Latent View Q1 Results — India’s most subscribed IPO reports 21% revenue growth, margin expands

Latent View Analytics Ltd. reported a 18.2% growth in its net profit compared to the year-ago period to ₹39 crore for the April-June period.

Revenue for the quarter increased by 21.1% to ₹179 crore from ₹147.7 crore last year.

Earnings Before Interest, Tax, Interest and Amortisation (EBITDA) increased by 36% from last year to ₹38.2 crore. EBITDA margin expanded by 240 basis points to 21.4% from 19% last year. The management said that the margin was lower on a sequential basis due to cyclical visa costs and salary increments.

Latent View Analytics is a digital analytics firm providing digital consumer data and analytics, enabling companies to predict new revenue streams, anticipate product trends and popularity.

Latent View CEO Rajan Sethuraman said that the company added several new marquee logos and continued to strengthen existing relationships. “The integration of the recent decision point acquisition has been successfully completed and this will bolster our footprint in the CPG vertical and in delivering business value to our clients through RGM,” he added.

Chief Financial Officer Rajan Venkatesan said that the company has fully utilised its IPO proceeds with the Decision Point acquisition. “We remain committed to investing for organic and inorganic growth opportunities,” he added.

Cash and investments at the end of the quarter stood at ₹1,133 crore.

In an interaction with CNBC-TV18 last month, Rajan Sethuraman, CEO of Latent View Analytics had said that the delay in closure of the Decision Point Analytics acquisition will impact the company’s revenue by $2 million. However, he said that the acquisition will start contributing to the topline from the July-September quarter.

The company is the most subscribed IPO in India, with an overall subscription of over 326.49 times. The stock has more than doubled from its IPO price of ₹197.

Shares of Latent View Analytics saw a spike when the results were announced but gave up most of those gains to end 1% higher on Friday at ₹534. The stock is up 18% so far in 2024.