GR Exclusive: Outlined Plans For Growth, Strategic Expansion: One Point One Solutions

Small cap company from the IT Enabled sector, One Point One Solutions Ltd shares gained nearly 184% in last 1-year. The company's net profit for the March quarter more than doubled to Rs 7 crore as compared to RS 3 crore for the corresponding quarter of last year amid better operational performance. Revenue surged 36% at Rs 53 crore (Rs 39 crore). Meanwhile, EBITDA zoomed by 33% to Rs 16 crore.

According to March 2024 shareholding, promoters of One Point bought 5% stake and increased their holding to 67.79% as against 62.67% for the December quarter. Meanwhile, BofA Securities Europe SA bought 30 lakh shares at Rs 50 per share aggregating to Rs 15 crore for March 2024. Current market price of One Point One Solutions share on NSE is Rs 61.90 per share with intraday gain of 0.80%. The 52-week high price of One Point One Solutions shares on NSE is Rs 70.00 per share and 52-week low price is Rs 20.35 per share, respectively.

In an exclusive interview with Goodreturns, One Point One Solutions MD, founder and chairman Akshay Chhabra provided insights into growth, changes, challenges, and more.

What are some of the key challenges One Point Solutions faced in Q4 and how did the company navigate them successfully?

Upgrading the HRMS system to be in line with the latest industry trend was in the pipeline as we prepare ourselves for growth:

We deployed Zing HR a robust HRMS platform and at the forefront of HR innovation, focused on driving tangible business outcomes, transforming Hire to Rehire processes.

Creating Top of the Funnel for US expansion:

Navigating the U.S landscape and establishing ourselves as a key name in outsourcing industry was initiated with our participation in the Customer Contact Week (CCW ) event, which concluded on June6, 2024 in Las Vegas. At the event, we were able to showcase our capabilities to the international audience, including connect with 200+ unique companies and 400+ clients. The team was able to wrap up deals while being part of the event itself.

What are One Point Solutions' key priorities and focus areas for the upcoming fiscal year 2024 based on the Q4 results?

Deployment of Digital Transformation such as Gen AI and Intelligent Automations across our processes and enhance the overall efficiency leading to improved bottom line performance. Participating in Focussed Group Discussion with potential clients in the US and work closely to ensure seamless onboarding are few of the topical activities in pipeline. Further discussions have been scheduled in the upcoming quarters and looking forward to having a good influx in Top Line from US businesses from an organic perspective. Another key project is to expand our delivery footprint in Nearshore (LATAM) and offshore (Phillipines). This would ensure us to reach out to global brands which requires operations across boundaries under multiple geographies.

Can you provide an overview of One Point Solutions' key financial and operational highlights from Q4 and the full fiscal year 2023

One Point One Solutions had a remarkable Q4 of FY24, when it recorded a revenue growth of 37.62% from Q4 of FY23. This performance also capped a stupendous full fiscal year, during which the PAT for FY24 grew by 143.5% as compared to that of the full fiscal year 2023. The growth in the company's Earnings per Share (EPS) for the full fiscal year has been 125.53%, which indicates handsome returns for our shareholders.

What were the main factors that contributed to the company's strong 119% growth in earnings per share over the past three years.

There were many factors that collectively contributed to best-ever operational performance and improved our profitability. We infused Generative AI, RPA and Intelligent Automation to enhance our operational efficiency and throughput.
Besides, new accounts with better margins were added during the period and our existing accounts were mined to broaden our service offering. All these help in delivering a strong growth in our EPS.

How has One Point Solutions' revenue growth of 3.4% in the last year positioned the company for continued success in the BPM space?

We have had one of the best years in terms of our balance sheet numbers. Our customers are demanding support that effectively balances quick responses with personalization and automation with a human touch.

We listened to our customers and our efforts in doing business transformation using Generative AI and RPA are finally paying off. Our mission is to build a next-generation customer-centered organization.

What strategies has the company employed to drive innovation and efficiencies to surge ahead in the competitive BPM market?

The company has identified four key levers to drive and deliver future operations using transformation. These pillars are simplifying through operational redesign, intelligent automation, technology intervention through digitization, and a scalable location model.

Can you elaborate on how One Point Solutions' focus on identifying new business opportunities and transforming them into real-life conversions has impacted the company's growth trajectory?

One Point One Solutions' focus on identifying new business opportunities and transforming them into real-life conversions has positively impacted the company's growth trajectory.

The focus on lean structure and skill coordination, smart automation, legacy modernization, and secure and borderless talent cloud have collectively contributed not just in operational efficiency but also in achieving better margins and getting new clients onboard.

How has the company's cognitive culture and strong leadership under your guidance as Managing Director helped align One Point Solutions with its strategic vision?

The company's cognitive culture along with smart automation and strong leadership under my guidance has helped align the company with its strategic vision of building a next-generation customer-centered enterprise.

Our approach has helped our customers achieve real benefits, as our solutions include several key components that work together to create a seamless customer experience. Firstly, we capture data from all channels of communication to create an omni-data profile of the customer and that allows us to understand the customer's needs and intents in each interaction as well as retain contextual insights across multiple touchpoints.

Then, we personalize our services by leveraging the omni-channel data profile, analytics, and interaction design methodologies to form segmentation of customers and provide anticipatory personalized services.

Overall, our solutions also focus on understanding the desired outcome of our customers and helping them achieve it through end-to-end interactions that prioritize effort, empathy, engagement, efficacy and speed.

In light of the company's strong financial performance, how does One Point Solutions plan to allocate capital and resources to drive future growth and shareholder value?

One Point One Solutions has outlined several plans to sustain the growth and embark on strategic expansion. There are plans for Delivery Centres across India, Philippines, Latin America, and South-East Asia. These Delivery Centres align with our vision to offer a full-service play across IT Services, BPO, KPO, RPA & Intelligent Automation, Transformation, Generative AI & ML, and Analytics. We also plan to implement backward integration of technology and transformation to drive efficiency and improve our bottomline, while deepening our relationships with the clients and expanding our footprint.

How does the company plan to maintain its competitive edge and continue delivering robust financial and operational performance in the years ahead?

The company has done its first acquisition this year to strengthen our base in the North American market. This will help us expand our American business faster.
Besides, the acquisition also adds to our verticals, as IT Cube caters to diverse industries including healthcare, automotive, financial and legal services, consumer goods, real estate and retail, to name a few.