Now Get InvestmentGuruIndia.com news on WhatsApp. Click Here To Know More
On the right track
* Majesco delivered in-line 3.7% qoq CC revenue growth in Q4FY19. While gross margins improved ~100bps qoq, EBITDA margins declined ~350bps and fell short of our estimate due to a one-time client settlement and higher variable payouts to employees.
* For FY19, Majesco delivered strong revenue growth of ~13.4%/22.6% in CC/INR terms and a margin improvement of ~700bps on a yoy basis. Growth and margin improvement were driven by a strong ~65% yoy growth in high-margin cloud revenues (~41% of sales)
* Majesco expects better branding efforts, diversified offerings/delivery, partnerships (with system integrators like Capgemini/Insurtechs) and M&As to drive growth in FY20. However, confirmed order backlog at ~USD97mn grew modestly by ~5% yoy in Q4FY19.
* Strong all-round financial performance in FY19 and right changes in its strategy keep us excited on its long-term growth prospects. We maintain our Buy rating with a DCF-based target price of Rs700.
For More Emkay Global Financial Services Ltd Disclaimer http://www.emkayglobal.com/Uploads/disclaimer.pdf & SEBI Registration number is INH00000035
Above views are of the author and not of the website kindly read disclaimer