Chennai (India), 10th May, 2021: Intellect Design Arena Ltd, a cloud-native, future-ready, multi-product FinTech company for the world’s leading financial and insurance clients, announced its fourth quarter results for FY 2020-21 today.
Intellect’s focused strategy revolves around Technology, Markets and Products.
For the Quarter ending March 31, 2021, Intellect won a large transformational deal with Societe Generale , one of Europe’s leading financial service providers with over 30 Mn clients and 1,33,000 employees across 61 countries, for its Liquidity Management & Payments platform. With earlier wins in the US, Canada, UK, Sweden, Austria and Germany, this win has reaffirmed the acceptance of the Intellect Fintech architecture by advanced market customers against competition from players in those very markets. Apart from this deal win, Intellect has also won deals in the Middle East, APAC and Africa as well. These wins’ showcase Intellect’s three-pronged strategy that focused on Technology, Market and Products.
FY21 saw Intellect significantly scale up its SaaS revenue streams which grew by 47% YoY. This bolstered the overall License revenue growth by 35% over FY20. License linked revenues have grown by 31% – moving up 800 basis points as a percentage of revenue to 54% against 46% of revenues last year. These metrics establish Intellect’s growth journey as a Cloud native Fintech Product platform.
A higher share of revenue from the Advanced Markets, a higher salience of License Linked Revenues and a higher margin driven by design thinking led delivery excellence – collectively have led to a multi-fold growth in EBITDA as well as Profit after Tax. This was supported by savings in SG&A costs from COVID-19 induced reduction in Travel/Event costs and completion of one-time cloud related investments in FY20.
Calibrated Predictable Growth
Q4 FY21 – Financial Highlights
I. License, AMC and SaaS Revenue:
Gross Margin, EBITDA and Net Profit
Digital led wins and implementations
Collections and Net DSO
FY21 – Financial Highlights
License, AMC and SaaS Revenue:
EBITDA and Net Profit:
Digital led wins:
II. Management Commentary
Arun Jain, Chairman and Managing Director, Intellect Design Arena Limited said, “Digital adoption not only accelerated this year but fundamentally altered the way technology impacts the business of banking and insurance. This was led by regulation, fintechs, changing consumer preferences and COVID. Our technologically agile, domain focused R&D teams responded by delivering 4 exponential technologies whose acceptance in technologically advanced markets is an acknowledgement of the rapid adoption of Intellect’s hyperscale Fintech architecture in highly competitive markets. Our move towards an open finance architecture, driven by our proprietary iTurmeric suite of 900 plus APIs, provide the ability to our customers to adopt a flexible, composable and contextual product design strategy for their technology upgrade path. This is not only at a substantially lower TCO than our competitors but also helps in future proofing the technology for our customers. We, thus, remain confident of repeatable and profitable growth in future years as we continue to monetize Intellect’s advanced technologies.”
Venkateswarlu Saranu, Chief Financial Officer, Intellect Design Arena Limited said, “Intellect has delivered EBITDA of 3576.5 Mn, cash generation of 3347.8 Mn and profit of 2627.7 Mn. These are indicators of all round performance of the Intellect business.”
III. Digital Deals
With our ground-breaking Digital 360 approach, Intellect has been able to address all aspects of our customers’ digital requirements. Q4 FY21 recorded 12 Digital led wins including 4 large digital transformation deal wins.
Large Digital Transformation deal wins
Intellect bagged a large transformational deal with Societe Generale, one of Europe’s leading financial service providers with over 30 Mn clients and 1,33,000 employees across 61 countries. The bank has chosen iGTB’s world-leading Liquidity Management System (LMS) and Payments platform. The bank is particularly enthusiastic to work with iGTB, who has a strong track-record of working with large global banks. The bank is confident that together they can bring best-in-class solutions to its corporate clients.
One of the top 3 British financial institutions has chosen iGTB again to continue their 15+ years of relationship to upgrade their Liquidity Management platform to leverage micro-services enabled architecture and incorporate standalone negative interest rate requirements to service their existing corporate portfolio, reducing complexity and ease of integration of their underlying systems.
One of the top banks headquartered in Singapore has chosen Intellect Digital Cards. The Bank has decided to start Credit Card operations and has selected Intellect Digital Cards system. Intellect Digital Cards support both traditional magnetic stripe and EMV chip cards complying with the latest EMV mandates, thereby enabling banks to provide a better customer experience.
