Cranes Software recorded an impressive 34.1% yoy growth in its Top-line in 4QFY2009. The company registered an impressive performance in its key Proprietary Products Business, which soared by a strong 57.8% yoy. Cranes other business segment, Product Alliances, clocked a significant 51% yoy de-growth in sales. The company recorded a significant 1,433bp yoy (14.3%) contraction in its EBITDA Margins in 4QFY2009 due to higher Personnel and G&A Costs. Cranes recorded a disappointing 11.5% yoy fall in Bottom-line during the quarter. Bottom-line was impacted by the significant Margin contraction witnessed, as also significantly higher Interest costs and Depreciation charges. For FY2009, Top-line grew 28.7% yoy, Margins fell 747bp yoy and Bottom-line grew by 5.5% yoy. At the CMP, the stock is trading at 4.8x FY2011E EPS. We have a Neutral view on the stock.
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