Expleo Solutions Q4 revenue up but PAT declines qoq basis; Stock under pressure

Total income rose 4.2% to Rs80cr in Q4FY21 as compared to Rs76.8cr in Q3FY21. PAT declines to Rs10.2cr in Q4FY21 as compared to Rs12.5cr during the previous quarter.

May 21, 2021 09:05 IST India Infoline News Service

Quarterly Results
Expleo Solutions Limited on Thursday announced its fourth quarter and full year results ended on March 31, 2021. Expleo Solutions is a specialist in providing quality assurance services for Banking, Financial and Insurance (BFSI) Software, and an independent quality assurance service provider listed in India.

The company’s operating revenue was Rs79.3cr in Q4FY21 as compared to Rs72.1cr during the previous quarter, reflecting a growth of 10.0% qoq. Total income was Rs80cr in Q4FY21 as compared to Rs76.8cr during the previous quarter, reflecting a growth of 4.2% qoq.

The company’s EBITDA stood at Rs19.1cr with a margin of 24.1% in Q4FY21 as compared to Rs13.7cr with a margin of 19.0% during the previous quarter. Profit after tax declined to Rs10.2cr in Q4FY21 as compared to Rs12.5cr during the previous quarter.

Basic EPS stood at Rs10.72 as compared to Rs12.30 for Q3FY21. The company’s net cash position stood at Rs131.1cr in Q4FY21 as compared to Rs141.5cr during the previous quarter.

On full year basis, the operating revenue was Rs300.9cr as compared to Rs270.2 cr in FY20, reflecting a growth of 11.4%. Total income was Rs306.3cr as compared to Rs278cr in FY20, reflecting a growth of 10.2%. EBITDA stood at Rs69.8cr with the margin at 23.2% in FY21 as compared to Rs53.2cr with the margin at 19.7% in FY20, reflecting a growth of 31.3%.

The company’s Profit after tax stood at Rs49.7cr as compared to Rs39.5cr in FY20, reflecting a growth of 25.8%. Basic EPS stood at Rs49.20 as compared to Rs38.51 in FY20, reflecting a growth of 27.8%. The company’s net cash position stood at Rs131.1cr as on March 31, 2021 as compared to Rs87.2cr as on March 31, 2020.

“The business performance has gained good traction and we are seeing a healthy pipeline of opportunities in our traditional services and in the Digital Services. The projects deferred and on hold are showing signs of revival and ease in the next couple of quarters.

The impact of the second wave of COVID is slowing down some of this traction in select markets, the rate of infection among our colleagues is significantly higher than in the first wave. We are closely monitoring and extending all possible support to the teams and their families,” Balaji Viswanathan, Managing Director & CEO, Expleo Solutions Limited, said.

“The business results of this quarter and the last 3 quarters indicates the continuing growth trend in our digital and emerging services. Digital Services is now 26% of our total business compared to 15% of the total business as of March 2020. We continue to add new clients (3 new clients added in Q4FY21) and have been addressing our concentration risk,” he added.

During early trade on Friday, Expeo Solutions Limited was trading at Rs651.80 per piece down Rs48.30 or 6.90% on the BSE.

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