Intellect Design Arena hits Rs 2,000-cr revenue mark in FY23; stock up 12%

For Q4FY23, total revenue stood at Rs 621 crore, up 24 per cent year-on-year, from Rs 500 crore logged in Q4FY22

Shares of Intellect Design Arena soared 12.17 per cent to Rs 522.5 apiece on the BSE in Friday's intra-day trade, in an otherwise subdued market, after the software and consulting company's total revenues hit Rs 2,000-crore mark for a full financial year in FY23.

While announcing its March quarter results, the management of Intellect Design said on Thursday that it has recorded total revenue of Rs 2,245.97 crore for FY23 as against Rs 1,856.47 crore-revenue seen at the end of FY22. It's net profit, however, fell to Rs 267.3 crore vs Rs 349.08 crore at the end of FY22.

That said, for the quarter under review, total revenue stood at Rs 621 crore, up 24 per cent year-on-year, from Rs 500 crore logged in Q4FY22. 

Segment-wise, Platform revenue for came in at Rs 114 crore as against Rs 117 crore seen in Q4FY22. License revenue, meanwhile, was Rs 113 crore (vs Rs 79 crore YoY); AMC revenue was Rs 106 crore (vs Rs 85 crore); and License linked revenue Rs 333 crore (vs Rs 281 crore YoY).

Intellect Design's gross margin in absolute terms stood at Rs 349 crore in Q4FY23, up from Rs 282 crore last year, while Ebitda was Rs 143 crore. Its profit after tax slipped maeginally to Rs 91 crore from Rs 95 crore in Q4FY22.

The company’s board has recommended a final dividend of Rs 2.50 per share on the face value of Rs 5 each for FY23.

The company had launched eMACH.ai in March 2023, which has been accepted by 12 clients. Among the significant ones, the largest bank in Canada has chosen eMACH.ai enabled Corporate Treasury eXchange (CTX), Virtual Accounts, and Escrow solutions; one of the Philippines' leading universal bank has chosen Intellect’s Retail Loan Origination System, Credit Card Origination system, Canvas, iTurmeric & AR; a leading global speciality insurance and reinsurance carrier in UK has chosen Magic Submission; and IDFC FIRST Bank has signed up for an upgrade of iGTB’s DTB platform, a commercial bank in Zimbabwe has chosen eMACH.ai enabled Intellect Digital Core, and the largest commercial bank in Saudi Arabia has chosen Intellect Debt Management solution in the India-Middle Eastern Region.

In all, eMACH.ai won 42 deals in FY23.

Over the past one month, shares of Intellect Design Arena have rallied nearly 8 per cent on the BSE as against 2.5 per cent gain in the benchmark S&P BSE Sensex.