This is a remarkable time for everyone in your company. Intellect has just finishedFY16-17. During the year Intellect has established its roots as an independent brand withtrusted products impeccable deliveries and wider reach of sales network. In April 2017your company was recognized as #2 in Digital Banking & Channels #1 in Retail BankingSystems and #1 in Payment Systems amongst global players by the IBS Intelligence AnnualSales League Table 2017.
This growth has not been accidental; it has stemmed from your company's reading ofheadwinds in the banking and financial services sector in recent times. The challenge hascome mainly from the explosion of digital technology from rapidly-evolving regulatoryframeworks and the increasing complexity of doing business across borders.
BELIEF - The Foundation that Shaped Us
BELIEF is the foundation of the Intellect story; the powerful framework that propels usin our exciting journey of digital domination in the world of banking and financialtechnology. In life it is belief that creates actual fact. It is no different atIntellect. For us Belief is the coming together of our most powerful values; it is thesummation of our philosophy. B is all about the brand E is the all-important endcustomer. L stands for leadership which is our proud legacy across our lines of business.I represent the intellectual product and E is for execution excellence. Finally F takesinto account the financial robustness and integrity of the Intellect brand.
BELIEF is the coming together of the 6 essential catalysts of growth and excellence westrive for. It is our talisman; the confluence that drives our mission to transformbanking and financial technology.
At Intellect our reason for existence is clear - we seek to foster disruption thatmakes banking smarter easy and more intuitive. Design thinking and an unwavering focus ondigital is our roadmap to get there. BELIEF serves us as the invaluable beacon in thisexciting journey forward.
Let me take you through Finance Capital first. Your company revenue has grown from 609Crs in FY 15 to 914 Crores in FY 17 registering a CAGR of 22.51%.
Software license revenue has grown from 85 Crores in FY 15 to 156 Crores in FY 17registering a CAGR of 35.47% and AMC revenue has grown from 108 Crores in FY 15 to 170Crores in FY 17 registering a CAGR of 24.89%. Our annual gross margins stood at 49.3%.
The Company achieved positive EBITDA and generated 15.64 Cr of EBITDA in Q4 FY 17compared to negative 18 crores in Q3 FY 17. The company also became PAT positivegenerating net profit of 10.6 crores during Q4 FY 17.
During Q4 FY 17 we have been able to manage our costs better. We have rationalized someleakages in our cost structures. On the 3rd element of the Finance capital i.e.Collections Intellect has collected more than 40 million dollars in a single quarter onthe back of deliveries resulting in 19 days reduction in DSO - from 180 to 161 days.
Let me speak about the first alphabet of BELIEF Model ie. Brand capital. Your companywas ranked as #2 in Digital Banking & Channels #1 in Retail Banking Systems and #1in Payment Systems by global research firm IBS Intelligence in their Annual Sales LeagueTable 2017.
Our thought leadership in Brand is driven by iGTB Oxford School of Transaction Bankingand 8012 FinTech Design Center.
End Customer Capital
Let me take the 2nd element of BELIEF model i.e. the End Customer. Intellect'sstrength is coming from the balanced portfolio of Advanced and Emerging Markets customerbase. Including the order wins recorded in Q4 FY 17 Intellect's customer base stands at209. Referenceability of our rich and diversified customer base is the key for drivingproduct business closer to Crossing the Chasm' stage.
It's time for me to speak about Leadership which is 3rd element of our BELIEF model.Our 4 LOBs have very comprehensive leadership encompassing strategic thinking innovativeproduct manufacturing impeccable service deliveries and persuasive customer engagement.Our leadership team comprises of institution building passionate leaders with pastpedigree and new leaders added during the last 2 years from competition. These leaders areveterans from global organizations like JPMC and competitors like Misys Fundtech andTemenos. They understand the industry and chose to participate in the Intellect journey.
At Intellect Design Arena we have embarked on being Agenda setters in the FinancialTechnology product space globally because we see a big opportunity with the advent ofcutting edge technologies in the Digital space. We believe that this can be leveraged toredefine the way Financial Technology will be delivered. We are all aware of the fact thatharnessing the power of digital technology requires a new way of thinking (which I call'Design Thinking') a completely new way of architecting and then connecting it with atotally new Business Experience Platform.
We at Intellect have built 8 Digital Technology Platforms like Digital Core DigitalTransaction Banking Digital Lending Digital Insurance Digital Wealth Digital MarketsDigital Treasury and Digital Payments driving business growth for over 200 customersacross 24 countries.
Devil is in the detail' ie. Execution the fifth element of BELIEF model whichdrives the Finance Capital . During the year 44 customers have gone live'. We areproud of the fact that Intellect's technology has been adopted by the Reserve Bank ofIndia Life Insurance Corporation of India Citigroup Technology St. James's Place andMashreq Bank among others. With the number of customers gone live the AMC revenues arealso growing in a sustained manner.
Ahead of the curve by Design
It is only natural that we have successfully maintained our position in the BFSI spaceover the past two decades. The most vivid illustration is our focus on Digital whichdates back to 2006.
It was way back in 2006 that we spotted the shift and understood that Digital wouldcause a tectonic shift. Now 10 years hence here we are. However spotting the trend isonly part of the picture. Intellect has invested steadily in digital and product R&Dthus creating a comprehensive product suite in financial technology.
We built the 8012 FinTech Design Center spread over 30000 sqft in 2013 to harness thepower of Design Thinking to aid us in the building of our Digital Business ExperiencePlatforms. At our Design Center customers can experience their digital vision in realtime and work with specialists on the customer experience and operational excellencedrivers sharing pain points getting under the hood to better appreciate gaps in currentsystems identify change opportunities and establish priorities for progressivemodernisation.
Steady on course In conclusion it has been a satisfying year in our journey. I wouldlike to thank all the shareholders and analysts who trusted Intellect's vision. I alsotake this opportunity to thank each Intellect associate who has contributed in thisjourney of transformation by applying Design Thinking in building digital products forfinancial industry worldwide.
Your company was ranked as #2 in Digital Banking & Channels #1 in RetailBanking Systems and #1 in Payment Systems by global research firm IBS Intelligence intheir Annual Sales League Table 2017.
|Arun Jain |
|Chairman & |
|Managing Director |