Stocks of Intellect Design Arena Limited zoomed 13 percent today and currently trade at Rs 526. In the last 5 trading sessions, the stock has gained around 16 percent ranging from Rs 454 to the current levels.
The company’s stock prices hiked after it announced its Q4 as well as annual results for FY22-23. Moreover, the company’s Board recommended a Final dividend of Rs 2.50 per share (50 percent of its face value of Rs 5) for FY22-23.
Intellect Design Arena Limited is an Indian IT software services company that is engaged in the business of financial and software technology development for insurance, banking, and other financial services. The company’s product portfolio includes Digital lending, Digital cards, Payments, Wealth Qube, etc.
A walkthrough of the consolidated financials leads us to observe that the company, on a QoQ basis, has been able to improve the operating revenues from Rs 547 crores in Q3 v/s Rs 615 crores in Q4. Moreover, the PAT numbers moved up from Rs 63 crores to Rs 91 crores exhibiting an increase of around 45 percent.
On a YoY basis, there has been an opposing movement in the parameters mentioned above with operating revenues, on one hand, increasing from Rs 1,878 crores during FY21-22 to Rs 2,231 crores in FY22-23 and PAT figures, on the other hand, going down from Rs 350 crores to Rs 269 crores keeping the timeframe the same.
The company has been able to maintain healthy profitability ratios with the basic ones such as return on equity (ROE) marginally increasing from 22.69 percent during FY20-21 to 22.97 percent in FY21-22 and the return on capital employed (ROCE) moving up from 22.08 percent to 25.85 percent.
The latest shareholding pattern data represents the promoters holding a 30.6 percent stake, and Foreign Institutional Investors (FIIs) holding a 22.31 percent stake in the company.
Written by Amit Madnani
