3i Infotech reports annual results for year ended March 2010
23 April 2010 - 3i Infotech, a global provider of IT solutions and one of India’s largest software product companies*, today announced its operating results for the fourth quarter and financial year ended March 31, 2010.
FINANCIAL HIGHLIGHTS
Consolidated results for the year ended March 31, 2010
• Revenue for the year is Rs.2,468.75 crores (USD 517.07) representing a YoY growth of 7.1%
• Profit before interest, depreciation and tax (PBIDT) grew by 11% to Rs. 503.14 crores (USD 105.38 Mn) over the previous year
• Profit after tax and before exceptional items and impact of discontinuing operations is at Rs. 265.95 crores (USD 55.70 Mn), as against Rs. 266.42 crores (USD 58.17 Mn) for the previous year
• Earnings per share (EPS) before exceptional items is at Rs. 17.21 as compared to Rs. 19.02 in the previous year. The decline is mainly due to the additional shares issued pursuant to the QIP done by the Company in September 2009.
Consolidated results for the quarter ended March 31, 2010
• Revenue for the quarter is Rs. 632.60 crores (USD 137.41 Mn), a growth of 3.6% from the corresponding quarter of the previous year. On a sequential basis, growth has been 5.1%.
• Profit before interest, depreciation & tax (PBIDT) grew by 4.3 % to Rs. 128.17 crores (USD 27.84 Mn) as compared to the corresponding quarter of the previous year
• Profit after tax and before exceptional items and impact of discontinuing operations is at Rs.84.28 crores (USD 18.31 Mn), as against Rs.66.65 crores (USD 13.19 Mn) in the corresponding quarter of the previous year
• Earnings per share (EPS) before exceptional items is at Rs. 4.77 as compared to Rs. 4.80 in the previous year
Commenting on the results, Mr. V. Srinivasan, Managing Director & CEO, 3i Infotech Limited, said, “The year under review has been a challenging one for us and the IT Industry. It involved keeping focus on markets and concentrating on bringing in greater operational efficiencies across businesses. With this we have been able to record growth in revenues even in difficult times. We expect the year ahead to be better and are moving ahead with a definite sense of optimism.”
Discontinued operations
Commencing from March 2007, the Company had entered into agreements with some State Governments towards setting up and operating Citizen Service Centers across those states for providing certain government services as well as non-government retail services to consumers. The Company has decided to exit from the Master Service Agreements (MSA) of some of the State Governments by paying a compensation of Rs. 10.92 crores under these contracts and further decided to exit totally from this line of business owing to prevailing business environment. Accordingly, the assets attributed to this business are being carried as 'Assets held for Disposal', at their net realizable values. The loss thereof of Rs. 260.46 crores (net of tax of Rs. 70.74 crores) has been written off in the Profit and Loss account and has been disclosed as 'Impact of Discontinuing Operations'.
Dividend
The Board has recommended a dividend of 15% on the face value of the equity shares.
Resignation of Director
Mr. Chandrashekar, a Director has stepped down from the Board of the Company due to personal reasons. He has made significant contribution to the strategy of the Company by advising the Company on strategic direction to be taken from time to time.
Outlook
For the coming year ending March 31, 2011, the Company estimates a growth in revenue of 11% to 14% and a net margin at 10% to 10.5%.
About 3i Infotech
3i Infotech (www.3i-infotech.com) is one of India’s leading IT companies and among the top 3 Indian Software Products Companies.* The Company provides software products, IT services (Managed IT Services, Application Software Development & Maintenance, Payment Services, Business Intelligence, Document Imaging & Digitization, Operations Outsourcing and IT Consulting) and BPO services for the BFS, Insurance, Manufacturing / Auto, Healthcare / Life Sciences and Retail & CPG Industry. . The Company services customers in over 50 countries across 5 continents.
The Company's quality certifications include SEI CMMI Level 5 for Software business, ISO 9001:2000 for BPO, ISO/IEC 27001:2005 for Data Center Operations and ISO/IEC 20000-1:2005 for Data Center Management Services.
* Source: Dataquest, August 2009
