Q4 Results Reaction: Intellect Design Arena shares tank 15.5% on weak Q4

The Chennai-based fintech institution reported a 6.6 percent year-on-year (YoY) diminution successful its nett net astatine ₹85 crore successful Q4FY24 arsenic against ₹91 crore successful the corresponding 4th past year. The steadfast informed that its nett net was without considering the one-off exceptional point of MAT recognition write-off of ₹12.51 crore.

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Meanwhile, its full gross for the 4th nether reappraisal fell 1.4 percent YoY to ₹612 crore connected the backmost of the termination of the Government e-Marketplace (GeM) contract. On the operating front, its Earnings earlier interest, taxes, depreciation, and amortisation (EBITDA) margins were level astatine 22.2 percent YoY (and up 130 bps QoQ), the muted borderline was owed to 15 percent YoY summation successful worker expenses.

The banal shed arsenic overmuch arsenic 15.5 percent to its day's debased of ₹864.35. It is present 28 percent distant from its highest of 1,198.80, deed connected March 15, 2024. However, it has inactive soared 89 percent from its 52-week debased of ₹457.60, deed connected May 11, 2023.

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In the past 1 year, the banal has delivered multibagger returns of 124 percent, outperforming benchmark Nifty 50 which has risen 20 percent during this period. However, it is up conscionable 3.6 percent successful 2024 YTD. The banal has mislaid 17.5 percent successful May truthful far, extending losses for the 3rd consecutive month. However, it roseate 23 percent successful February and 7.6 percent successful January this year.

Among different details, the company’s committee has besides recommended a last dividend of ₹3.50 per stock of the look worth of ₹5 for the fiscal twelvemonth ended March 31, 2024.

Intellect Design Arena has the world’s largest cloud-native, API-led microservices-based multi-product level for Global leaders successful Banking, Insurance, and Capital Markets.

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The company's revenues and margins were affected by the termination of the GeM contract, but this determination should amended aboriginal margins arsenic the declaration was not favourable for the company's profitability, according to ICICI Securities. The institution besides had a beardown woody pipeline for the extremity of FY24, with 18 integer translation deals successful Q4FY24. The brokerage steadfast reported the institution projected a 15% gross maturation for FY25, adjusted for the GeM exit.

The institution further informed that its eMACH.ai exertion suite drove maturation with 16 caller customers, portion 18 planetary fiscal institutions adopted its platforms and products successful Q4. In total, 52 caller customers selected Intellect's integer offerings, including 16 large contracts, and 54 planetary fiscal institutions are present utilizing the company's platforms and products.

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"We person extended the utilisation of eMACH.ai to see ample Corporations and Governments done 3 caller platforms launched successful FY24: Intellect Corporate Procurement Exchange (iCPX), Intellect Government Procurement (iGPX) and Intellect Account Payable Exchange (iAPX)," the institution informed.

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Published: 10 May 2024, 11:25 AM IST