Intellect Design Q2 net loss swells to Rs 13.8 cr

IT firm Intellect Design Arena today ran up a higher consolidated net loss of Rs 13.83 crore for the September quarter.
The Chennai-based company had posted a net loss of Rs 7.94 crore during the same period of the previous year, Intellect Design Arena said in a statement.
Total revenue for the second quarter to September 2016 grew to Rs 231 crore, from Rs 207 crore registered during the year-ago period, up 11.5 per cent.
In constant currency terms, dollar revenue stood at USD 35.83 million as against USD 31.94 million in the same period last year, a 12 per cent year-on-year growth.

The company recorded 18 digital-led order wins in the reported quarter.
The current funnel (active pursuits) of Intellect is around USD 484 million, of which USD 429 million is accounted for by 250 opportunities, it said.

"It is no coincidence that in this quarter, we have won three large transformation deals including one from Europe... The investments that we have made have given our products a digital edge," Intellect Design Arena Chairman and Managing Director Arun Jain said.
Chief Financial Officer S Swaminathan said that in the current environment of global volatility, the company has delivered growth in this quarter.

"Our portfolio approach to business provides us the assurance of growth. Given the pay-off of a portfolio approach, we would continue to make investments to build deeper moats around our products. Indeed, such a strategy requires more investments than a single product company. We would shortly raise more funds to fuel this growth," he added.
The company's board has approved raising of funds through issue of equity shares to the existing shareholders through a rights issue.
"The terms and conditions of the rights issue including the timing of issue, quantum of offer, issue price, rights entitlement ratio, record date and other matters shall be decided in consultation with the lead manager to the rights issue," it added.

In the said quarter, Europe accounted for 33 per cent of Intellect's revenues, the rest of the world 36 per cent, India 18 per cent and the Americas 13 per cent.