February 17, 2017 / 14:47 IST
Indo Count’s (ICNT) 3QFY17 net revenue remained flat yoy but de-grew by 12% qoq to Rs5bn (8% below estimate). The muted revenue growth was mainly due to extension of summer, elections and holiday season in US. EBITDA stood at Rs1bn, down 11/13% yoy/qoq, while OPM was down by 270bps and stood at 20.3% (20bps lower than estimate), mainly due to an increase in employee and other expenses.
Outlook
We estimate ICNT’s revenue/net profit to post a CAGR of 10/14% during FY16-19e. We revise the target price to Rs 202 (earlier Rs 208), valued at 11x (average EPS for FY18e and FY19e) and maintain a Buy rating.
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