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3i Infotech's Q1FY06 consolidated PAT up 66% to Rs 103 million and consolidated revenue up 36% to Rs 899.5 million


Mumbai - July 22, 2005 - 3i Infotech, a global provider of IT solutions and services, today announced its operating results for the quarter ended June 30, 2005.

Key Highlights for Q1FY06

  • Consolidated revenue at Rs 899.5 million grew by 36% over corresponding quarter of the previous year. On a sequential basis, the revenue grew by 10%

  • EBITDA for the quarter at Rs 184.3 million grew by 67% over corresponding quarter of the previous year. The EBITDA margin during Q1FY06 works out to 21% compared to 17% in Q1FY05. The margin expansion has been achieved through increased gross margins owing to increased product license and AMC contribution and a reduction in SGA percentage

  • Selling, General and Administration expenses were 24% of the revenue as compared to 25% of the revenue in Q1FY05

  • Consolidated Profit After Tax at Rs 103 million grew by 66% over the corresponding quarter of the previous year. On a sequential basis, the Profit After Tax grew by 36%

  • Earning per share (EPS) for the quarter increased to Rs 1.58 as compared to EPS of Rs 1.15 in Q1FY05 (adjusted for face value change from Rs 5 to Rs 10). As the public issue proceeds were available only during the quarter, the same could be used for repayment of debt and preference capital only towards end of the quarter. Taking into account interest / preference dividend savings, the adjusted EPS works out to Rs 8.42 on an annualized basis.

  • The company added 40 new clients in the IT solutions space during the quarter

  • In the software product space, the company has won orders for each of its BFSI products during the quarter


Mr. V. Srinivasan, Managing Director & Chief Executive Officer, 3i Infotech said, "3i Infotech has seen a quarter of all round growth. The company has been able to gain higher value deals thereby leading to increased margins and enhanced future business potential. The company anticipates a growth in revenue for the full year FY 06 of 25% to 30% over the revenue in fiscal 2005, with EPS ranging from Rs 8.5 to Rs 9.5 for FY 06."

Software Products

Products contributed 45% of total revenues for the quarter due to greater penetration in existing markets. Mr. Hari Padmanabhan, Executive Director, 3i Infotech, states, "The pace at which our products are gaining acceptance justifies our investment and marketing efforts over the last few years. We are poised for greater success."

IT Services

Services contributed 55% of total revenue with growth being driven by system integration. Mr. Manoj Kunkalienkar, Executive Director, states, "Our experience in executing large mission critical system integration solutions has enabled us to win large deals."

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A bout 3i Infotech Limited (Formerly ICICI Infotech Limited)

3i Infotech Limited provides a range of information technology solutions for insurance, banking & finance ,
e-governance , manufacturing , retail & distribution . The company is SEI CMM Level 5 -compliant for its software business and ISO 9001-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 serves customers in 30 countries and has a presence across 4 continents.

For more information, please contact:


M.B. Battliwala
General Manager
3i Infotech
Tower # 5, 3rd to 6th floors, International Infotech Park,
Vashi, Navi Mumbai, 400705. INDIA.
Tel: + 91.22.55928000
Fax: +91.22.55912030
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.