Company Update - Intellect Design Arena - ICICI Direct

Intellect reported weak Q1FY22 results.

- US$ revenues increased 2.3% QoQ to US$55.3

- Adjusted EBITDA margins declined 285 bps QoQ to 22.3%

- License linked revenue was at 58% of overall revenues

Key triggers for future price performance

- Improving deal wins, deal pipeline (Rs. 4,630 crore), increased penetration in US & Europe, improving quality of revenues (licence + AMC + Cloud from 46% in FY20 to 54% in FY21) bode well for long term revenue growth

- The company aspires to achieve 14-16% CAGR in revenues over the next five years. However, the near term impact of Covid prompts us to factor in 13% CAGR in dollar revenues

- It is expected to post 431 bps improvement in margins to 28% in FY21-23E

For details, click on the link below: Link to the report

Shares of Intellect Design Arena Ltd was last trading in BSE at Rs. 748.35 as compared to the previous close of Rs. 707.35. The total number of shares traded during the day was 141239 in over 8481 trades.

The stock hit an intraday high of Rs. 762.55 and intraday low of 709.95. The net turnover during the day was Rs. 104550288.

Source : Equity Bulls

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