About the Company
Accelya Kale is a leading provider of technology products and services to the travel and transport industry. Founded in 1976, Accelya delivers financial, commercial, cargo and analytics solutions designed for a world on the move. Formed through the merger of Accelya and Mercator, Accelya provides the mission critical solutions that account for and manage more than 5 billion financial transactions and 75 million tons of cargo annually. Accelya serves as a strategic partner to more than 400 airlines, travel agents and shippers. Accelya Kale’s solutions are available as hosted and outsourced in pay-per-use models.
Q3 2019 Updates
Financial Results & Highlights
Standalone Financials (In Lacs) |
||||||||
Q3FY19 | Q3FY18 | YoY % | Q2FY19 | QoQ % | 6M FY19 | 6M FY18 | 6M% Change | |
Sales | 10008 | 10118 | -1.09% | 10150 | -1.4% | 20158 | 19129 | 5.38% |
PBT | 4175 | 4758 | -12.25% | 4245 | -1.65% | 8420 | 8353 | 0.8% |
PAT | 2700 | 3299 | -18.16% | 2918 | -7.47% | 5619 | 5680 | -1.07% |
Consolidated Financials (In Lacs) |
||||||||
Q3FY19 | Q3FY18 | YoY % | Q2FY19 | QoQ % | 6M FY19 | 6M FY18 | 6M% Change | |
Sales | 11498 | 9781 | 17.55% | 10534 | 9.15% | 22032 | 19621 | 12.29% |
PBT | 4570 | 3738 | 22.26% | 3767 | 21.32% | 8337 | 7300 | 14.21% |
PAT | 3026 | 2230 | 35.7% | 2324 | 30.21% | 5350 | 4525 | 18.23% |
Detailed Results
-
- The consolidated results for the quarter and half yearly has been strong. Standalone results have been muted.
- While quarterly and half yearly consolidated sales have grown by 17% and 12% respectively, PAT has grown by 35% and 18% respectively for the same period.
- The company is debt free for several years now and showing stable set of numbers for a long time.
- The stickiness in their business keeps their customers hooked onto them for long.
- It partners with airlines right from the time a ticket on an air waybill is issued, all the way through its entire life cycle, until the data is converted into actionable decision support.
- Their strength lies in their unique business model where platforms are offered on a hosted environment along with “service cubes” which are optional services provided through Accelya Managed Services (AMS) centres.
- Company’s pay-per-use business model further helps airlines avoid upfront capital investments and release cash flow for other priorities.
Analyst’s View
Accelya Kale Solutions is a reputed software solution provider to the global airline and travel industry. Their business model of “pay-per-use” is a win-win for both the company and its customers. While it helps customers avoid upfront capital investments, company gets benefited with annuity revenue streams ensuring forward revenue visibility. It’s a stable company with a high dividend yield. Valuations have come down sharply in the last year, which makes it an interesting investment case.
Disclaimer
This is not investment advice. Please read our terms and conditions.