- Posts revenues of Rs. 282.1 crores
for the half year
- Posts profit after tax of Rs. 44.5 crores for the
half year
- Announces the signing of an agreement to acquire Rhyme
Systems, a GBP 15 million revenue software products company in UK
- Revises the guidance and expects to end the FY2007 with revenues
between Rs. 620 crores to Rs. 640 crores and an EPS between Rs.16.0 to
Rs.17.0
Mumbai - October 19, 2006
- 3i Infotech Limited, a global provider of IT solutions and
services, today announced its operating results for the quarter ended
September 30, 2006. The company also announced the signing of an agreement
to acquire Rhyme Systems, a GBP 15 million revenue company in the UK with
products for the lucrative asset management business in the UK.
Consolidated results for Quarter ended Sept. 30, 2006:
- Revenue from operations was Rs. 145.0 crores, a growth
of 49% over the corresponding quarter in the previous year. Total revenue
stood at Rs. 148.9 crores, as against Rs. 98.4 crores for the corresponding
quarter in the previous year, registering a growth of 51%. On a sequential
quarter basis, the revenue from operations grew by 12.9%.
- Profit
before interest depreciation and tax (PBIDT) excluding other income grew by
71% to Rs. 34.1 crores, representing a PBIDT margin of 23.5% as against
20.5% for the corresponding quarter of the previous year. Including other
income, the PBIDT margin stood at 25.5% for the quarter as against 21.3% for
the corresponding quarter of the previous year. On the sequential quarter
basis the PBIDT excluding other income grew by 16.2%.
- Profit after
tax but before minority interest grew to Rs. 23.2 crores as against Rs. 13.3
crores for the corresponding quarter of the previous year. This represents a
net margin of 15.6%, as against 13.6% in the corresponding quarter of the
past year.
- Earnings per share (EPS) increased to Rs. 3.89 from Rs.
2.17 in the same quarter of the previous year.
Consolidated results for Half year ended Sept. 30, 2006:
- Revenue from operations was Rs. 273.5 crores, a
growth of 47.2 % over the corresponding period of the previous year. Total
revenue stood at Rs. 282.1 crores, as against Rs. 188.3 crores for the
corresponding period of the previous year registering a growth of 49.8%.
- Profit before interest depreciation & tax (PBIDT) excluding
other income grew by 73.3% to Rs. 63.4 crores as against Rs. 36.6 crores for
the corresponding period of the previous year, representing a PBIDT margin
of 23.2% as against 19.7 % for the corresponding period of the previous
year. Including other income, the PBIDT margin stood at 25.5% for the half
year as against 20.8% for corresponding period of the previous year.
- Profit after tax but before minority interest grew to Rs. 44.5
crores as against Rs. 23.6 crores for the corresponding period of the
previous year. This represents a net margin of 15.8 %, as against 12.6% in
the corresponding period of the previous year.
- Earnings per share
(EPS) increased to Rs. 7.57 from Rs. 3.76 in the same period of the previous
year.
The Company also today announced the signing of an
agreement to acquire UK based asset management software company, Rhyme
Systems.
Close on the heels of the Liverpool Victoria
Insurance client win, the strategic acquisition of Rhyme Systems would
complement 3i Infotech's foray into UK's lucrative BFSI market. Rhyme
Systems, a profitable company with revenue of over 15 million pounds
(equivalent to 28 million US dollars) has eight of the top eleven UK private
wealth asset management companies as its clients. Some of the prestigious
clients are Brewin Dolphin, Coutts RBS, Jupiter, M&G, Barclays and LCH
Clearnet. Rhyme has two products for the asset management industry, namely,
rhymeSIGHT & Quasar and three products for broking industry namely,
Altimis, Fiscal and Arrow. These products enable asset, fund and private
wealth managers to achieve optimum performance through market leading
software solutions. These products operate in the manufacturing and
operations elements of the asset management process, including portfolio
management, investment administration, clearing, settlement, order
management and accounting. This acquisition will be EPS accretive to 3i
Infotech shareholders.
Commenting on the results and
acquisition of Rhyme Systems, Mr. V. Srinivasan, Managing Director &
CEO, 3i Infotech Limited, said, "This has been an exciting quarter for 3i
Infotech both in terms of growth in revenue as well as expansion of our
solution offerings with acquisition of G4 technologies and Rhyme Systems."
