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GEODESIC LTD
UNRATED (RS70, MCAP: RS6.3BN / US$138MN)
• Incorporated in 1999, Geodesic is a software-focused company offering unified communications tools related to CRM
applications for enterprises. One of its principal products, Geoamida, a biometric reader, is being used in several
eGovernance and financial inclusion projects. It has also developed social networking, voice messaging and
entertainment applications for retail subscribers. Geodesic’s growth has been aided by its ability to develop innovative
products for various consumer segments. The advent of 3G services and eGovernance projects in India are near-term
catalysts of growth.
• Business segments: Geodesic develops products or applications for two customer segments: I) Enterprise (including
government bodies), and ii) retail. With an employee base of 700+, it serves 148 enterprise customers across 12
countries in addition to the retail segment. Retail mix is expected to go up from 14% to 25% by FY13.
• Enterprise communication tool: A host of financial services companies in India and abroad like CLSA HK, IDFC,
Edelweiss, Daiwa, IIFL, Samsung Investments, etc, use Geodesic’s software and services based on Spyder
technologies. This unified communication tool embedded with the CRM product helps enterprises to analyze call logs
and saves communication costs by up to 40%.
• Mundu platform and other offerings: Geodesic launched the ‘mundu’ series of products to utilize the mobile
communication platform: 1) ‘mundu’ IM, an instant messenger suite; 2) ‘mundu’ SMS, with which the company
delivers ~400m SMS/year; 3) ‘mundu’ Radio (100+ channels) and mundu.TV (subscription-based mobile TV); and 4)
‘Spokn’, which is a mobile application for voice messaging and Internet telephony on the go, allows users to retain
international numbers (in 8 countries currently). All calls in India pass through Bharti Airtel’s network, while the
company has tie-ups with six international operators for its global services.
• Geoamida – the biometric device: Various versions of Geoamida – the biometric device developed based on the
Simputer technology, are being used in eGovernance (UID, PDS), financial inclusion and transportation (traffic police,
parking management). The estimated demand for the device is 4m over the next 2-3 years. Each device is priced at
~Rs20,000, with an estimated EBITDA margin of ~35%.
• Strong growth to continue: Geodesic reported FY10 revenues of Rs6.4bn with an operating margin of 43% (Rs2.8bn)
and net profit margin of 35% (Rs2.2bn). H1FY11 revenue and net profit were Rs4.1bn (up 30% yoy) and Rs1.6bn (41%
yoy) respectively. Geodesic is confident about maintaining 30-35% growth over the next 2-3 years with margins of 52-
55%. It has Rs9bn in cash reserves, as against outstanding FCCBs of Rs6.7bn.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
GEODESIC LTD
UNRATED (RS70, MCAP: RS6.3BN / US$138MN)
• Incorporated in 1999, Geodesic is a software-focused company offering unified communications tools related to CRM
applications for enterprises. One of its principal products, Geoamida, a biometric reader, is being used in several
eGovernance and financial inclusion projects. It has also developed social networking, voice messaging and
entertainment applications for retail subscribers. Geodesic’s growth has been aided by its ability to develop innovative
products for various consumer segments. The advent of 3G services and eGovernance projects in India are near-term
catalysts of growth.
• Business segments: Geodesic develops products or applications for two customer segments: I) Enterprise (including
government bodies), and ii) retail. With an employee base of 700+, it serves 148 enterprise customers across 12
countries in addition to the retail segment. Retail mix is expected to go up from 14% to 25% by FY13.
• Enterprise communication tool: A host of financial services companies in India and abroad like CLSA HK, IDFC,
Edelweiss, Daiwa, IIFL, Samsung Investments, etc, use Geodesic’s software and services based on Spyder
technologies. This unified communication tool embedded with the CRM product helps enterprises to analyze call logs
and saves communication costs by up to 40%.
• Mundu platform and other offerings: Geodesic launched the ‘mundu’ series of products to utilize the mobile
communication platform: 1) ‘mundu’ IM, an instant messenger suite; 2) ‘mundu’ SMS, with which the company
delivers ~400m SMS/year; 3) ‘mundu’ Radio (100+ channels) and mundu.TV (subscription-based mobile TV); and 4)
‘Spokn’, which is a mobile application for voice messaging and Internet telephony on the go, allows users to retain
international numbers (in 8 countries currently). All calls in India pass through Bharti Airtel’s network, while the
company has tie-ups with six international operators for its global services.
• Geoamida – the biometric device: Various versions of Geoamida – the biometric device developed based on the
Simputer technology, are being used in eGovernance (UID, PDS), financial inclusion and transportation (traffic police,
parking management). The estimated demand for the device is 4m over the next 2-3 years. Each device is priced at
~Rs20,000, with an estimated EBITDA margin of ~35%.
• Strong growth to continue: Geodesic reported FY10 revenues of Rs6.4bn with an operating margin of 43% (Rs2.8bn)
and net profit margin of 35% (Rs2.2bn). H1FY11 revenue and net profit were Rs4.1bn (up 30% yoy) and Rs1.6bn (41%
yoy) respectively. Geodesic is confident about maintaining 30-35% growth over the next 2-3 years with margins of 52-
55%. It has Rs9bn in cash reserves, as against outstanding FCCBs of Rs6.7bn.
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