3i Infotech Limited, a global provider of IT solutions and services, has announced its operating results for the quarter ended December 31, 2005.
Key Highlights for Q3FY06 & nine-months ended December 31, 2005
• Consolidated revenue for the quarter, at *AED 95,272,332.96 (US$25,937,854.38) grew 52% over the corresponding quarter of the previous year. On a sequential basis, the revenue grew by 16%. Excluding the revenues from the acquired companies, the revenue for the quarter grew by 43% year on year.
• Consolidated revenue for the nine months ended December 31, 2005 at AED 251,862,715.57 (US$68,600,589.70), grew 44% over corresponding period of the previous year.
• Profit before interest depreciation and tax (PBIDT) for the quarter, at AED 21,442,379.38 (US$5,840,326.60), grew 96% on a year on year basis. The PBIDT margin during Q3FY06 is 23% compared to 17% in the corresponding period of the previous year.
• Profit before interest depreciation and tax (PBIDT) for the nine months, at AED 54,001,246.53 (US$14,708,550.69), grew 81% over the corresponding period of the previous year. The PBIDT margin during 9mFY06 works out to 21% compared to 17% in the corresponding period of the previous year
• Consolidated profit after tax for the quarter, at AED 13,573,230.46 (US$ 3,696,983.44), grew 57% over the corresponding quarter of the previous year. The consolidated profit after tax grew by 22% on a sequential basis
• Consolidated profit after tax for the nine months, which stood at AED 33,237,330.45 (US$ 9,049,671.13), grew 62% over the corresponding period of the previous year
• Consolidated earning per share (EPS) for the quarter works out to AED 0.22 (US$ 0.06)
• The nine-month consolidated EPS works out to be AED 0.54 (US$ 0.15)
• The company added 45 new clients during the quarter.
Key highlights:
The company continued its penetration in the BFSI products segment by recording significant wins both in the banking space and the insurance space during the quarter. The Company’s ERP product continues its pace of growth and penetration in all the global markets the company has its presence in.
• During the quarter the Company recorded its entry into the capital markets product space and the Anti money laundering product space through its acquisition of SDG Software Technologies (SDG), a Hyderabad based software product company. SDG Software Technologies is a profitable company with annual revenues of approximately AED 8,330,907.99 (US$ 2,268,088.00).
• The shareholders of the Company, have through the postal ballot process, authorised the company to issue equity or equity linked instruments up to 20 million equity shares, primarily to fund the aggressive growth strategy the company has set for itself.
During the period, the Company also acquired FormulaWare, a US-based software company which provides a robust Enterprise Resource Planning (ERP) solution for the process manufacturing industry, with special emphasis on the chemical and paint segments. FormulaWare Inc. has over 25 years of experience in providing business management software to clients
Outlook
Based on the robust growth the company is witnessing, it revises its guidance of revenue growth from 25% - 30% to 40% - 45% for the year and the EPS from between AED 0.71 to 0.79 (US$0.19 – 0.22) to AED 0.77 to 0.80 (US$ 0.21 to 0.22).
Commenting on the third quarter’s financial performance, Mr. V. Srinivasan, Managing Director & CEO, 3i Infotech Limited said, “We are pleased to announce that we have had an excellent quarter and the same is evident/reflected in our results The recent strategic buyouts/acquisitions of Innovative Business Solutions, Formulaware and SDG Software have strengthened our value proposition further in the verticals we operate in. I am confident that with our continued efforts and strong performance we will continue to consistently create value for our stakeholders and clients."
Mr. Hari Padmanabhan, Executive Director, 3i Infotech Limited said, “In the quarter we have bagged over 40 clients globally. We have made inroads with our Banking products in vast markets like Central Europe, Asia Pacific, others, and I believe this testifies our effectiveness in understanding and addressing local customer requirements around the world.”
Mr. Manoj Kunkalienkar, Executive Director, 3i Infotech Limited said, “3i Infotech has showcased healthy/consistent growth in its services business. We are keen on expanding our offerings in the Enterprise Application Integration (EAI), Business Intelligence (BI) and Security Consulting space and I am confident that acquisition of Innovative Business Solution is the step in the right direction."
About 3i Infotech Limited
3i Infotech Limited (www.3i-infotech.com) provides information technology solutions through its range of solutions for banking, finance, insurance, e-Governance, manufacturing, retail and 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*.
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.
