Accelya business model is a bit different but easy to understand. Unlike other Indian IT cos it’s successful n leading a product company n that too in its forte of revenue n business intelligence sector of airlines. The business is non linear not proportional to head count . Operating leverage comes into play once the top line increases due to its fixed cost which it seems is working beautifully since Accelya took it over.
It’s business is directly proportional to no of transactions taking place as its paid on per transaction basis . The key differential is the choice of Accelya as IT partner by fast growing Ethihad airlines . Ever since then the no of transactions are growing fast thus directly benefiting Accelya. Other airlines too find this opex based outcome based pricing model very attractive. Accelya besides getting steady business gets a client for 5-6 years .
Ethihad which has recently taken over Jet Airways in India has also tie up with other air lines like Air Seychelles, Air Berlin, Serbia Air, air lingers, Virgin Australia n is on lookout for others as well. This is turning very beneficial for Accelya as well
Indian IT cos want to go in for non linear business model and as such ET now had floated a news that Accelya might get sold for around 2100 cr mkt cap compared to 900 cr mkt cap.
Co doesn’t need much cash n is distributing heavy dividend n depreciating rupee is also acting as major tailwind.