38% increase in revenue from operations in Q3 FY22 on a y-o-y basis and 14% growth on a sequential basis for Latent view | Q3 FY22 Result Analysis

• Sales rose 37.70% to Rs 107.75 crore in the quarter ended December 2021 as against Rs 78.25 crore during the previous quarter ended December 2020. Net profit rose 122.41% to Rs 49.93 crore in the quarter ended December 2021 as against Rs 22.45 crore during the previous quarter ended December 2020. Net profit doubled because of exceptional item of Rs 22 crore pertaining to an amount received from the US government for a pay-check protection program connected to Covid-19 relief.
• Operating profit margin is 30.5%.
• Attrition: In FY21 (20-22%), Q1 and Q2 of FY22 it is 30%+ while in Q3 it has dropped slightly.
• Revenue per employee is high for the company because it operates in the high end of the value chain of data analytics.
• Managed services consist of 75% of the companies’ revenues while Time and material consists of 25%. Company prefers managed services mode of the revenue generation because it imparts more flexibility to management in terms of staffing and ramping up as well as periodic generation of revenues on monthly or quarterly basis.
• Vertical Revenue mix: Technology (67%), CPG (15%) and Others (18%).
• Onsite to offshore mix ranges from 1: 3.3 to 1: 5.5.
• Consulting and diagnostics (10-15%), Data engineering and services (25-30%), Business analytics and insights (60%) of the revenues.
• Company has taken two salary hikes in April and Oct-21. 30% of the employees are granted employee stock ownership plan (esops) by the company.
• USA contributes 95% of the revenues followed by Europe (3%) and rest of the world (2%).
• Top 20 clients contribute 90% of the revenues while top 5 contributes 61%.

Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell stocks or MF.

Originally Published On: https://blog.investyadnya.in/latent-view-analytics-q3fy22-conference-call-highlights/