Why Accelya solutions is falling continuously? Is it the impact of high crude oil price lately? or any other news. or just bearish sentiment on election outcome. The results seemed to be OK but the price has gone below 900…
Results are down from previous Q
There are more fliers than ever before so why is the aviation sector stressed… Fantastic weekend read. Incisive case study on Indian aviation sector post Jet Airways fiasco.
Some highlights of the article
- Low fares in Aviation not rational as compared to airlines cost. Not sustainable in the long run. But companies do it to gain market share sacrificing viability. Passenger air traffic grew from 21 million in 1995 to 30 million by 2005, but it went four-fold from 30 million to 127 million by 2018
The aviation industry is a cyclical business with each cycle lasting about seven or eight years.
The successful airlines ensure they lose less during the bad times and make enough during the good times to cover up for the losses in the down-cycle - Indigo did a bulk deal of Airbus A320 & hence got some real good discount, free maintenance contracts etc. All the aircrafts are standard so fuel cost remains predictable & under control. This bulk deal was the game changer for Indigo.
- Go Air has to ground some 10 odd aircraft due to engine issues.
- Low cost is a philosophy not a strategy which LCCs understood well…
5)ATF tax at 40% is highest in the world. Govt reluctant to do anything about it.
Indigo major market share benefeciary of Jet downfall, but cannot go beyond 50% due to antitrust issues. so its now looking at middle east markets.
6)Also saddled with a large debt of Rs. 575 billion, the state-owned Air India posted a loss of Rs.53 billion in FY18. No takers in recent bidding.
https://www.outlookbusiness.com/amp/the-big-story/deep-blues-5142?
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June 2019 shareholding pattern indicates substantial reduction by Valuequest India Moat Fund.
2.69 lakh shares sold between September 2018 to June 2019.
Yes the holding percentage of Valuequest Moat fund now is 1.43% ,which used to be more than 3% couple of quarters back.So Anyone please explain why they are reducing the shareholding so rapidly?I have not heard any such bad news regarding the company.And fundamentals also not suggesting any such downfall.Kindly advice.
Thanks,
Deb
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A very legit reason could be the availability of better investment opportunity. Had the investment gone sour they could have exited completely.
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There is something called liquidity. You cannot enter and exit stocks at will. Even if an investment goes sour you will have to exit slowly!
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Investment gone sour means fundamental of the business or company has changed. Do not see any such thing except company has under performed for last couple of years on business and make market asvwell
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Some talks around sale of Accelya (Parent entity) by Warbug Pincus.
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It would synergistic if Amedus buys it . Thanks for sharing.
any idea on june qtr result for company? dont see any date for board meeting yet?
what does it mean for the shareholders of Accelya if Amedus buys it ?
i have a small tracking position and unable to build conviction to buy more due to this new development !
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Results will be on 28th. Their financial year ends in June (May be that’s how parent entity financial year ends ): https://www.bseindia.com/xml-data/corpfiling/AttachLive/0d082612-86a6-431c-bbb4-d11605551b95.pdf
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good results from accelya , PAT up ~20% in FY19, but still dividend payout reduced by the company to 45% from 77%
32 rs dividend on 71.27 EPS compared to 46 div on 59.74 EPS.
https://www.bseindia.com/corporates/anndet_new.aspx?newsid=fcf0e777-1037-4ffc-baed-8402c0969a65
Does cut in dividends despite good profits and thereby building of cash on books signal any CapEx, acquisition or delisting plans? Any thoughts?
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The dividend is still more than 4%, so can be justified. Balance sheet shows some increase in receivables which needed to be funded. Could be possible reason for lowering dividend.
company has maintained high dividend payout policy since last 6-7 years and hence one would expect that not to change unless some specific reason. earlier reason for high payout were no need for additional funds and hence PE promoter cashing out. as the new promoter warburg is still a PE fund, one would tend to assume, lower dividend payout is to retain high cash and that can indicate delisting plan. warburg pincus bot 75% at almost 100% higher than CMP and gave open offer to buy the rest at 1250, so today they are getting a choice to delist at much lower price when company profitability is actually higher and company is valued at valuation.
other reason could be related to this news though i am still not sure of the reason to retain higher cash here.
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Press Release :
“I am happy to announce that our PAT has crossed the Rs 100 crore mark. We continue to invest in our business and our new revenue accounting solution (Version 20) has seen good traction from the industry. This year, we will consolidate our offices in the Mumbai region into new office premises at 247 Park, Vikhroli, Mumbai, which will be operational in the
second quarter of FY20. The new office design will enhance employee experience and productivity. The company will fund the cost of furniture and fitouts for the premises of approx. 90,000 sq. ft. out of its internal accruals.”
I guess spike in receivables and shifitng of office premise led to a lower dividend this quarter. If you see the cash and cash equivalent balance it has fallen from Rs 65 Crs to around Rs 42 Crs. On pure cash flow basis dividend declared seems adequate and prudent.
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Trade Receivables have not gone up. They are pretty much at same level of 88 cr odd if you combine trade receivables and unbilled receivables.
Rather the money of about 33 cr extra compared to last year (20 cr from investments + 13 cr new money), went into other assets, which I am not sure what they are.
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Consolidation of offices seems good step. Should improve efficiency.
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