Consolidated PAT at Rs. 133 million up 66%
Chennai, October 28, 2005 - 3i
Infotech Limited, a leading provider of IT solutions globally, today
announced its operating results for the quarter ended September 30, 2005.
These results are without considering the results of operations of M/s
Innovative Business Solutions Inc, a company which was acquired by 3i
Infotech Limited in September 2005.
Consolidated revenue for the quarter at
Rs.984 million grew by 43% over the corresponding quarter of the previous
year. On a sequential basis, the revenue grew by 9%.
Consolidated revenue for the six months ended September 30,
2005 at Rs.1883 million grew by 40% over corresponding period of the
previous year.
Profit before interest
depreciation and tax (PBIDT) for the quarter, at Rs.210 million, grew by 81%
over the corresponding quarter of the previous year. The PBIDT margin during
Q2FY06 works out to 21% compared to 17% in the corresponding period of the
previous year. The margin expansion is a result of increase in gross margins
to 44% from 42% in the previous corresponding period and a reduction in
Selling, General and Administration (SGA) percentage.
Selling, General and Administration (SGA) expenses for the
quarter were 22% of the revenue as compared to 25% of the revenue in Q2FY05.
Consolidated profit after tax for the
quarter at Rs.133 million grew by 66% over the corresponding quarter of the
previous year. The consolidated PAT grew by 30% on a sequential basis.
Consolidated profit after tax for the
half-year, which stood at Rs.236 million, grew by 66% over the corresponding
period of the previous year.
Consolidated
earning per share (EPS) for the quarter works out to Rs.2.17 as compared to
EPS of Rs.1.73 in Q2FY05.
The half yearly
consolidated EPS works out to be Rs.3.76 as compared to EPS of Rs.2.30 for
the corresponding period of the previous year.
The company added 43 new clients during the quarter.
During the period the Company has
acquired Innovative Business Solutions Inc., a US based specialty IT
solutions company, for an aggregate consideration of USD 3.6 million. It is
a profitable company with annual revenues of approximately USD 7.2 million
and is a niche consulting services organization established in 1994. It has
about 75 employees and services an impressive list of customers in the
United States. The transaction is expected to be EPS accretive.
Investment Information and Credit Rating
Agency (ICRA) has assigned a CGR2 rating to the Corporate Governance
practices of 3i Infotech. The rating of CGR2 implies that the rated company
has adopted and follows such practices, conventions and codes as would
provide its financial stakeholders a high level of assurance on the quality
of corporate governance.
Dataquest has
ranked 3i Infotech as the fastest growing Indian software product company in
2004-2005, with respect to both domestic and overseas software product
sales.
3i Infotech has won the Growth
Strategy Leadership Award for India ERP software for SMB at the Frost &
Sullivan Technology Awards 2005 held in Mumbai in October 2005. The awards
recognize companies that demonstrate an exceptional growth strategy in the
Information & Communication Technology (ICT) industry.
3i Infotech has won the 2005 Service Provider
of the Year award at the 9th Annual Asia Insurance Awards held in Singapore
in September 2005. The awards recognize the pioneering work, contribution
and commitment to the insurance industry worldwide.
3i Infotech has been ranked amongst the top three Enterprise
Application Solutions (EAS) vendors in the Middle East & North Africa
(MENA) by market research firm IDC in 2005.
The company maintains its guidance of revenue growth
of between 25% to 30% for the year and an EPS of between Rs.8.50 to Rs.9.50.
The revenues and profits from the acquired company, Innovative Business
Solutions Inc, will be in addition to this.
Commenting on the
second quarter's financial performance, Mr. V. Srinivasan, Managing
Director & CEO, 3i Infotech Limited said, "Our positioning as
an IT solutions company with a healthy mix of products and services
continues to drive client and market penetration, thereby leading to a
healthy growth in all the markets we operate in."
Mr.
Hari Padmanabhan, Executive Director, 3i Infotech Limited said,
"Our performance reflects the steady progress we have made in building a
sustainable business model and represents a robust foundation for future
growth. I believe we have an excellent product strategy in place, which will
serve us well in the coming years."
Mr. Manoj
Kunkalienkar, Executive Director, 3i Infotech Limited said, "Highly
skilled employees, strong execution skills and the ongoing focus on
strengthening and deepening relationships with existing clients, while
maintaining a strong win rate, has further enhanced our competitive position
and provides a solid foundation for continuing success in the future."
The Board appointed Mr. Samir Kumar Mitter, Executive Director, Life
Insurance Corporation of India and Director and Chief Executive, LIC Housing
Finance Limited as an Additional Director of 3i Infotech. Mr. Mitter, holds
a Masters degree in Arts and is a graduate in Law.
Mr. Mitter's
deep knowledge and experience in the insurance industry would greatly
benefit the Company.
The Board has also approved, subject to
shareholder and statutory approvals, additional raising of capital of upto
USD 50 Mn by way of equity / equity linked instruments in the domestic or
international markets.
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 9001:2000-certified for its Infrastructure
Services and Business Process Outsourcing Operations.
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 45 countries and has a presence
across 4 continents and is the fastest growing Indian software products
company, both in India and internationally*.
M.B. Battliwala
General Manager
3i Infotech
Tower # 5,
3rd to 6th floors, International Infotech Park,
Vashi, Navi Mumbai,
400703. INDIA.
Tel: + 91.22.55928000
Fax: +91.22.55912030
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", etc., 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 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.