Intellect Design Arena surges 17% post strong Q1 performance

Intellect Design Arena is a software and consulting firm, which works globally in the fields of Financial Technology for Banking, Insurance and other Financial Services.

Intellect Design Arena shares jumped over 17 percent to Rs 6,77.65 on July 28 at 11:02 am after reporting a strong set of financials for the first quarter of FY24.

Revenue witnessed an 18-percent growth year-on-year at Rs 639 crore versus Rs 541 crore in the same quarter of last year. The gross profit margins improved for another consecutive quarter to 56.8 percent.

Net profit increased by 36 percent YoY to Rs 93 crore in Q1FY24 from Rs 69 crore in Q1FY23.

The margins at earnings before interest, tax, depreciation and amortisation (EBITDA) level grew to 23.1 percent versus 21.6 percent in the same quarter of last year.

Collection in this quarter grew to Rs 582 crore versus Rs 485 crore in the March 2023 ended quarter. The deal pipeline is also at a multi quarter high of Rs 7,240 crore.

Deal book

Intellect Design Arena closed 11 deals in Q1FY24. Some of the notable agreements included Aspen opting to use IntellectAI's Magic Submission, OTP Bank selecting Intellect's prestigious IDC Banking platform, and others. A leading bank in the Kingdom of Saudi Arabia has adopted iGTB's DTB solution, and a fintech startup located and operating in the UK has chosen IntellectAI's Magic Invoice.

The stock was trading 17-percent higher on July 28 and snapped its seven day losing streak. This is the biggest single day gain in the past two months. The scrip has rallied 45 percent since the start of this calendar year.

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