Consolidated PAT at Rs 577 million up 80%
Mumbai, April 19, 2006 : 3i Infotech Limited, a
global provider of IT solutions and services, today announced its operating
results for the quarter and year ended March 2006.
- Revenue for the year was Rs. 4240 million, representing a
YoY growth of 45%.
- Profit before interest depreciation & tax
(PBIDT) grew by 81% to Rs. 920 million, representing a PBIDT margin of
21.7%, as against 17.4% for the previous year. Profit after tax, at Rs. 577
million, represents a net margin of 13.6%, as against 11% in the previous
year.
- Earnings per share (EPS) increased to Rs. 9.51 from Rs. 6.59
in the previous year, representing a growth of 44%.
- Revenue for the quarter was Rs. 1216 million, a growth of
49% from the corresponding quarter of the previous year.
- Profit
before interest depreciation & tax (PBIDT) grew by 79% to Rs. 271
million, representing a PBIDT margin of 22.3% as against 18.5% for the
corresponding quarter of the previous year. Profit after tax at Rs. 176
million represents a net margin of 14.5%, as against 9.2% in the
corresponding quarter of the previous year.
- Earnings per share
(EPS) increased to Rs. 3.0 from Rs. 1.6 in the same quarter of the previous
year.
The Board of Directors recommended a dividend of
Rs. 2.00 per share (20% on par value of Rs. 10 per share) for fiscal 2006.
Commenting on the results, Mr. V. Srinivasan, Managing
Director & CEO, 3i Infotech Limited said, "The growth that we have
achieved during the year and the quarter is a result of a two-pronged
strategy comprising aggressive sales & marketing, and keeping an eye on
cost of operations. This has ensured that while we have grown substantially,
our costs have been maintained at reasonable levels. This performance gives
us the ability to look to the year ahead with growing confidence."
Guidance for FY07: The
Company anticipates a growth of 25% to 30% in revenues in FY07 with earnings
per share of between Rs. 13.00 and Rs. 13.50.
- Software products
contributed 46% of the revenues for the year and 48% in the quarter. The
company made good inroads in the USA with its insurance product and into
Central Asia and the Far East markets with banking products. The ERP product
of the company continued to penetrate further in all the markets that the
company is operating in.
- Services contributed 54% to the revenues
for the year and 52% for the quarter. During the year the company increased
its penetration in the areas of business intelligence, system integration,
enterprise application integration and security consulting.
- The
Company also successfully launched and priced an offering of Foreign
Currency Convertible Bonds of $50 million. The bonds are listed on the
Singapore Stock Exchange and are convertible over a five year period.
- During the fiscal 3i Infotech successfully launched AMLOCK™, an
Anti Money Laundering (AML) and Fraud Detection software that will cut
across various segments in the financial services space, including
Insurance, Banking and Capital Market intermediaries like Brokerages, Mutual
funds and Registrars.
- In order to consolidate its various erstwhile
banking products, the Company has re-branded these under the single brand
name - Kastle. With this transition, 3i Infotech's Kastle brand of banking
products will be known as KASTLE Core Banking, KASTLE Universal Lending,
KASTLE Treasury, KASTLE Asset Liability Management, KASTLE Factoring, KASTLE
Wealth Management, KASTLE Risk Management, and KASTLE Anti Money Laundering.
- The period saw the company making inroads in the capital markets
and the anti money laundering space. These areas along with the growth that
the company anticipates through penetration in the Mutual Fund industry are
expected to contribute significantly to the company's growth for the coming
year.
- SDG Software Technologies (SDG), a Hyderabad based
software product company to foray into the capital markets and the anti
money laundering segments.
- Innovative Business Solutions Inc., a US
based specialty IT solutions company providing niche consulting services in
key growth segments including Enterprise Application Integration, Business
Intelligence and IT consulting services.
- FormulaWare, a US-based
software company which provides a robust Enterprise Resource Planning (ERP)
solution for the process manufacturing industry.
- Datacons, a
Bangalore based software products company offering niche products for the
Mutual Funds segment.
- 3i Infotech received the following
awards and recognition in the fiscal:
- Asia Insurance's Service
Provider of the Year Award 2005
- Dubai Quality and Appreciation
Program award for excellence
- Frost & Sullivan Growth Strategy
Leadership Award for ERP in the SMB segment
- An IDC report has
ranked 3i Infotech among the Top 3 ERP solution providers in the Middle East
and North Africa (MENA) region
- 3i Infotech is one of the top five
Indian Software Product Companies as per Dataquest *
Commenting on the occasion, Mr. Hari Padmanabhan, Deputy Managing Director
stated, "Satisfied customers are one of our most important assets. While
achieving growth we have tried to ensure that we have a satisfied client
community, which will help us in building credibility and thereby fuelling
further growth."
3i Infotech Limited ( www.3i-infotech.com ) provides
information technology solutions through its range of solutions for banking,
insurance, capital markets, mutual funds, e-Governance, manufacturing,
retail & distribution. Its software business is SEI CMM Level 5
compliant and is ISO 9001:2000 certified for its Infrastructure Services.
Using its domain knowledge and through continuous investment in
technologies, 3i Infotech Limited helps corporations in their businesses
through its expertise in enterprise-class software solutions, software
services, information security consulting, IT infrastructure and disaster
recovery solutions.
3i Infotech is one of the top 5 Indian
Software Product Companies* with a presence across 5 continents and
servicing customers in 45 countries. It is the fastest growing Indian
Software Product Company in 2004-05, with respect to both domestic and
overseas software product sales*.
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.