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3i Infotech's revenue from operation grows by 45% in the 1st quarter fiscal 2007

 
Total revenue grows to Rs 133.22 crores from Rs 89.95 crores for the corresponding quarter of the previous year  
 
Consolidated PAT for the first quarter of FY07 stands at Rs 21.35 crores, up from Rs10.30 crores for the corresponding quarter of the previous year 
 
Mumbai - July 20, 2006 - 3i Infotech Limited, a global provider of IT solutions and services, today announced its operating results for the quarter ended June 30, 2006.
 
Financial Highlights
 
Consolidated results for the quarter ended June 30, 2006:  

  • Revenue from operations for the quarter was Rs 128.46 crores, a growth of 45% over the corresponding quarter of the previous year. Total revenue stood at Rs133.22 crores, as against Rs 89.95 crores for the corresponding quarter of the previous year, registering a growth of 48%.

  • Profit before interest depreciation & tax (PBIDT) grew by 85% to Rs 34.09 crores, representing a PBIDT margin of 22.8% (excluding other income) as against 19.2% for the corresponding quarter of the previous year. Including other income, the PBIDT margin stood at 25.6% for the quarter as against 20.5% for the corresponding quarter of the previous year.

  • Profit after tax grew to Rs 21.35 crores as against Rs 10.30 crores for the corresponding quarter of the previous year. This represents a net margin of 16.0%, as against 11.4% in the corresponding quarter of the previous year. Excluding other income, the net margin stood at 14.0% for the quarter as against 10.5% for the corresponding quarter of the previous year.

  • Earnings per share (EPS) increased to Rs 3.68 from Rs 1.58 in the same quarter of the previous year. EPS excluding other income increased to Rs 3.05 from Rs 1.37 in the same quarter of the previous year.

 
Commenting on the results, Mr. V. Srinivasan, Managing Director & CEO, 3i Infotech Limited, said, "Our business strategy has always been to provide what the market needs. We continue to achieve this through organic and inorganic means, both by developing and acquiring products. This strategy has helped us in client penetration, leading to growth, both through fresh customer acquisitions and cross selling to existing customers. We will continue to pursue this line of action, which will enable us to make the business model more customer centric, leading to further growth." 
 
Business Highlights  

  • Software products contributed 47%** of the revenues for the quarter
  • Services contributed 53%** to the revenues for the quarter
  • During the quarter 3i Infotech signed on 17 new customers for its Banking & Insurance products, KASTLE™ and PREMIA™ respectively, including Malaysia's Credit Guarantee Corporation and the Allied Insurance Company of the Maldives Pvt. Ltd.
  • The company added four new million dollar clients

 
BPO Strategy   
3i Infotech has over the years gained substantial domain expertise in the non-voice based BPO services, having been the registrar and share transfer agent for the ICICI Bank for several years and also having done BPO work for the Bank's other group companies and some other banks in India. In addition the company also has very proven domain expertise in the BFSI vertical, having several software products for banking, insurance, mutual funds and other capital markets related areas. Not surprisingly, over 70% of the company's revenue is derived from the BFSI segment. To leverage all these factors, it has been decided to pursue BPO as an important line of business, initially in India and subsequently even globally. To facilitate the same, the company has made a strategic investment of 51% in M/s Delta Services (India) Pvt Ltd, which has a great deal of experience in the BPO domain relating to the Banking & Financial Services segment. Mr. Ravi Jagannathan, who earlier launched our UK operations, will now be based in India and will spearhead the company's foray into the BPO space.
 
  Industry Certifications and Recognition  
 
3i Infotech received the following additional recognitions in the quarter: 

  • 3i Infotech has been adjudged the 4th largest Indian Software Products Company for the year 2005-06. *
  • For the last two years, 3i Infotech has been among the top 2 Indian Software Product companies in terms of revenue growth rate. *
  • Services contributed 53%** to the revenues for the quarter
  • CMMI Level 5 Certification: 3i Infotech's operations of Development, Maintenance, Customization and Implementation of Software Projects, Services and Banking Products are certified at Level 5 of CMMI Model from SEI
  • ISO 27001:2005 certification: 3i Infotech has become one of the first few organizations in India to get the ISO 27001:2005 certification for its Thane Data Center. The Data Center currently hosts the prestigious Tax Information Exchange System (TINXSYS), an eGovernance initiative supported by the Ministry of Finance of the Government of India, as well as all the states and union territories

 
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 raising quality standards. New customers such as the KazInvest Bank, Credit Guarantee Corporation of Malaysia and the Allied Insurance Company of the Maldives Pvt. Ltd have reinforced 3i Infotech's leadership across regions. Additionally, the CMMI level 5 and ISO 27001:2005 certifications continue to attract new business and ensure that we are servicing them to the highest standards possible." 
 
About 3i Infotech Limited  
3i Infotech ( www.3i-infotech.com ) is one of the top 4 Indian Software Product Companies,* and for the last 2 years has had the distinction of being among the 2 fastest growing Indian Software Product 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 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 
 
** Calculated considering Other income as a part of Services Revenue   
 
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.