Intellect Design Arena posts net profit of Rs 3.73 crore

Firm has posted Rs 5 cr loss in year-ago quarter; eyes annual revenue of Rs 990-1,020 cr in current fiscal

Intellect Design Arena Ltd has posted a net profit of Rs 3.73 crore during the quarter ended June 30, 2016, as compared to a net loss of Rs 5.15 crore during the same period of previous fiscal year.

The company, which focuses on offering digital technologies to banking and insurance sectors, registered a net income from operations of Rs 130.23 crore in the quarter ended June 30, 2016, as against the Rs 120.93 crore during the same quarter of previous year, an increase of 7.7 per cent.

Arun Jain, chairman and managing director, Intellect Design Arena Ltd said that while the company has won several deals and launched new products in the quarter, apart from ramping up strategic leadership, a few deals with UK-based banks have been deferred due to Brexit.

"With a health pipeline, I am confident that we will achieve our set annual revenue guidance in the range of Rs 990 crore to Rs 1020 crore for this financial year," he said. The company has posted a revenue of Rs 810.65 crore in FY 2015-16, a 33 per cent growth compared to Rs 608.75 crore registered during the previous fiscal year.

S Swaminathan, chief financial officer, said that the company would have preferred the first quarter to start on a slightly higher note.

"This quarter is not a representative quarter for performance," he said, adding that the company understand various levers of costs management for a product business and its cost has now stablisied and is predictable.

The company has added 14 senior executives from the industry in the last six months, increasing the leadership team headcount to 110.