Revenue missed, margins expanded; maintaining our Buy
Affle India’s Q3 FY23 revenue grew 10.8% y/y, 6.1% q/q, to Rs3.76bn. The company is faced with pressure in developed markets (US, Europe), which bring ~20% to its revenue. India and other emerging markets (~80% of revenue) grew 23% y/y. The gross margin expanded 280bps y/y, 138bps q/q, to 39.3%, as inventory and data costs (as percent of revenue) fell to 60.7%, from 63.5% a year ago, 62% the prior quarter. Factoring in the slowdow...
Buy Affle India Ltd For Target Rs.1,300 - Anand Rathi Shares and Brokers
