Dev Information Technology Limited's (NSE:DEVIT) Earnings Grew 45.00% In A Year. Was It Better Than Its Long-Term Trend?

Assessing Dev Information Technology Limited's (NSEI:DEVIT) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess DEVIT's recent performance announced on 31 March 2017 and evaluate these figures to its long-term trend and industry movements. Check out our latest analysis for Dev Information Technology

Did DEVIT beat its long-term earnings growth trend and its industry?

I look at the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This blend allows me to assess various companies in a uniform manner using new information. For Dev Information Technology, its latest earnings (trailing twelve month) is IN₨29.86M, which, in comparison to last year’s level, has climbed up by 45.00%. Since these figures may be relatively short-term thinking, I’ve created an annualized five-year figure for Dev Information Technology's earnings, which stands at IN₨15.99M This means on average, Dev Information Technology has been able to gradually grow its earnings over the past couple of years as well.

What's the driver of this growth? Well, let’s take a look at whether it is merely owing to an industry uplift, or if Dev Information Technology has experienced some company-specific growth. Over the past couple of years, Dev Information Technology grew its bottom line faster than revenue by successfully controlling its costs. This has led to a margin expansion and profitability over time. Scanning growth from a sector-level, the IN it industry has been growing its average earnings by double-digit 10.82% over the prior year, and 12.16% over the past five years. This shows that whatever uplift the industry is profiting from, Dev Information Technology is capable of amplifying this to its advantage.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research Dev Information Technology to get a more holistic view of the stock by looking at:

• 1. Financial Health: Is DEVIT’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
• 2. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2017. This may not be consistent with full year annual report figures.

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.