Intellect turns corner in profit quest
The loss problems for India’s Intellect Design Arena have abated as it has revealed a profit after tax of INR 106 million ($1.65 million) in its Q4 results.
As Banking Technology reported last year, Intellect’s lack of profit worsened as it disclosed a loss after tax of INR 138 million ($2 million) for the quarter ended 30 September 2016. For the quarter ended 30 June 2016, it had a loss after tax of INR 55.2 million ($826,690).
Although the full year results, for the period ended 31 December 2016, show a loss of INR 155.6 million ($2.4 million); for the quarter ended 31 March 2017, there has been an improvement.
In the previous instances when there was a lack of profit, Arun Jain, Intellect’s chairman and MD, ignored it and commented on something else. This time, Jain thanks “all the shareholders and analysts who trusted Intellect’s vision”.
S Swaminathan, CFO at Intellect, who also made no comment on the lack of profit in previous reports, now adds that the “efforts made in the last couple of quarters have resulted in driving revenue growth, accelerating collections and managing cost better” and so has “contributed in delivering positive” EBITDA.
In terms of revenue for the quarter, this stood at INR 2.5 billion ($38.8 million) as against INR 2.26 billion ($35.1 million) – a growth of 11% quarter on quarter.
Intellect cites some implementations as part of its success in the Q4 results. These include the Central Bank of Lesotho going live on Quantum Central Banking Solution (QCBS); and Egypt-based El Taamir Mortgage Finance Company that went live on Intellect’s lending suite.