ICICI Direct
Target: ₹6,225
CMP: ₹5265.55
Affle India’s revenues rose 76.9 per cent y-o-y (down 5.9 per cent q-o-q due to seasonally weak quarter) to ₹141.6 crore, mainly led by healthy growth in organic revenues (up 45 per cent y-o-y), inorganic revenues (at ₹25.5 crore). EBITDA margins were down 201 bps y-o-y (115 bps q-o-q) to 24.4 per cent. PAT was up from ₹15.3 crore in Q4-FY20 to ₹58.5 crore in Q4-FY21 due to one off other income of ₹34 crore. Normalised PAT was up 73.6 per cent y-o-y to ₹26.5 crore.
The company has seen a healthy improvement in CPCU business. We believe this is mainly due to improvement in advertising budget and shift of spends towards mobile advertising. As per the company, emerging markets penetration of mobile advertising is 20 per cent of overall marketing spend vs. 50 per cent globally, representing robust growth potential in the coming years.
Going forward, we expect this improving revenue growth to continue mainly led by shift of advertising budget towards digital medium, higher online shopping and improved penetration in tier-2, tier-3 cities of India. This, coupled with geographic expansion and significant shift among consumers to adopt digital technology globally will drive long term revenues.
