TXT e-solutions - Profitable growth

TXT e-solutions’ focus on long-term customer collaboration combined with recent fintech acquisitions has helped the company report revenue and profit growth over the first nine months of FY20 (9M20) despite pressure from COVID-19 restrictions. The company is focused on extending its product offering and broadening its market exposure, with the recent acquisition of HSPI adding consulting services and public sector customers to the Fintech division. We have revised our forecasts to reflect the acquisition and Q3 results, with normalised EPS upgrades of 3.9% in FY20e and 19.3% in FY21e.