past years, details of which are given below. Sustained negative cash flow could impact growth and business.
Financials
Key Performance indicators
(Rs. In Lakh except EPS)
| Particulars | December 31, 2023 | year ended March 31 | ||
| 2023 | 2022 | 2021 | ||
| Share Capital | 605.26 | 605.26 | 336.26 | 86.00 |
| Net Worth | 253.34 | 425.05 | 139.99 | -111.72 |
| Revenue (Operational) | 2,608.09 | 3,752.68 | 72.41 | 523.20 |
| Profit after Tax | (171.70) | 16.06 | 1.45 | 117.07 |
| Earnings per share | ||||
| – Basic | (2.84) | 0.29 | 0.16 | 13.61 |
| – Diluted | (2.84) | 0.29 | 0.16 | 13.61 |
| Net Asset Value per Equity Share (in Rs.)** | 4.19 | 7.02 | 15.90 | (12.99) |
| Total borrowings | ||||
| – Long Term | 1,015.00 | – | – | – |
| – Short Term | 832.67 | 280.00 | – | 344.12 |
Balance Sheet
| Particulars | As at | |||
| 31-Dec-23 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 | |
| Total Equity and Liabilities | 3,019.89 | 1,504.81 | 203.66 | 370.24 |
| Assets | ||||
| Non- current assets | ||||
| Property, plant and equipment and intangible assets | ||||
| – Property, plant and equipment | 34.33 | 16.50 | 0.38 | 0.47 |
| – Intangible assets | 371.99 | 458.32 | – | – |
| – Intangible assets under development | 43.86 | – | – | – |
| Deferred tax assets (net) | 75.61 | 10.35 | 3.99 | 18.85 |
| Long term loans and advances | 1,015.00 | – | – | – |
| Other non current assets | 83.33 | 82.60 | 97.32 | 96.28 |
| Current assets | ||||
| Trade receivables | 1,169.51 | 533.63 | 60.48 | 95.79 |
| Cash and cash equivalents | 0.94 | 62.23 | 22.98 | 91.30 |
| Short term loans and advances | 38.70 | 2.90 | 0.18 | 0.03 |
| Other current assets | 186.62 | 338.28 | 18.33 | 67.52 |
| Total Assets | 3,019.89 | 1,504.81 | 203.66 | 370.24 |
Profit & Loss
(Amount in Lakhs except % ages)
| Key Financial Performance | December 31, 2023 | 31-03-2023 | 31-03-2022 | 31-03-2021 |
| Revenue from operations | 2,608.09 | 3,752.68 | 72.41 | 523.20 |
| EBITDA | (118.42) | 149.24 | 18.53 | 200.32 |
| EBITDA Margin (%) | (4.54) | 3.98 | 25.59 | 38.29 |
| PAT | (171.70) | 16.06 | 1.45 | 117.07 |
| PAT Margin (%) | (6.58) | 0.43 | 2.00 | 22.38 |
Cash Flow
(Rs. In Lakh)
| Particulars | April 01, 2023 to December 31,2023 | year ended on March | ||
| 2023 | 2022 | 2021 | ||
| Net Cash Generated from Operating Activities | (495.65) | (266.97) | 38.50 | 171.63 |
| Net Cash Generated From Investing Activities | (1,081.89) | (209.59) | 14.22 | (1.08) |
| Net Cash Generated from Financing Activities | 1,516.96 | 516.03 | (110.04) | (99.75) |
Capital structure
(Amount Rs. in Lakh, unless otherwise stated)
| Particulars | Pre offer as at December 31,2023 |
| Borrowings: | |
| Long term borrowings | 1015.00 |
| Short term borrowings | 832.67 |
| Total borrowings | 1847.67 |
| Equity: | |
| Equity share capital | 605.26 |
| Reserves and surplus | -351.92 |
| Total equity | 253.34 |
| Ratio: Total borrowings/ Total equity | 7.29 |
SWOT
- Strengths:
- Strong annual EPS growth.
- Effective utilization of shareholders’ funds (improving return on equity over the last two years).
- Improving book value per share.
- Weaknesses:
- Unfortunately, specific weaknesses for Diensten Tech Limited are not available in the provided data.
- Opportunities:
- Opportunities are not explicitly listed for this stock.
- Threats:
- Threats are also not explicitly mentioned for Diensten Tech Limited.
IPO Details
Diensten Tech IPO Details
| Detail | Information |
|---|---|
| Issue Type | SME IPO |
| Offer Size | ₹22.08 Crore |
| Face Value | ₹10 per Share |
| Price Band | ₹95 – ₹100 per Share |
| Market Lot | 1,200 Shares |
| Open Date | June 26, 2024 |
| Close Date | June 28, 2024 |
| Stock Exchange | NSE SME |
Ipo funds utilisation for
| Particulars | Amount (In Rs. Lakh) |
| Payment of liability raised against outstanding payment of consideration for “Professional Services and Training Division” business acquired from J K Technosoft Limited, vide Business Transfer Agreement Dated April 30, 2022. | 381.03 |
| Working Capital Requirement | 1,176.97 |
Litigation involved
Gray Market Premium
Latest posts
- Barflex Polyfilms IPO Review (Read Before Buy) – Equity360View
- Sat Kartar Shopping IPO Review (Apply) – Equity360View
- Fabtech Technologies IPO Analysis : Don’t Buy Until You Read This Warning
- Leo Dryfruits IPO Analysis : Is the Hype Justified Always ?
- Indo Farm Equipment IPO Analysis. Is it a Risky Bet?
Leave a Reply