Phantom Digital Effects Limited

Hi Aksh,
There are few factors mentioned below

1. So this majorly depends on the ability of promoter and their marketing team to get new clients and their relationship with producers, studios so that they can get the work again

2. They retain 8 out of 10 clients which come to them so they get repetitive orders from their previous clients. Their top 10 client as on june 2022

   

3. There is also a function of size here, So as you get bigger and bigger you start getting qualified to work for big international players and ott players like they are now an amazon approved vendor, they received recognition form walt disney, approved as a vendor for DNEG. They are also a go to vendor for Netflix india ( as per the concall)

4. They are expanding and opening more offices internationally. Now they are planning to open one in Vancouver which will not only be for front ending but will also do VFX work. They recently incorporated their subsidiary in London and they are planning to take their headcount to 2000 in next few years.

   

5. They also said that they are a creative studio and not a skill base studio (the difference is explained above) So as per the management majority of Indian companies are skill based so this differentiates them for rest of the companies. They are a TPN certified company which also differentiates them form rest of the small companies.

6. The overall industry is growing at such a rapid pace that there is enough for all of them. Like DNEG is expecting 25% growth between 2022 and 2025 so the pie is increasing and as said india only accounts for 5% of the global market share hence huge opportunity.

7. They already have a strong order book of 70cr which they would execute in next 9 months.

So these are basically all the factors on how they will get new orders and how they would keep growing despite lot of competition.