NIKS Technology
Profile of the company
The company started its operations way back in the year 2014 in the name of Niks Technology. It is an IT solution services enabling company implementing standard practices and maintaining quality services across all verticals; it is committed to deliver high quality services like digital marketing, software development, mobile app development, website development, moreover it provides classroom training and certification courses to students during their summer and winter breaks. This training is been provided through online and offline mode.
The company continuously evolves its services and customizes its offerings as per the need of its clients. Its evaluation team ensures adaptation of the best-of-breed tools and technologies for effective Service to its clients. In today’s digital Business world, you need a partner who can help you take advantage of marketing opportunities across a variety of channels in real-time. The company combines a data-driven approach with knowledge gained from years in digital marketing to deliver outstanding results to its clients. Niks with its foundation pillars as Innovation, Information and Intelligence is exploring indefinitely as a Technology Service Provider and as a Training Organization. A professional approach and constant interaction ensure client requirement is met with high standard within the agreed guideline of time and cost. Its impressive growth has been largely due to confidence in its own capability and impressive infrastructure it has created over the years. The company has been steadily diversifying as well as adding new products to its portfolio, besides adding additional infrastructure.
The company has a diversified product portfolio, which primarily caters to growing IT services sector but not limiting to it the company carter the need of students through its skill enhancement and value addition courses. It provides the courses at its education centres. It provides an improved product mix to its customers and their preferences thereby targeting a wider customer base. Its growth is further driven by its ability to make available an assortment of quality products under trusted brands built by the company. A failure to maintain quality standard can prove to be extremely detrimental to the business of the company. It give quality the utmost priority at all stages, to ensure its customers are thoroughly satisfied.
Proceed is being used for:
Industry overview
The global sourcing market in India continues to grow at a higher pace compared to the IT-BPM industry. India is the leading sourcing destination across the world, accounting for approximately 55% market share of the $ 200-250 billion global services sourcing business in 2019-20. Indian IT & BPM companies have set up over 1,000 global delivery centres in about 80 countries across the world. India has become the digital capabilities hub of the world with around 75% of global digital talent present in the country. IT-BPM industry’s revenue was estimated at around $191 billion in FY20, growing at 7.7% y-o-y. It is estimated to reach $ 350 billion by 2025. Moreover, revenue from the digital segment is expected to form 38% of the total industry revenue by 2025. Digital economy is estimated to reach Rs. 69,89,000 crores ($1 trillion) by 2025. The domestic revenue of the IT industry was estimated at $ 44 billion and export revenue was estimated at $147 billion in FY20.Total number of employees grew to 1.02 million cumulatively for four Indian IT majors (including TCS, Infosys, Wipro, HCL Tech) as on December 31, 2019. Indian IT industry employed 205,000 new hires, up from the 185,000 jobs added in FY19 and had 884,000 digitally skilled talents in 2019.
Indian IT's core competencies and strengths have attracted significant investment from major countries. The computer software and hardware sector in India attracted cumulative foreign direct investment (FDI) inflow worth $ 45.97 billion between April 2000 and June 2020. The sector ranked 2nd in FDI inflows as per the data released by Department for Promotion of Industry and Internal Trade (DPIIT). Leading Indian IT firms like Infosys, Wipro, TCS and Tech Mahindra are diversifying their offerings and showcasing leading ideas in blockchain and artificial intelligence to clients using innovation hubs and research and development centres to create differentiated offerings. 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 industry is expected to grow to $350 billion by 2025 and BPM is expected to account for $50 55 billion of the total revenue.
Pros and strengths
Quality service: The company has a set of standards for itself when it comes to timeliness and quality of service it provides to its customers. The stringent systems ensure that all the products reach its customers on stipulated time and there are minimum errors to ensure reduced product rejection. Its quality service for the last 6 years has earned it a goodwill from its customers, which has resulted in customer retention and order repetition. It has also helped it to add to its existing customer base. It has developed internal procedure of checking the client orders at each stage from customer order to closer of the service. Its company focuses on maintaining the level of consistently in its service, thereby building customer loyalty for its Brand.
