Anand Rathi 's research report on Intellect Design Arena
Intellect’s focus on profitability and cash generation yielded results. It turned net cash/FCF positive and could be amplified further by revived growth in advanced markets. License revenue up 96% y/y, AMC up 12% y/y, Cloud/SaaS up 23% y/y contributed to growth, mostly driven by India and the RoW. DSO came down to 167, (FY20: 195), reflecting collection efficiency. iGCB was launched in advanced markets while iGTB saw momentum in the US.
Outlook
We are raising FY21e/22e 12%/4% on margin performance, our target to Rs330 (from Rs310) and retaining our Buy, at 25x FY22e adj. EPS.
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