One of the acknowledged and unique banks in India has chosen Intellect Digital Core. A specialised financial institution, wholly owned by the Government of India has chosen Intellect Digital Core. The solution provides the bank with the best in class core banking platform with the flexibility required to grow rapidly in the market.
Significant deal wins
IV. Reliable Implementations
Intellect went live in 13 financial institutions across the world during this quarter. Some of the significant implementations in Q4 FY21 include:
V. Product Acceptance in Leadership Quadrant
Banks using Intellect’s cutting-edge digital technologies and products have been recognised by renowned global analysts and research firms.
St. James’s Place wins Celent’s Model Wealth Manager with Intellect SEEC’s Intelligent Automation. St. James’s Place Wealth Management (SJP) won the 2020 Celent Model Wealth Manager award in the Emerging Technology category. The award recognised how SJP was able to drastically reduce pain points in their advice quality checking process, reduce the time to review specific elements with high certainty and allow increased volume and efficiency, using Intellect’s Intelligent Automation solution.
HSBC awarded #1 Global Cash Management Winner by EUROMONEY. Euromoney’s Cash Management Survey receives responses from the leading cash managers, treasurers and financial officers worldwide, and is considered the benchmark survey for the global cash management industry. This is the most comprehensive guide to the cash management arena in the market
iGTB powered Vietcombank wins IDC Financial Insights Innovation Award 2021 – Best Bank in Vietnam for Payments and Cash Management. This award was in recognition of Vietcombank’s vision of enhancing their digital proposition in Vietnam for corporates & creating customer stickiness with the ability to quickly respond to customer changes, backed by configurable technology platforms by iGTB for faster responsiveness to the market needs.
MF Utilities, India Wins Aite Group’s 2020 Innovation in Capital Markets Award for Digital Experience. Intellect’s Capital Sigma Fund Distribution solution was implemented by MFUI, enabling them to roll out the MFU system that brought about a digital transformation of the Mutual Fund industry in India and that won them an award.
YES BANK adjudged winner at IDC Financial Insights Innovation Awards 2021 for Intellect powered Credit Origination System. YES BANK won the ‘Best Fintech Partner in Asia’ award by IDC Financial Insights at its annual Financial Insights Innovation Awards 2021 (FIIA). The prestigious recognition was received for the implementation of credit origination system powered by Intellect’s API first microservices based Credit Origination and Management platform.
Financial Results for the Fourth Quarter Ended – March 31, 2021
Additional Information on function wise classification of statement of Profit and Loss of the Group (Consolidated Unaudited / Not Reviewed)
Investor Conference Call
The Board of Directors of Intellect Design Arena Limited met on 10th May, 2021, to take on record the financial results of the company for the Q4 and Annual Results – FY20-21 ended on March 31, 2021
Intellect Design Arena Ltd. will host an Investors Conference Call on 11th May, 2021, where the Senior Management of Intellect will comment on the company’s performance during the Q4 and Annual Results – FY20-21 and respond to questions from participants. The conference call will take place at 17:00 Hrs IST on Tuesday, 11th May, 2021.
Conference Name : Q4 FY21 – Investor earnings call
Date : 11th May, 2021
Time : 05:00 PM to 06:00 PM IST
Virtual Conference Call Link: https://zoom.us/j/93246963219?pwd=Yi9DT1dwaGI0cGhvY2lrcTV0MlUzUT09
Webinar ID: 932 4696 3219
International numbers available: https://zoom.us/u/arT2HaCCF
About Intellect Design Arena Limited
Intellect Design Arena Ltd. has the world’s largest cloud-native, API led microservices-based multi-product FinTech platform for the Global leaders in Banking, Insurance and Capital Markets. It offers a full spectrum of banking and insurance technology products through its four lines of businesses – Global Consumer Banking, Global Transaction Banking (iGTB), Risk, Treasury and Markets, and Insurance. With over 25 years of deep domain expertise, Intellect is the brand that progressive financial institutions rely on for their digital transformation initiatives.
Intellect pioneered Design Thinking to create cutting-edge products and solutions for banking and insurance, with design being the company’s key differentiator in enabling digital transformation. FinTech 8012, the world’s first design center for financial technology, reflects Intellect’s commitment to continuous and impactful innovation, addressing the growing need for digital transformation. Intellect serves over 240 customers through offices in 97 countries and with a diverse workforce of solution architects, domain and technology experts in major global financial hubs around the world. For further information on the organisation and its solutions, please visit www.intellectdesign.com.
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