i-flex net drops 5% to Rs 132 cr

CORPORATE SCORECARD

i-flex, an IT solutions provider to the financial services industry, has posted 5 per cent drop in its net profit for the fourth quarter ended March 31, 2007 to Rs 132.4 crore compared with the corresponding quarter of 2005-06. Revenues, however, increased 28 per cent to Rs 601 crore.

According to the company, the dip in net profit was because of a high proportion of licensee fee in the corresponding quarter of FY06.

"The pace of growth during fourth quarter of FY07 was also good and there has been some deferred revenues of close to $20 million which will materialise in the next two to three quarters," a company spokesperson said. For the full year, the net profit increased by 57 per cent to Rs 372.3 crore and revenues went up by 39 per cent to Rs 2,061 crore on a year-on-year basis.

Rajesh Hukku, CMD, said, "In the last financial year, we have seen a significant increase in our traction with top tier customers in the developed economies. i-flex enjoys a healthy sales pipeline as we continue to meet the growing requirements of the global financial services industry through sustained investments." According to the company, the tank size (pipeline) stands at $82.5 million - highest level reached till date - registering 12 per cent quarter on quarter and 27 per cent year on year increase, as a result of strong license fee signings.

During the year, the company's product revenue grew by 47 per cent year on year to reach Rs 1,121 crore.

The services business for the full year grew by 29 per cent year on year. i-flex added 30 new customers in all lines of business during the fourth quarter, taking the total number of customers to 753.

The company added 522 employees in the quarter, taking the total strength of the group for software and services business to 8,034 and the knowledge process outsourcing business headcount to 1,034.