Intellect Design Arena Ltd, a specialist in applying true Digital Technologies and a global leader in Financial Technology across Banking and Insurance, announced its fourth quarter results for FY 2019-20 today.
I. Calibrated Predictable Growth
Q4 FY20 – Financial Highlights
Revenue:
License, AMC and SaaS Revenue:
Gross Margin, EBITDA and Net Profit
iGTB registered INR 163.4 Cr Revenue
Digital led wins and implementations
Product Launch
Revenue:
License, AMC and SaaS Revenue:
Gross Margin, EBITDA and Net Profit
iGTB registered INR 163.4 Cr Revenue
Digital led wins and implementations
Product Launch
FY20 – Financial Highlights
Revenue:
License, AMC and SaaS Revenue:
iGTB registered $ 76.76 Mn Revenue
EBITDA and Net Profit:
Gross Margin:
SG&A Costs
Digital led wins:
Product Recognition: Highly Acclaimed Product Suite
Product launches during the Year:
II. Management Commentary
Arun Jain, Chairman and Managing Director, Intellect Design Arena Limited said, “2019-20 year was a year of change. Change in adoption of Cloud technology, Change in moving from large Capital intensive technology transformation to Subscription based Project funding model and Change in moving from robotic process automation to Hyper intelligent Automation using Data. During the year, Intellect has invested an amount of over 40 Cr (150 man years of efforts) of additional R&D money to move all the products to API/Microservices based architecture using Low coding platforms. These changes put additional pressure on expected revenues and profitability during the year but these investments have made Intellect products API/Microservices based and Cloud ready. The interest in Intellect products has gone up substantially in Europe and Americas.”
Venkateswarlu Saranu, Chief Financial Officer, Intellect Design Arena Limited said, “During the year, we applied Design Thinking to align cost by industrializing the products and processes. We are able to bring down implementation cycle time by 40% and defect rate by 60%. This has resulted in significant reduction in pre EBITDA cost during the year. ’’
III. Board Announcement
Board has approved inducting Abhay Gupte as Additional Director on the Board. He will be an independent director
Abhay Gupte, Managing Director and CEO, Manipal Technologies Limited (MTL), is responsible for its businesses & subsidiaries in India, Germany, Kenya and Nigeria. He has over 37 years of work-experience with large global and Indian organisations.
Prior to joining MTL, he was MD & CEO of Indian operations of EDS, a global IT organization between 1998 and 2008. He was also MD – Global Operations of UK based product company Logica between 2008 and 2013. He has also held senior leadership positions at American Express Bank and GE Capital.
Abhay is alumnus of IIT New Delhi. He is a guest speaker at various Engineering and Management Institutes, associations and public forums, etc. He is a mentor to the executive leadership of large global companies.
IV. Digital Deals
With our path-breaking Digital 360 approach, Intellect has been able to address all aspects of our customers’ digital requirements. Q4 FY20 recorded 7 Digital led wins including 3 large digital transformation deal wins.
Large Digital Transformation deal wins
Intellect has won a landmark, multi-million-dollar deal with one of the top 10 banks. The Bank has been using iGTB’s Liquidity Management Solution (LMS) for over 10 years and has now chosen to upgrade its client liquidity management capabilities to iGTB’s latest LMS and the front end Contextual Banking Experience (CBX).
One of the largest custodian banks has chosen iGTB’s world-leading cash and liquidity functionality built on cloud-native, fully open source, API microservices technology. The front-to-back LMS with self- service CBX will propel the bank’s liquidity management capabilities and account services to best in class. iGTB’s world-leading Liquidity Management Solution, incorporating the latest Contextual Banking Experience, offers the bank and its clients a way to optimise liquidity, transforming the services on offer to corporate clients.
Intellect further expands its footprint in the Kingdom of Saudi Arabia, partnering with one of the top 5 banks. The bank has chosen iGTB’s Digital Transaction Banking (DTB) solution. The bank has selected DTB to power its digital transformation initiatives to strengthen its corporate offering and help attract more customers. The solution will help the bank become more competitive, streamline internal processes and, in turn, generate additional revenue streams.
Significant deal wins
V. Reliable Implementations
Intellect went live in 5 financial institutions across the world during this quarter. Some of the significant implementations in Q4 FY20 include:
VI. Product Acceptance in Leadership Quadrant
Intellect’s cutting-edge digital technologies and products have been recognized by renowned global analysts and research firms.
Intellect Design has been named as a LEADER in IDC MarketScape report – Worldwide Trade Finance Systems 2020 Vendor Assessment.
The report assessed vendors on their depth and breadth of functionality, level of integration and forward-looking technology strategy around Cloud and APIs. Fully integrated with the award-winning omni-channel CBX application, iGTB uniquely combines trade and supply chain finance on a single platform providing a seamless customer experience front to back.
