Latent View Analytics Ltd., a data analytics company, will launch its three-day initial public offering on Wednesday, joining a myriad of companies in their race to list on the bourses in a boom year for maiden offers.
Financials
Latent View Analytics’ revenue from operations rose over the year earlier in the quarter ended June. Its operating margin expanded on account of lower travel expenses and cost efficiencies.
For the full fiscal ended March 2021, while revenue declined, margin improved.
But as Covid-led restrictions ease, and onsite and travel activities gather pace, margins may contract and remain range-bound at 25-30%.
Peers
Latent View Analytics competes with Mu Sigma, Fractal Analytics, Tiger, Palantir, Accenture, Tata Consultancy Services Ltd. and Capgemini.
Risks
If clients do not renew contracts or expand the scope of services, or if its long-term relationships with its largest clients are impaired or terminated, its revenue could decline. Revenue from operations from top five clients stood at 59.3% in the quarter ended June.
The ongoing impact of the Covid-19 pandemic on its business and operations is uncertain and it may be significant and continue to have an adverse effect on its business, operations and future financial performance.
Derives more than 90% of revenue from clients located in the U.S. and any adverse developments in this market could affect business.
Inability to derive benefits from investment in few of its subsidiaries to augment their capital base for future growth.
Revenues are highly dependent on a limited number of industry verticals, and any decrease in demand for outsourced services in these industry verticals could adversely affect business.
Dependent on key managerial personnel and delivery and sales personnel, and the loss of, or inability to hire, retain, train, and motivate such qualified and skilled personnel could adversely affect business. It had a attrition rate of more than 20% in the quarter ended June.
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