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News: Intellect Design in Q3FY24 reported a revenue of Rs. 634.3 crore, up 2.5% QoQ & 16% YoY after reporting a revenue decline of 3.2% QoQ in Q2FY24. SaaS (Platform) revenue was flat on YoY basis while it declined by 24.5% QoQ to Rs. 111 crore. Licence linked revenue (SaaS+License+AMC) came at Rs. 347 crore, up 23% YoY. EBITDA margin declined by 90bps QoQ to 20.6% due to decline in other expenses while in absolute terms EBITDA came at Rs. 130.9 crore, up 7.4% QoQ. PAT for the company came at Rs. 84.9 crore, up 35.6% YoY while PAT margin was 13.4%.
Views: : Intellect’s contract for maintaining GeM portal ended on 15th December. Intellect indicated that it earned ~₹ 20 crore of revenue in Q3FY24 from GeM. The company indicated that it will be able to recoup the loss of GeM revenue and hence it expects a flattish quarter in terms of revenue. The company also indicated although the exit of GeM contract will have impact on revenue in the short term but it will aid to improve margins as the GeM contract was margin detrimental for the company.
Impact: Neutral