Intellect’s CBX Retail – Digital Onboarding Platform wins XCelent Functionality Award for “Breadth of Functionality” in Celent Report – Retail Banking Customer Acquisition Platforms: ABCD Vendor View
Intellect has been recognised by Celent’s ABCD Vendor View for “Breadth of Functionality” in its report. In a relatively short timeframe, Intellect has built a large global customer base of institutions of all sizes. It has built its platform to be highly componentized and driven by flexibility in the way it implements.
Intellect powered Abu Dhabi Islamic Bank’s ‘ADIB Direct’ featured in Aite report as one of the Digital-Only Propositions launched by incumbent firms in the MENA region.
iGTB powered Abu Dhabi Islamic Bank (ADIB) has been featured in the Aite report as one of the Digital-Only Propositions launched by incumbent firms in the MENA region. ADIB received this award for demonstrating innovation through technology to offer a differentiated user experience that aligns with the needs of today’s business owners and corporate treasurers.
Financial Results for the Fourth Quarter Ended – March 31, 2020
Additional Information on function wise classification of statement of Profit and Loss of the Group (Consolidated Unaudited / Not Reviewed)
| Particulars | QUARTER ENDED | YEAR ENDED | ||||
|
March 31, 2020 (Q4 FY 20) |
December 31, 2019 (Q3 FY20) |
March 31, 2019 (Q4 FY 19) |
March 31, 2020 (FY20) |
March 31, 2019 (FY 19) |
||
| INCOME | ||||||
| Income from software product license and related services | 35,964.28 | 32,033.03 | 39,758.20 | 1,35,086.74 | 1,45,873.25 | |
| EXPENDITURE | ||||||
| Software development expenses | 16,690.00 | 17,110.89 | 19,033.85 | 69,866.63 | 73,717.60 | |
| Gross Margin | 19,274.28 | 14,922.14 | 20,724.36 | 65,220.11 | 72,155.65 | |
| Gross Margin % | 53.59% | 46.58% | 52.13% | 48.28% | 49.46% | |
| Selling and marketing & General and administrative expenses | 9,050.00 | 10,699.47 | 11,716.31 | 42,132.35 | 44,968.45 | |
| Research & Engineering expenses | 2,357.52 | 3,145.97 | 3,192.44 | 12,188.17 | 10,039.81 | |
| ESOP Cost | 490.00 | 524.00 | 383.00 | 1,698.00 | 558.00 | |
| Provision for Debts and Write offs | 984.11 | 195.00 | 219.48 | 1,719.11 | 1,739.17 | |
| Total Expenditure | 29,571.63 | 31,675.33 | 34,545.08 | 1,27,604.29 | 1,31,023.02 | |
| EBITDA | 6,392.65 | 357.70 | 5,213.13 | 7,482.48 | 14,850.22 | |
| Depreciation | (1,074.50) | (974.04) | (563.43) | (3,968.89) | (2,291.13) | |
| Amortisation | (837.73) | (733.89) | (583.81) | (2,926.84) | (1,864.58) | |
| Hedge Impact | (161.81) | (83.97) | (196.00) | (398.33) | (916.31) | |
| Finance Charges | (382.42) | (482.52) | (270.71) | (1,736.69) | (1,144.25) | |
| Profits / (Loss) before other income / minority interest | 3,936.20 | (1,916.72) | 3,599.17 | (1,548.27) | 8,633.96 | |
| Other Income (including Treasury) | 298.36 | 338.18 | 566.43 | 2,944.44 | 6,270.56 | |
| Reinstatement of Receivables / Liabilities | (621.99) | 504.37 | (305.06) | 255.64 | (1,180.31) | |
| Minority Interest/ Share of profit/(loss ) of Associate Companies | 615.47 | 219.87 | 611.03 | 455.66 | 305.03 | |
| Profit / (Loss) before tax | 4,228.03 | (854.30) | 4,471.66 | 2,107.46 | 14,029.24 | |
| Provision for taxation | (128.98) | (283.85) | (173.83) | (509.00) | (894.70) | |
| Profit / (Loss) after tax | 4,099.05 | (1,138.15) | 4,297.83 | 1,598.46 | 13,134.54 | |
About Intellect Design Arena Limited
Intellect Design Arena Ltd, a specialist in applying true digital technologies, is the world’s first full spectrum Banking and Insurance technology products company, across Global Consumer Banking, Central 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 digital transformation initiatives.
Intellect pioneered Design Thinking for 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 to address the growing need for digital transformation. Intellect serves over 240 customers through offices in 91 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 organization and its solutions, please visit www.intellectdesign.com