They had aggressive targets for 2018 in 2016 which did not end well because of impairment as seen in Fy17 annual report :
The Company has incurred substantially on development of software testing products and tools over the past few
years. The Company has been keeping a keen watch on developments and continuously assesses any potential
impairment of such tools/products. While the independent/pure play testing space has been growing aggressively,
the offerings by service providers need to be continuously modified to suit the market needs such as DevOps, Agile
and the like. Also, the independent/pure play testing market space has witnessed entry of several new independent
providers and disruptive changes like the advent of cloud-based offerings and using machine learning, artificial
intelligence etc. In light of these changes and the overall market outlook for our software products in the testing
space, the Company has carried out an impairment analysis of such products. Based on such analysis and in the
absence of estimates of future cash flows arising from the sale of product licenses for these tools the Company has
decided to fully impair such tool developments costs amounting ` 3,32,07,91,707/- on a conservative and prudent
basis in line with the requirements of the accounting standards. Further, as per the revised strategy the Company
shall not be carrying forward expenditures of such nature and will charge off the same in the year in which
it spent.
They are looking at 18% organic rev cagr - 200 to 650 by 2028
38% inorganic cagr - 200 to 1000 by 2028 (Million $)
Took a small entry recently. Two things to ponder:
- Can management come close to its aggressive goals this time ?
- Quality of Inorganic Acquisition - The subsequent goodwill - Impairment if they pay a premium
Kindly share if you have tracked in depth. Any research report would be much appreciated