Develops new course content with market scenario: The company is continue developing new course content according requirement of the market. As per the market scenario it has launched courses like Ethical hacking & cyber security, Embedded system & robotics, Digital marketing, Android application development, Internet of things (IOT), Machine learning.
Needs of customers: The company has a system in place which has attained high level of knowledge about the needs of its customers, resulting from continuous two-way communication between its representatives and customers. It has a team of individuals who are constantly analyzing the market scenario and study its customer’s requirements. It try to cater to its customer’s requirements by offering them a vast basket of product range. Its experience combined with its professionalism and capacity to deliver has helped it to grow at a steady rate in the last 7 years. Its aim is to earn customer's trust and confidence through personal attention, passion for what it does and commitment to long-lasting relationship. It is prepared to go an extra mile to deliver to its customers’ a measurable business value and help them adopt and succeed in the industry.
Risks and concerns
Depends on top five and ten customers: The company’s top five and ten customers contribute to a substantial portion of its revenues for the year ended January 31, 2021. Any decline in its quality standards, growing competition and any change in the demand for its service by these customers may adversely affect its ability to retain them. It has maintained good and long-term relationships with its customers. However, there can be no assurance that it will continue to have such long-term relationship with them, also any delay or default in payment by these customers may adversely affect its business, financial condition and results of operations. It cannot assure that it will generate the same quantum of business, or any business at all, from these customers, and loss of business from one or more of them may adversely affect its revenues and profitability.
Requires significant amounts of working capital: The company’s business is working capital intensive. A significant portion of its working capital is utilized towards trade receivables. It intends to continue growing by expanding its business operations. This may result in increase in the quantum of current assets particularly trade receivables. Its inability to maintain sufficient cash flow, credit facility and other sources of fund, in a timely manner, or at all, to meet the requirement of working capital could adversely affect its financial condition and result of its operations.
Face intense competition: The company compete with a number of entities that provide similar services in each of the business lines in which it operates. Its competitors may be able to respond more quickly to new or changing opportunities, technologies, and client requirements and may offer better technological services, more attractive terms to clients and adopt more aggressive pricing policies than it will be able to offer or adopt. In addition, it expects that the markets in which it competes will continue to attract new competitors and new technologies, including international providers of services similar to its. It competes on the basis of a number of factors, including execution, depth of product and service offerings, innovation, reputation, price and convenience. Its competitors may have advantages over it.
Outlook
Incorporated in 2014, NIKS Technology is an IT solution service provider company. The business offers a range of services i.e. Digital Marketing, Software Development, website development, mobile app development, and classroom training and certification courses to students via offline and online routes. Its diversified product portfolio caters to the growing demand of the IT sector. It provides an improved product mix to its customers and their preferences thereby targeting a wider customer base. Its growth is further driven by its ability to make available an assortment of quality products under trusted brands built by the company. The company is managed by a team of experienced and professional personnel, exclusively focused on different aspects of the industry. It is committed to designing process based on customer insights, team wisdom and continuous improvement. Additionally, there is an audit process to check for adherence to process. On the concern side, the company requires a number of approvals, licenses, registrations and permits in ordinary course of its business. Additionally, it needs to apply for renewal of approvals which expire, from time to time, as and when required in the ordinary course. It operates in a capital-intensive industry, which requires substantial levels of funding. It will continue to incur significant expenditure in maintaining and growing its existing infrastructure.
The company is coming out with an IPO of 1,00,200 equity shares of Rs 10 each at a fixed price of Rs 201 per equity share to mobilize Rs 2.01 crore. On the performance front, the company’s total revenue decreased by 0.91% to Rs 19.66 lakh for the financial year 2019-20 from Rs 19.84 lakh for the financial year 2018-19. The company’s profit after tax increased by 4427.78% to Rs 8.15 lakh for the financial year 2019-20 from Rs 0.18 lakh for the financial year 2018-19, reflecting a net increase of Rs 8.33 Lakhs due to aforementioned reasons. The company intends to focus on use of targeted marketing initiatives such as digital and print advertisements, as well as marketing through traditional channels such as outdoor advertising. Going forward the company intends to establish its presence in few locations in the country. Its emphasis is on scaling up of its operations in other markets which will provide it with attractive opportunities to grow its client base and revenues.