Intellect still losing money in FY 2015-16, but revenue rises
Arun Jain, Intellect
Intellect Design Arena is still not making a profit and has reported a loss before tax of INR 258.9 million ($3.9 million) for the full year (FY) 2015-16.
This is an improvement on last year, when it reported a loss before tax of INR 812.3 million ($12.2 million) for the period ending 31 March 2015.
Despite the loss making, there was a 33% year-on-year rise in revenue for FY 2015-16 (period ending 31 March 2016). Revenue stood at INR 8.1 billion ($123.8 million) compared to INR 6.1 billion ($91.7 million) in the same period last year.
Arun Jain, chairman and MD at Intellect, makes no mention of the continuing losses but says the firm has “grown its footprint” in Asia, India, Middle East, Africa and Europe. He notes that growth in America was “subdued” last year.
Intellect says it was awarded 50 “digital led” wins in the full year including 11 wins in this quarter.
One win from 2015 was Kuala Lumpur-based Hong Leong Bank Berhad. It selected the Intellect Global Transaction Banking platform as the basis for a digital transformation of its wholesale banking services.
However, there have been some farewells. Federal Bank in India is looking to replace its legacy treasury system, supplied by Intellect. The bank recently issued a request for proposal (RFP) for procurement and migration of treasury management.
S Swaminathan, CFO at Intellect, also makes no comment on the lack of profit and says the company has “increased” its investments in marketing, pre sales and “additional leadership” during the quarter. This includes Arun Shekhar Aran, CEO of Nucsoft Solutions, who was appointed as “additional director” on the board and will be an “independent director” at Intellect.
Intellect claims it “continues to deliver over 87% implementations ahead of schedule” in the full year.
It calls them “delightful and reliable” implementations.
