Q4FY21 Company Update - Intellect Design Arena - ICICI Direct

Intellect reported a healthy set of Q4FY21 numbers. Dollar revenues increased 4.5% QoQ to US$54.1 million. Rupee revenues increased 3.2% QoQ to Rs. 394.6 crore mainly led by 54.2% QoQ growth in cloud revenues and 1.0% QoQ growth in AMC revenues. EBIT margin was flat QoQ at 20.2% mainly led by higher other expenses. PAT was flat QoQ at Rs. 80.6 crore due to lower other income. The company's net DSO declined from 124 days in Q3FY21 to 114 days in Q4FY21.

Valuation & Outlook

Improving deal wins in IGCB, IGTB and iSEEC, increased penetration in the US & Europe market, digital-ready product portfolio, healthy pipeline, huge addressable & underpenetrated market and improved annuity revenues bode well for revenue growth. In addition, healthy margins prompt us to revise our EPS estimates upwards by ~10% and ~13% for FY22E & FY23E, respectively. This, coupled with improving cash flows, prompts us to upgrade the stock from HOLD to BUY with a revised target price of Rs. 875 (6x FY23E price/sales and 25x FY23E EPS) (earlier target price Rs. 640).

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

Shares of Intellect Design Arena Ltd was last trading in BSE at Rs.757.1 as compared to the previous close of Rs. 822.8. The total number of shares traded during the day was 174551 in over 7362 trades.

The stock hit an intraday high of Rs. 800 and intraday low of 745. The net turnover during the day was Rs. 134140447.

Source : Equity Bulls

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