Avantel

Q1 24 nos are inline with mgmt commentary in AGM of Order book 68cr rev in Q1 and 188 cr for rest of year.

Q1 nos – Gross margins have been maintained . EBDITA margins should be seen with respect to inventory built up(15.5 cr reported in Q1) , this is likely for two contracts delivery – Lockheed and L&T (Railways) – both of them are getting completed in Q2. This inventory should ideally get consumed in Q2.

Per above H1 itself is 130 cr revenue, last whole year was 155 cr ), which brings to the question that what happens in h2 which traditionally has been more stronger for Avantel/peer groups.

With current runrate and solid Q1 start, a high probability that mgmt does deliver 250 cr+ revenue and NPM at 20% i.e. 50 cr. Future order book build up stays a key watch out (post Q1 mgmt has 188 cr but mkt wd like to see some wins in near future inline with most peers reporting), its a in favor sector and Avantel has lot of room to grow given its tiny size currently(supported by capability)

note above assumptions could be off and actuals may go in either direction. Kindly apply your own discretion.

D – Invested