Intellect announces Q 1 Results Expands Digital footprint by winning two large deals

by Shrutee K/DNS 

India : Intellect Design Arena Ltd, a specialist in applying true Digital Technologies across Banking & Insurance, announced its first quarter results for FY 2016-17 today.  Intellect drives some of the most successful digital transformations across Global Consumer Banking (iGCB), Global Transaction Banking (iGTB), Risk, Treasury & Markets (iRTM) and Insurance (Intellect SEEC).

 I. Executive Summary

 Revenue-Revenues for the quarter ended 30^th June 2016 grew by 7% Y-o-Y and stood at Rs. 205.80 Cr (in dollar terms, 30.74 Mn) as against Rs. 192.92Cr (in dollar terms, 30.39 Mn) in the same period last year.

Margins-Gross Margin stood at 50.8% as against 51.6% in the same period last year.

Digital led wins-Intellect was awarded 12 Digital led order wins in Q1 FY17 including two large transformational Digital wins.

Investment in SG & A- Investment in Selling & Marketing and General & Administrative expenses (SG & A) for Q1 FY 17 stood at Rs. 101 Cr (49.2% of Revenue).

Strengthening leadership- The leadership team has been augmented with an addition of 14 Senior Executives from the Industry.

The iGTB Oxford School of Transaction Banking- Oxford and iGTB have jointly set up iGTB Oxford School of Transaction Banking and their first programme was offered in July 2016

VI. Management Statement

Arun Jain, Chairman and Managing Director, Intellect Design Arena Limited said, “This quarter has been eventful with winning transformational deals, product launches and strategic leadership additions.  However, a few deals with UK based banks have been deferred due to Brexit. With a healthy pipeline, I am confident that we will achieve our set annual revenue guidance in the range of Rs. 990 cr to Rs. 1020 crore for this financial year. ”

S Swaminathan, Chief Financial Officer, Intellect Design Arena Limited, said, “We would have preferred Q1 to start on a slightly higher note.  This quarter is not a representative quarter for performance. However, it is vital to keep in mind that, given the nature of the business, this is an Annual and not a quarterly game. We understand various levers of costs management for a product business and our cost has now stabilized and are perfectly predictable.”