- 29 Jul 2024
- ICICIdirect Research
INTELLECT DESIGN- DEAL CLOSURE DELAYS IMPACT PERFORMANCE
INTELLECT - 1188 Change: -17.40 (-1.44 %)News: Intellect Design in Q1FY25 reported revenue of ₹ 606.3 crore, down 1.2% QoQ and 5.2% YoY. License linked revenues (License+ SaaS+ AMC) which forms 51% of mix (vs 50% in Q4FY24) declined ~13.1% YoY. EBITDA margins came at 19.9%, down ~230 bps QoQ/~320 bps YoY. The company reported PAT of ₹ 74.7 crore, up 1.9% QoQ/ down 20% YoY. Pipeline was of ₹ 8,526 crore which was up 4.8% QoQ and 17.8% YoY.
View: The company’s revenues and deal pipeline in Q1FY25 were impacted by delay in deal closure of a ₹30 crore deal, which is now expected to close some time in Q4FY25. The company had a healthy deal pipeline for the quarter including 12 digital transformation deals. It is seeing increased traction for its Purple Fabric and eMACH.ai platforms. The company is investing in setting up a team and platform for US banks as it plans on entering the US markets for its Global Consumer Banking (iGCB) service line. The management reiterated that it is looking for 15% growth this year, after adjusting for GeM exit.
Impact: Neutral