It has consolidated well around 950-975 and any positive commentary around , announcement of new parks , opening as per committed timelints of in progress parks , increase in footfalls and increase in ARPU can trigger next round of upside .
Posts in category Value Pickr
Sonata Software A Turnaround Story (08-05-2024)
Sonata Software (SONATSOFTW) Q4 FY24 Earnings Call Highlights
Financial Performance:
- International Services:
- QoQ revenue decline of 2.4% (2.2% in constant currency).
- YoY revenue growth of 24.1% (24.3% in constant currency).
- Strong EBITDA performance.
- PAT decline QoQ, but growth YoY.
- Stable DSO at 45 days.
- Domestic Business:
- Strong YoY gross contribution growth.
- PAT growth QoQ and YoY.
- Overall:
- FY24 saw a robust 34.3% YoY revenue growth.
Operational Performance:
- Large Deals:
- Success with 14 large deals in FY24.
- Delay in healthcare sector deal, but active and expected to pick up.
- Healthy large deal pipeline with significant Fortune 500 presence.
- New Logo Wins:
- 45 new logos added, including Fortune 500 companies in Q4.
- Strategic Bets:
- Progress in Microsoft Fabric and AI & GenAI initiatives.
- Client Concentration:
- Focus on expanding client base, particularly in higher revenue segment.
- Headcount & Utilization:
- Slight decline in headcount, but improved utilization.
- Vertical Performance:
- Expectation of growth in Hi-Tech and Healthcare sectors.
Future Outlook:
- Expectation of near-term flat to slightly positive growth, with acceleration in second half of FY25.
- Confidence in medium and long-term growth driven by large deal pipeline and strategic investments.
- No immediate M&A plans, but open to opportunities next year.
Concerns:
- Lengthening deal closure cycles causing revenue recognition uncertainty.
- Margin pressure due to investments and onsite-offshore mix shift.
- Muted growth expected in BFSI and Retail sectors.
Other Important Points:
- Commitment to Responsible AI offering and employee training.
- Recognition as fastest growing IT service provider by HFS Research.
- Continued investment in people and diversity initiatives.
Phantom Digital Effects Limited (08-05-2024)
Maybe all of the VFX companies are being classified in the same boat.
Phantom has declared strong results last quarter. Has shared couple of positive updates in the form of project wins, Awards recognition.
However, seems Market hasn’t taken cognisance of it.
In the recent past (eg Sept qtr), the result (aka progress) was inconsistent.
And the company hasn’t shown good Cashflows so far
(although that also to some extent has been due to 1 time project financing of Ayalaan movie & others)
Let’s see how the story unfolds.
Disc – Invested.
Navneet Publications – a good com in education sector (08-05-2024)
Navneet’s share has increased 10% in last 2 days when market is down 2-3%. Is there any news on NEP or its pre-result rally?
Kamat Hotels (India) Ltd- A Possible Turnaround Story! (08-05-2024)
It was a bit disappointing that the management didn’t take the one off costs ( finance restructuring / statutory payments etc) in their calculations while giving the confident 100 Cr EBITDA guidance in the last concall held in Feb 2024.
This episode raises concerns on their guidance of 400Cr/140cr ebitda target for FY25. There will be one off costs in FY25 too considering the plans to add ~600 keys / ramp up of new properties, so will have to wait & watch.
While upfront investments in manpower/opex for upcoming properties is understandable, calling out the total one off expenses in Fy24 might have been prudent in their investor communication so investors have an idea of the normalized EBITDA.
Waiting for the transcript to come out.
Disc: Invested and biased.
Generative AI- Boon or Bane for Indian IT Companies? (08-05-2024)
Thanks for sharing this. Spot on.
Manappuram Finance (08-05-2024)
How about the shareholder category discount for Manappuram shareholders? Do we come to know this only during RHP submission?
Kamat Hotels (India) Ltd- A Possible Turnaround Story! (08-05-2024)
As per the Q3 concall, Vishal Kamat ji was quite confident of achieving INR 100 crores of EBITDA, but there’s a miss by 10%.
Although, on the other hand they also said that the debt will remain at the same rates till June or July but they’ve managed to bring it down to lower rater.
Fredun Pharmaceuticals – A good microcap with great potential? (08-05-2024)
Any idea why the EBITDA margins are down and why is the interest going up every quarter ? Is it a cyclical business because there is no stable margin guidance on this one.