i-flex net income surges 106%

BS 200 SCORECARD

i-flex Solutions' consolidated net income (Indian GAAP) surged 106 per cent to of Rs 111.2 crore for the quarter ended December 31, 2006, compared with the previous corresponding period.

The company also registered a year-on-year topline growth of 44 per cent for the quarter under review to touch Rs 557.4 crore (Rs 388 crore).

An IT solutions provider to the global financial services industry, the company's net income grew 12 per cent on a quarter-on-quarter basis, while its revenues rose 19 per cent over the last quarter's figures. The EBITDA for the quarter increased 10 per cent sequentially.

Chairman and Managing Director Rajesh Hukku attributed the growth to "a significant change in the mindset of the global financial industry with greater attention to the state of ageing core systems".

The combined force of Oracle/ i-flex is already making a difference in winning several frontline names as customers. Deepak Ghaisas, CEO - India operations and CFO, said, "As the company is expanding its global operations, we are judiciously investing in creating a highly responsive infrastructure to support growth."

The company added 42 customers taking the total number of users serviced to 723. However, the top five customers' contribution to its total revenues dropped from 25 per cent to 22 per cent. i-flex's non-Citi revenues' share increased to 52 per cent from 49 per cent in the last quarter.

The company's new licence fee signings stood at $24.3 million (a little over Rs 100 crore) in the quarter (up from $16.4 in the last quarter), and tank size (product revenue) touched $73.6 million (around Rs 330 crore), up from $67.5 million at the end of last quarter.

Flexcube, the company's flagship product, continued to lead the 'win' momentum, adding 11 new relationships in the quarter and taking its total customer tally to 304.

This quarter, i-flex signed deals with the Peoples Bank, US, and completed the acquisition of Mantas. Reveleus and Mantas continue to gain market share, registering five new wins in the quarter in the US, Asia Pacific and Africa regions.