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
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Standalone Financials (In Lacs) |
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| 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% |
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Consolidated Financials (In Lacs) |
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| 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
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- 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
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