Intellect Design Arena shares plunge over 15% post weak Q4 results

Intellect Design Arena shares opened 9.25% lower at ₹930 apiece on the NSE and further tumbled as much as 15.69% to hit an intraday low of ₹864 apiece.

The Chennai-based fintech company, in its earnings report for the quarter and financial year ended March 31, 2024, released on Thursday reported a decline in net profit. The company’s revenue dropped marginally in Q4FY24.

Intellect Design Arena’s total revenue for the January-March 2024 quarter dropped marginally by 1.4% year-on-year (YoY), reaching ₹612 crore, down from ₹621 crore in Q4FY23.

The company reported a more than 6% YoY drop in net profit at ₹85 crore for Q4FY24, compared to ₹91 crore in Q4FY23. The net profit excluded a one-time exceptional MAT credit write-off amounting to ₹12.51 crore in the March quarter.

EBITDA for the fourth quarter in FY24 also decreased YoY to ₹137 crore, compared to ₹143 crore in the year-ago period.

Intellect Design Arena Board also proposed a final dividend of ₹3.5 per share of the face value of ₹5 each, for the fiscal year ending on March 31, 2024, pending approval by shareholders at the upcoming annual general meeting. The dividend is scheduled to be disbursed within 30 days from the date of approval.

Intellect Design Arena Ltd is a cloud-native fintech company serving the banking, insurance, wealth management, capital markets, procurement and accounts payable sectors. The company serves over 270 customers worldwide through offices in 57 countries.

Shares of Intellect Design Arena Ltd were trading 13.98% lower at ₹881.5 apiece on the NSE at 1:09 pm.