Intellect Design Arena loss narrrows to Rs 11.3 crore in Q3

Company says fourth quarter will be a break even quarter

Intellect Design Arena Limited has reported a loss of Rs 11.31 crore during the quarter ended December 31, 2015 as against a loss of Rs 15.59 crore in the same quarter a year ago. The company's revenue stood at Rs 194 crore as against Rs 160 crore.

Arun Jain, chairman and managing director, Intellect Design Arena commented that while the company grown on a cumulative basis, the last quarter saw two deals which were to have closed being deferred to the next quarter. "However we are on track on the annual growth guidance as of today."

At the End of second quarter the company gave a revenue guidance of 26-30 per cent for the entire fiscal.

Margins for the first three quarters were at Rs 309 crore as against Rs 227 crore in the same period last year.

Investments in R&D stood at Rs 97 crore on a YTD basis. The company has launched four new products so far this year including two more new products this quarter. Intellect proudly unveiled IGTB release 16, including Apple Watch Support & Artificial Intelligence.

S Swaminathan, CFO of the company said that company's gross margin and the cost of S&M, R&D and G&A have been in line with company's estimates.

"With the expected revenue in fourth quarter the company is looking forward to a break even quarter."

He added, currently around 44-46 per cent of the revenue comes from advances market, including Europe and Americas (including Canada)

The company informed Exchange that the Board of Directors of the Company at its meeting held on January 25, 2016 have taken on record the divestment of SFL Properties Private Limited will take more time and the transaction is expected to be completed over a period of next 12 months in view of prevailing market conditions.

This company has around 20 acres of land at Ambattur, near Chennai.