I tried researching companies which are in this business. Scale of some of the companies is too small with revenue less than 4-5 cr. There are some companies which have mentioned they are providing laptop rental services on their website. But I guess that is small part of their business, as these companies are bigger than Silicon, but have lesser EBITDA Margins (<15-20%). Some of the companies , I did not get any information.
At the end, after researching a lot of companies, I only found two companies which are similar to Silicon. These companies have larger client base and reputed customers than Silicon.
| Competitors | RAC Infra rental | Sumo Technologies | Silicon Rental | Silicon Rental |
|---|---|---|---|---|
| Year of incorpoaration | 2014 | 2005 | 2016 | 2016 |
| Registered Offcie | Mumbai | Bangalore | Mumbai | Mumbai |
| Clients | 2000+ clients, 600 active clients, coco-cola, HDFC, ICICI, Kotak, Glenmark, JSW , Indian oil, DHL, Loreal, etc | 2000+ ABB, IFB, Ingersroll, Kirloskar, Schneider, Mahindra satyam, Wipro, TCS, Accenture, Mpahsis, HCL, etc | 1000+ | 1000+ |
| Assets deployed | 50000 | 50000 | ||
| Financial year | FY2021 | FY2022 | FY2022 | FY2023 |
| Revenue - FY2022 in cr | 62.26 | 33.45 | 25 | 36 |
| EBITDA | 41.77 | 16.58 | 19 | 30 |
| EBITDA Margins | 67.1% | 49.6% | 76.0% | 83.3% |
| Employee expense | 8.43 | 5.34 | 1.28 | 2.11 |
| Employee expense % of TOI | 13.5% | 16.0% | 5.1% | 5.9% |
| PAT | 16.35 | 5.66 | 10 | 11 |
| PAT % | 26.3% | 16.9% | 40.0% | 30.6% |
| Debtor days | 99 | 71 | 84 | 80 |
Employee expenses are much less for Silicon. What seems interesting is EBITDA Margins are higher for Silicon. Is it because, since the other two companies have reputed clients, their bargaining power may be slightly lesser? That’s brings us to the question, why Silicon do not have reputed clients especially IT companies and BFSI companies? May be they are targetting different customers or not able to convert these customers?
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