He further added, "The Rhyme Systems acquisition is a move to
further consolidate our position as a strong BFSI player. We, as a solution
provider, constantly evaluate our BFSI offering vis--vis market demands and
grow our business by filling the gaps in our range of products and
solutions. As is evident from the company's growth over the past years, we
are now well poised to be amongst the most aggressive and fast growing
companies globally."
Commenting on this acquisition, Mr.
Chris Potts, CEO, Rhyme Systems, said, "With 3i Infotech's BFSI focus, our
asset management software perfectly fits in and we look forward to jointly
addressing the ever expanding BFSI segment, not just in UK but worldwide,
through 3i Infotech's wide range of offerings and regional reach."
Prof. Ashok Jhunjhunwala is Professor of the
Department of Electrical Engineering, Indian Institute of Technology,
Chennai, India and was department Chair till recently. He received his B.
Tech degree from IIT, Kanpur, and his MS and PhD degrees from the University
of Maine.
Dr. Ashok Jhunjhunwala has been awarded Padma Shri
in the year 2002. He has been awarded Shanti Swarup Bhatnagar Award in 1998,
Dr. Vikram Sarabhai Research Award for the year 1997, Millennium Medal at
Indian Science Congress in the year 2000 and H. K. Firodia for "Excellence
in Science & Technology" for the year 2002. He is a Fellow of INAE, INSA
and NAS and a member of Prime Minister Scientific Advisory Committee.
Dr. Jhunjhunwala leads the Telecommunications and Computer
Networks group (TeNeT) at IIT Madras. TeNeT group has incubated a number of
technology companies, which work in partnership with TeNeT group to develop
world-class Telecom Access products. The group has also incubated a company
that aims to install and operate telephone and Internet in every village in
India.
3i Infotech, which has a strategic focus on the Indian
e-Governance and the managed services businesses, will gain substantially
from the experience and knowledge of Dr. Jhunjhunwala in areas of networking
and telecommunications.
Change in Audit Committee
- Mr. Bruce Kogut, Director, has been appointed as a Member of the
Audit Committee
Business Highlights
- Software
products contributed 47% to the revenues for the quarter.
- Services
contributed 53% to the revenues for the quarter
- The company
acquired G4 Software Technologies (India) Limited, a specialist in the area
of Payments solutions, Back Office Exception Processing solutions and
Business Process Integration services in August 2006.
- In July 2006,
the Company launched its global product development center in Kochi, Kerala
- The company launched its PREMIA Insurance Broking eXchange in
support of the Insurance Brokers' Association of India's IT initiative
- The company also won the Government of Karnataka order to launch
the state's e-Governance initiative - "Nemmadi" - and bring government
services to the citizens' doorstep
- The company also made a foray
into the UK software product market by signing its first insurance client in
the country - Liverpool Victoria
- The company signed on Al Wathba
Company for Central Services (AWCCS) - one of UAE's leading fleet management
organizations - for its ORION™ solution
- The company added four new
million dollar clients
Awards and Accolades
- The company won the Asia Insurance Industry Award for Service
Provider of the year the second consecutive year
- The company has
also won the Frost & Sullivan Product Innovation Insurance software
award 2006
Commenting on the occasion, Mr. Hari
Padmanabhan, Deputy Managing Director, stated, "The quarter has been an
eventful one for 3i Infotech, both in terms of new business as well as
industry recognition. Winning the Asia Insurance Industry Award for the
second year in a row was the highlight of the quarter as it reaffirmed our
position in the market, as well as recognized our commitment to the
insurance industry.
"Additionally, in September 2006, we
launched the PREMIA Insurance Broking eXchange (IBX) in association with the
Insurance Brokers' Association of India which is a unique IT initiative for
the Indian insurance industry and we are confident that projects such as
these will drive our growth in global markets as well," he added.
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 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 are ISO 9001:2000 certified. The company also offers
other IT services such as 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 & 2006, Frost & Sullivan
Growth Strategy Leadership Award 2005 for India ERP Software for Small &
Medium Business (SMB) and Dubai Quality Appreciation Program award and Frost
& Sullivan Product Innovation Insurance Software Award.
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
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.