Q&A Insights: Kashyap Javeri from @EmkayGlobal Investment asked about the spend of budgets that were 2x in FY22 vs. FY21. Harvinder CFO said that the 2x budget were for technology spend which has been growing and it was higher by 70% in FY22. And for FY23 it’s 2.5 times vs. FY22.
Q&A Insights: Prayesh from @MotilalOswalLtd asked about the share of the recurring segment on the corporate finance side and its outlook. Harvinder CFO said that ISEC has a 70% market share in the equity capital market. For outlook, on private equity M&A, ISEC is seeing traction.
Q&A Insights: Prayesh Jain of @MotilalOswalLtd asked about the quantum of ESOP funding next year. Harvinder CFO said that ESPO funding now is about INR 1,400 crores of the total INR 7,500. Next year, ISEC expects it to be probably about half of INR1,400 crores.
Q&A Insights: Aditya Jain from @Citi enquired about the break-up of INR373 crores of brokerage revenue into retail and institutional. Harvinder CFO replied that about INR325 crores was for retail brokerage and institutional brokerage was about INR48 crores.
Q&A Insights: Sahej Mittal from @hdfcsec asked about the marketing spend in 4Q22 and FY22 and the target for FY23. Harvinder Jaspal CFO replied that marketing spend for 4Q22 was about INR30 crores. And for FY22 it was about INR100 crores. For FY23, ISEC expects growth in expenses
Q&A Insights: Sanketh from Spark asked about the reason prime income per customer in 4Q22 increasing from about INR770 to INR1,050. Vishal EVP said that it’s due to ISEC acquiring more high-value customers. And also customers of INR299 plan willing to switch to superior plans.
To read further on the detailed analysis of #ISEC concall Q&A …
Q&A Insights: Dhaval Shah of Svan Investment asked about price increase scenario. Kaushik Roy MD said there is a sharp increase in crude price. However, PCBL said it doesn’t want to take advantage of the situation but also want to pass a reasonable portion of cost to the customer
Q&A Insights: Jain of @ICICI_Direct asked how large is Russia in terms of capacity. Kaushik MD replied that on capacity, the size is similar like India. In terms of capacity it is 1.1 million tonnes. The difference is that 30% is used domestically and 70% goes to Western Europe.
LTI said FY22 saw the company cross the $2 billion revenue milestone, by delivering its highest ever revenue growth this year. As for headcount, during Q4, LTI added 2,448 on a net basis and for FY22 it stood at 10,657. In 4Q22, attrition was 24% vs. 22.5% in 3Q on an LTM basis.
Q&A Insights: Vimal Gohil of @UnionBankTweets asked about weakness in cash flow generation in FY22 and outlook. Anil CFO said LTI had a strong cash flow conversion in 4Q22 at 97% vs. 70% in 3Q, mainly due to better working capital construct. LTI expects to continue in same range.
MINDTREE reported that it is increasing investments in Metaverse Solutions and capabilities to extend its technology and design thinking leadership into an integrated consulting led Metaverse offering.
MINDTREE’s net headcount addition in FY22 was over 11,200, more than six times the headcount addition in FY21. Through FY23, MINDTREE expects its hiring of fresh graduates to increase significantly.
Q&A Insights: Arav Sangai from VT Capital asked about the increase in sensitivity on interest rates. Satyan Jambunathan CFO said the increase in sensitivity on interest rates is the effect of the increase in the nonlinked, non-par savings in the product mix that the company has.
Q&A Insights: Nischint Chawathe with @kotaksecurities asked when does the unwinding rate of 7.2% start going up given that there is a rise in interest rates. Satyan Jambunathan CFO said that it will show up in FY23. Also, FY23 unwind should start off at a higher level than FY22.