I went through their site and they do offer projects in latest technologies like promt engineering(AI), blockchain(though it hasn’t lived up to the hype yet), etc. But sadly in the services industry the trend catches up really quickly. And suddenly you will find most companies offering these. The main differentiater for such kinds of companies is the ability to provide services for lesser hourly rates and have good customer network to make sure that all employees are occupied. And that’s why most of these companies have offices in India as salaries for developers are low there. Recent trend is also to have offices in Eastern Europe region (Poland, Romania) as salaries are lesser compared to say UK or Germany and moreover they work in the same time zone.
The management mentioned that they want to acquire a company in UK with the IPO funds. I think that is definitely a step in the right direction. This will help them get customers in the EU market. But one thing to remember is that unlike product companies they don’t have any operating leverage. In product companies increasing the users of the product rapidly increases the PAT But for them only realistic way for them to increase the revenue and PAT is to hire more people and get them billed most of the time.

This was totally based on my experience in working in a very similar company here in Germany for the last 6 years.

if you see sept and dec 22, revenue is flat. March in general there is a 10 – 15% jump.

In the current year, they have done 1373 Cr. March had 474 cr. Assuming a 12.5% revenue jump in March, total year becomes close to 1906 cr. In my mind, they may marginally miss the 2000 mark – they will not be way off.

What I fail to understand is why they still compare with FY20! FY23 was a very normal base especially Oct22-Dec22, why do they not compare with it?

Plus their sales increase is always meagre and margins have started to decline, marginally but yes they are!

Their whole strategy is to open more stores and drive sales from data driven marketing and collection which does not seem to work so far. They are already in all the metros and Tier 1 towns of India. I doubt they will have a much customer base in Tier III and IV as compared to Tier I and II.

Wearing nice looking clothes in weddings isn’t a habit which they will inculcate in people. Just saw the interview of Vedant Modi, shared by another member an hour back, and he mentioned that almost 90% of their sales is wedding driven. I do not see a lot of optimism at this point of time with the subdued numbers one quarter after another!

Since it is seasonal business, you need to compare results on YoY basis ( this quarter with same quarter last year). YoY numbers are 11% top line growth and 7% EPS growth. For a stock having 67 PE, it is pretty average performance to be honest. Not sure how market would react though…