Geospatial sector – Sunrise Opportunity

There are several like bidassist, tendertiger, tendersontime etc. Please use google or chatgpt (ask “where can i find indian govt tenders?” and then ask “any third party portals?” if it gives the govt. portals to get an idea of third party portals)

I think 3.5 lakhs would be par for the course in this industry. This isn’t TCS or Infosys. The work is operation heavy both on ground and in processing. They would have lot of freshers in processing work and skilled manual labour in operations. To compare, check what it is with a competitor like Genesys. Exactly same 3.5 lakhs (0.35 million) for men and would likely be lower if both men and women were included as one as female remuneration is 2.6 lakhs.

Source: Genesys AR

As for why it was low during Covid, if I remember right, they had lot of contract workers then and were probably paying less as there was no business with govt happening during Covid in ’20 and ’21. It is mentioned in one of the AGMs.

I suspect the negative working capital has more to do with your calculation than reality.

For a company like ceinsys, there’s a lot of “project and other operating expenses” and “other expenses” on which they might be able to pay the vendors after the govt. pays them (which is where the 50 Cr payables comes from which is ~15% of total expenses). However, most DPO calculations take this

In this COGS for Ceinsys won’t include a bulk of the project cost and other opex.

So it will look like DPO is high when its not. When DPO is high, of course you will see negative working capital (R + I – P) but that’s not the real story. In reality It would be positive. I dont think its abnormal.

Receivables though are what we should keep an eye on in a business facing the govt.

These are the receivable days as per screener and I think its more or less accurate on this. It is on a good trajectory.

247 → 153 → 154 → 143

Mr. Kamat has mentioned in one of the calls that 120 days is what they will strive for but it cannot get better than that as they aren’t a software company to have < 90 days receivables

These sort of questions I think you can find answers through Google, ARs, concalls if you put in a bit of effort.

After the last post, I found one more tender where Ceinsys is L1. System Integrator SI for Monitoring Infrastructure Projects using IDDP for MMRDA

So I think along with confirmed order book of 1150 Cr, there is ~500 Cr of L1 as well from the two orders.