PDF ver.


3i Infotech posts 18.3% QoQ growth & 53.3% YoY growth in revenues during the third quarter of FY07
  
 
Mumbai, January 18, 2007 - 3i Infotech, a global provider of IT solutions and one of India's largest and the fastest growing software products companies*, today announced its operating results for the quarter ended December 31, 2006. 

Consolidated results for the quarter ended December 31, 2006:  

  • Consolidated revenue from operations for the quarter at Rs. 171.6 crore grew 53.3% on YoY basis. On a sequential basis, the revenue from operations grew by 18.3%. On organic basis, the revenue from operation on a sequential basis grew by 9.5%.
  • Profit before interest, depreciation and tax (PBIDT) for the quarter, at Rs. 48.7 crores, grew by 89.2% on YoY basis. This represents a PBIDT margin of 27.4%, as against 22.5% in the corresponding quarter of the last year.
  • Consolidated profit after tax but before minority interest & exceptional items for the quarter, at Rs. 27.9 crores, grew by 69.8% on YoY basis. The consolidated PAT grew by 20.6% on a sequential basis.
  • During the quarter the company has changed its accounting policy with respect to software products capitalized by charging off software product development costs as incurred, as against the earlier practice of capitalizing such development costs. If the company had not carried out this change in policy the Profit after tax but before minority interest & exceptional items, would have been higher by Rs. 4.3 crore
  • Consolidated earning per share (EPS) excluding exceptional items for the quarter works out to Rs. 4.8 as compared to EPS of Rs. 2.7 in Q3FY06 and Rs 3.9 in Q2FY07.


Consolidated results for the nine months ended December 31, 2006:

  • Consolidated revenue from operations for the nine months ended December 31, 2006 at Rs. 445.1 crores, grew by 49.5% over corresponding period of the previous year.
  • Profit before interest, depreciation and tax (PBIDT) for the nine months, at Rs. 120.7 crores, grew by 86% on YoY basis
  • Consolidated profit after tax but before minority interest & exceptional items for the nine months stands at Rs. 72.4 crores, signifying a growth of 80.7% on YoY basis.
  • The nine-month consolidated EPS excluding exceptional items works out to Rs.12.4, as compared to EPS of Rs. 6.5 for the corresponding nine-month of the last year.
  • During the period the company has changed its accounting policy with respect to software products capitalized by charging off software product development costs as incurred, as against the earlier practice of capitalizing such development costs. If the company had not carried out this change in policy the Profit after tax but before minority interest & exceptional items would have been higher by Rs. 4.3 crore.


Commenting on the positive performance of the company in the quarter, Mr. V. Srinivasan, MD & CEO, 3i Infotech , said, "3i Infotech has a two-pronged growth strategy. While we continue to aggressively grow our existing line of products organically, we are also looking to fill gaps in our offerings through acquisitions. This has allowed us to build a formidable line of end-to-end, integrated product and solution offerings. Our results are therefore a reflection of our strategy and growth trajectory which we have envisaged for ourselves."
 
The Board appointed Mr. Amar Chintopanth, Chief Financial Officer (CFO) as Executive Director & CFO.

The Board has also passed a resolution authorizing the issue of further equity shares / equity linked instruments, to raise resources from the domestic or international markets, of up to 2 crore shares subject to shareholder and other requisite approvals.
 
Business Highlights  

Acquisitions:

  • Acquired stake in e-enable technologies
  • Acquired Stex Software Technologies Ltd., a company specializing in workflow and document imaging software and associated services
  • Acquired Rhyme Systems, a software products company in the BFSI segment in the UK.

  
Others: 

  • Launched Technology Center of Excellence in partnership with Oracle in order to develop advanced technologies for the Insurance industry
  • Closed a €15 mn FCCB Issue
  • Launched ORION@Apparel, a suite of software products to address the technology and automation needs of India's booming apparel industry
  • Commenced Saudi Arabia operations with office in Riyadh and plans to open offices in Jeddah and Dammam shortly

    
Awards and Accolades   

  •  The company has won the prestigious Frost & Sullivan Product Innovation Award 2006 for its Insurance software PREMIA™ solution
  • During the quarter, 3i Infotech was conferred the 5A2 rating by Dun and Bradstreet which indicates that the company is financially sound with low risk

 
About 3i Infotech Limited   
3i Infotech is one of the top 4 Indian Software Products Companies,* and for the last 2 years has had the distinction of being among the 2 fastest growing Indian Software Products companies.* The company provides software solutions for the banking, insurance, capital markets, mutual funds, government, manufacturing, retail and distribution verticals. The company services customers in over 45 countries across 5 continents. 
 
3i Infotech's software business is SEI CMMI Level 5 compliant and its Infrastructure Services and Business Process Outsourcing Services are ISO 9001:2000 certified. The company also offers other IT services such as software development and maintenance, managed services and information security consulting.
 
The company also has been the recipient of prestigious international awards such as the Asia Insurance Industry Award for Service Provider of the Year - 2005, Frost & Sullivan Growth Leadership Award 2005 for India ERP Software for Small & Medium Business (SMB) and Dubai Quality Appreciation Program award.. 
  
  * Dataquest
 
For more information, please contact: 
M.B. Battliwala
Senior General Manager
3i Infotech Limited
Akruti Centre Point, 6th Floor
M.I.D.C Central Road
Next to Marol Telephone Exchange
Andheri (East), Mumbai - 400 093
India
Tel 91-22-39145560
Fax 91-22-39145520
Email: corporate@3i-infotech.com   
 
Disclaimer
Except for the historical information contained herein, statements in this release, which contain words or phrases such as "will", "would", "expect", "believe", and similar expressions or variations of such expressions may constitute "forward-looking statements". These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of our principal international markets, the performance of the industry sectors in which our clients are based, the performance of the information technology industry sector world-wide, competition, our ability to obtain statutory and regulatory approvals and to successfully implement our strategy, future levels of our growth and expansion in business, technological implementation, changes, advancements, and redundancies, the actual demand for software products and services, or the future potential or feasibility thereof, changes in revenue, income or cash flows, our market preferences and our exposure to market risks, as well as other risks. 3i Infotech undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.