Thread by @ValueEducator

#LatentViewAnalytics Q3 2022 Concall Highlights

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Numbers Update-

1. The revenue for Q3 was 107 cr up by 13.7% QoQ an 37.7% YoY

2. EBITDA stood at 32.2 cr for Q3 and EBITDA margins stood at 29.9%, giving the industry highest margins.

3. PAT for Q3 was 49.9 cr and PAT margins stood at 44.2%

4. Technology sector contributes around 67% of revenues

5. CPG Contributes 15% of the revenues and other contribute around 18% of revenue.

6. 6 clients were added in this quarter

7. Utilisation stands around 80% - 85%

Business Updates-

1. Latent View Analytics is a pure play Analytics company and also little towards consulting and data engineering, Business analytics is 60% of the business.

2. The company majorly work with fortune 500 companies

3. Around 95% of the revenues for the company comes from US, the company will be increasing its footprints in Europe going forward

4. The company tends to work at the front end of the value chain, the work company does is to solve fuzzy problems for its clients.

5. Latent view faces competition from leading consulting firms like Mckinsey and other IT companies with analytics capabilities.

6. Growth in the quarter was due to strong demand, technology business led to overall 58% of the growth in Q3

7. Q3 tends to be the strongest quarter for the company because the majority of its revenues come from the US.

Companies there have their last quarter hence clients tend to increase IT spend.

8. Q3 contributes around 28% - 30% of revenue for the entire financial year

9. The company will be looking for inorganic opportunities going forward

10. The company also helps its clients to move from perpetual licensing model to subscription based model Eg- Adobe was one of the clients whom they worked with for the same.

11. First client that was acquired in the US went from 0 revenue to 6 million, highest the company has clocked is 0 to 10 million in the period of 4 years.

Revenue recognition -

1. The company recognises its revenue in two ways -

Managed services - 70% - 80% of the business is through managed services

T&M - 20%- 30% of the business

2. Managed services is a fixed price charged per month to its clients based on the complexity of project.

3. Managed services business has more flexibility and consistency of revenues also the client engagement is higher here.

Employee updates-

1. 243 employees were added in this calendar year, total number of employees stands around 900 employees.

2. Company gave increments to 80% of its workforce, wage hikes were 16% - 17% for the employees in India and around 4% hikes for employees in US.

3. The onsite offshore ratio stands at 1:5

4. Attrition stands around 30% higher as compared to previous year, observing reduction in attrition with wage hikes and other employee programmes.