The Company has beats market expectations & maintained its double digit growth.
Earning Highlights Q3FY23:
As per the management, the Company has delivered another quarter of double-digit revenue growth. Its Total Bookings were over $4.3 billion, led by solid large deal signings of over $1 billion. It improved its margins by 120 basis points and its attrition moderated for the fourth quarter in a row.
It is continuing to gain market share as a result of deepening client relationships and higher win rates. Clients are turning to the company to help them manage an evolving macro environment and balance their transformation goals with cost optimization. Its ability to deliver on client objectives regardless of where they are in their cloud journeys is positioning it favourably in a consolidating market.
Deal wins: The Company won deals worth $4.3 billion in the quarter, up by 26% YoY, with large deal bookings rising by 69% YoY. The growth in large deal booking was much stronger than the 24% growth reported for the September quarter.
The Company closed 11 large deals resulting in a TCV of over $1 billion, grew by 69% YoY in Q3’23.
Top 5 clients grew 15.7% YoY and top 10 clients grew 14.7% YoY in constant currency terms, underscoring deepening relationships with top strategic clients.
Future Guidance: The management expects Revenue from its IT Services business for the full year to be in the range of 11.5% to 12.0%, in constant currency terms.
This translates into the growth rate of -0.6% to 1.0% sequentially in constant currency terms for quarter ending March 31, 2023.
Valuation & View:
At the CMP of Rs. 393, the stock is trading at annualised P/E multiple of 20.7 times with the annualised EPS of Rs. 18.9, which is fairly valued.
Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.
Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Land base Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited are associates of GCML. Globe Comex International DMCC is step down subsidiary of GCML.
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