Intellect Design arena Q1 FY24 earning summary
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Solid Q1 results from intellect, highest ever quaterly revenue of 644 cr, EBITDA margin improves inline with management guidance.
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Last quarter company intellect won deal in Asia pacific (Philipines), middle east(Saudi), Eastern europe (OTP bank), a french bank and US bank. Demonstrates global reach for the company.
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presence in 57 countries, focusing on 10 countries to penetrate deeper. Partnered with IBM and accenture already on cloud, more partnership lined up.
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Regarding GeM, there will be revenue impact from Q4 FY24 – profit is single digit in GeM hence not much impact. Recievable will improve after GeM. Arun Jain doesn’t believe TCS will make any profit with GeM (
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target to grow 15-20% YoY consistently, for FY25 GeM revenue to be adjusted.
Intellect was in competition with Temenos and thought machine for OTP bank deal (from hungary). deal win send a strong message that intellect is front runner in new Bank technology wave. -
Not focusing on treasury, brokerage product for now as opportunity size for other product (Core banking, lending etc…) is too big.
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25 work shops lined up before Sep end with various customers/partners on eMACH.ai
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Arun jain discussed about “Band Aid” solution vs Structural solution BFSI industry. His view is that lot of the BFSI spending last 2 year was on temporary fix due to Covid situation and IT sevice companies benefited from it – akin to Band aid. It was not sustainable, Intellect focus on structural solution and benefitting now. Arun believes many NBFC/Fintech in india also doing the same, specifically not focusing on security in cloud. They will need to fix this at some point and move to structural fix.
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Lost 2 deal in US due to banking crisis (SVB&FRB), temporary setback – but this year has started strongly focusing on Candaian banks more.
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Arun was disappointed that investors are not acknowledging AI capabilties of the company – not many questions on AI (many questions on GeM naturally
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Overall strong result in a weak BFSI IT environment shines spotlight on intellect finally, hopefully better days are ahead.
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