IDA showcases PAT growth of 66 per cent
Intellect Design Arena (IDA) is a global leader in Financial Technology for Banking, Insurance and other Financial Services.
On the financial front, IDA’s revenues surged 31.26 per cent YoY to Rs. 397.58 crore in Q4FY19 versus Rs. 302.89 crore in Q4FY18. License revenues surged 42.34 per cent YoY to Rs. 94.85 crore in Q4FY19. On the other hand, AMC revenues stood at Rs. 60.13 crore in Q4FY19, registering a YoY growth of 14.96 per cent. EBITDA stood at Rs. 52.13 crore in Q4FY19 in comparison to Rs. 20.51 crore in Q4FY18, posting an exceptional YoY growth 154.22 per cent. Thus, EBITDA margin soared to 13.1 per cent in Q4FY19 as against 6.8 per cent in Q4FY18. Consequently, Net Profit climbed 66.12 per cent YoY and was reported at Rs. 42.98 crore in Q4FY19 versus Rs. 25.87 crore in Q4FY18.
IDA has very good revenue and growth visibility as its order book surged 38 per cent YoY to Rs. 14.30 billion in Q4FY9. Moreover, numerous deal wins of substantial amounts are an indicator of product acceptance in the market. Q4FY19 recorded 8 Digital-led wins including 3 large Digital Transformation deal wins. Overall, in FY19, the company was awarded 47 Digital-led wins including 13 large Digital Transformation deal wins. The current funnel (Active Pursuits) of Intellect stands at around US$508 million, out of which US$397 million is accounted by 122 opportunities. The company boasts more than 35 high value active pursuits of which 6 pursuits have a value of over Rs. 50 crore each, 14 pursuits possess a value in the range of Rs. 30 crore to Rs. 50 crore and 19 pursuits have a value in the range of Rs. 20 crore to Rs. 30 crore.
The management has indicated that there will be no need of dilution for raising funds to achieve its targeted growth of 20 per cent in FY20E. Most importantly, the company’s net cash position has improved dramatically to Rs. 0.13 billion in FY19 as against a negative cash position of Rs. 0.10 billion in FY18.
On Friday, the shares of Intellect Design Arena opened at Rs. 221.30, and hit a high and low of Rs, 226.00 and Rs. 219.50, respectively. The stock closed at Rs. 225.25, up 1.85 per cent.