Conference Call with Intellect Design Arena Management and Analysts on Q3FY22 Performance and Outlook. Listen to the full earnings transcript.
IT Software products company Intellect Design Arena declares Q3FY22 result: Intellect Q3 FY22 revenue registers 33% YoY growth; SaaS revenue registers 113% growth EBITDA registered 37% YoY growth. PAT registers 25% growth YoY growth Zero Debt Profitable Global Fintech Company with cash of INR 4314 Mn at the end of Q3 FY22 Annualised Recurring Revenues (ARR) touched INR 6860 mn on an annual basis Highest ever quarterly collections. Collections for Q3FY22 stood at INR 4852 Mn YTD FY22 Revenue stood at INR 13688 Mn registering 24% YoY growth Revenue: Total Revenue for Q3 FY22 stood at INR 5083 Mn - grew 33% YoY In $ terms, Q3 FY22 Revenue stood at $ 67.80 Mn - grew 31% YoY License, AMC and SaaS Revenue: Saas/Cloud revenue of Q3 FY22 is INR 890 Mn as against INR 418 Mn in Q3FY21 - grew 113% YoY Q3 FY22 License Revenue is INR 1122 Mn as against INR 910 Mn in Q3FY21- grew 23% YoY Q3 FY22 AMC Revenue is INR 825 Mn as against INR 744 Mn in Q3FY21 - grew 11%YoY Annualised Recurring Revenues (ARR) touched INR 6860 mn - $92 mn on an annual basis. License linked revenue (License + SaaS/Subscription + AMC) is at 56% of total revenues as against 54% of total revenues in Q3 FY21. Gross Margin, EBITDA and Net Profit Gross Margin is INR 2980 Mn at 59% of revenue in Q3 FY 22 as against INR 2140 Mn in Q3FY21 - grew from 56% in Q3 FY21. Gross margins grew 39% against revenue growth of 33% EBITDA is INR 1330 Mn at 26% of revenue in Q3 FY22 as against INR 974 Mn - 25.5% of revenues in Q3 FY21. EBITDA grew 37% against revenue growth of 33% EBITDA excluding ESOP cost is INR 1415 Mn i.e. 28% of the revenue.?? Profit Before Tax and Net Profit Profit Before Tax stood 1146 Mn against 864 Mn in Q3 FY21 - grew by 33%YoY Net Profit is INR 1009 Mn as against INR 804 Mn in Q3 FY21 - grew by 25% YoY Collections and Net DSO Collections for Q3 FY22 is INR 4852 Mn; up by INR 1370 Mn, as against INR 3483 Mn in Q3 FY21 Total Days of Sales Outstanding (DSO) is 129 days - Global business excluding India stood at 105 days in Q3 FY 22 and India DSO stood at 217 days Investment in Product Development (Capitalised) is INR 282 Mn, as against INR 283 Mn in Q3 FY21 Cash Position Zero Debt profitable global FinTech Company with cash of INR 4314 Mn at the end of Q3 FY22 Cash and Cash Equivalent is INR 4330 Mn as against INR 1837 Mn in Q3 FY21 Effective Operating Cash Flow is INR 1695 Mn Arun Jain, Chairman and Managing Director, Intellect Design Arena Limited said, “I am delighted to see our strategy of Composable and Contextual technologies translating into financial results. As per the plan announced during the first quarter results, we are gearing the company towards a $300 Million run rate and have made investments in the last 2 quarters. YTD EBITDA has grown by 38% over the last 9 months while retaining calibrated investments for the growth agenda” Venkateswarlu Saranu, Chief Financial Officer, Intellect Design Arena Limited said, “This quarter Business generated net cash of INR 1695 Million on the back of good project deliveries. We are able to deliver YTD growth of 24% exceeding our forecast of high teens announced in Q1 results.” Result PDF
Financial Highlights Intellect Q2 FY22 revenue registers 22% YoY growth; SaaS revenue registers 156% growth EBITDA registered 33% YoY growth. PAT registers 50% growth in the first 6 months Zero Debt Fintech Company with cash of INR 2574 Mn at the end of Q2 FY22 Revenue: Total Revenue for Q2FY22 stood at INR 452.1 Mn - grew 22% YoY In $ terms, Q2 FY22 Revenue stood at $ 61.03 Mn - grew 22% YoY License, AMC and SaaS Revenue: Q2 FY22 License Revenue is INR 869 Mn Q2 FY22 AMC Revenue is INR 814 Mn Saas/Cloud revenue of Q2FY22 is INR 879 Mn - grew 156% YoY Annualised Recurring Revenues (ARR) touched INR 6774 mn on an annual basis. Gross Margin, EBITDA and Net Profit Gross Margin is INR 2618 Mn in Q2 FY22, 58% of revenue grew from 56% in Q2 FY21 EBITDA is INR 1182 Mn at 26% of revenue in Q2 FY22 as against INR 892 Mn in Q2 FY21 EBITDA excluding ESOP cost is INR 1290 mn i.e. 28.5% of the revenue. Profit Before Tax stood 901 Mn against 662 Mn in Q2 FY21. FX Revaluation movement on 30th Sep resulted in net loss of 58 Mn against a gain of 46 Mn in the prior quarter resulting in a differential of 114 Mn impact on PBT. Net Profit is INR 792 Mn as against INR 592 Mn in Q2 FY21. Q2 FY22 recorded 9 Digital-led wins including 6 platform deals in Q2FY22 Intellect went live in 26 financial institutions with 10 New Digital transformations across the world during this quarter Collections and Net DSO Collections for Q2 FY22 is INR 3471 Mn; up by INR 129 Mn, as against INR 3343 Mn in Q2 FY21 The Net Days of Sales Outstanding (DSO) is 122 days for Global business excluding India as against 116 days in Q2 FY21 India DSO stood at 214 days as against 192 days in Q2 FY21 Investment in Product Development (Capitalised) is INR 290 Mn, as against INR 284 Mn in Q2 FY21 Cash Position Zero Debt with cash of INR 2574 Mn at the end of Q2 FY22 Cash and Cash Equivalent is INR 2604 Mn as against INR 1654 Mn in Q2 FY21 Effective Operating Cash Flow is INR 380 Mn. Revenue: Total Revenue for H1FY22 stood at INR 8605 Mn - grew 20% YoY In $ terms, H1 FY22 Revenue stood at $ 116.41 Mn - grew 22% YoY License, AMC and SaaS Revenue: H1 FY22 License Revenue is INR 1662 Mn H1 FY22 AMC Revenue is INR 1607 Mn Cloud revenue of H1FY22 is INR 1656 Mn - grew 127% YoY Gross Margin, EBITDA and Net Profit Gross Margin is INR 4914 Mn in H1 FY22, 57% of revenue grew from 55% in H1 FY21 EBITDA is INR 2184 Mn at 25% of revenue in H1 FY22 as against INR 1571 Mn in H1 FY21. Profit Before Tax and PAT Profit Before Tax is 1778 Mn against 1133 Mn grew by 57% YOY. Net Profit is INR 1530 Mn as against INR 1018 Mn in H1 FY21 grew 50% YoY. Arun Jain, Chairman and Managing Director, Intellect Design Arena Limited said, “Intellect's technologies have driven calibrated and profitable growth over the last 8 quarters. As committed during the Intellect Technology day in March 2021, we launched two Platforms on Cloud this quarter - iKredit360 and iGTB Cloud - CashPower ‘22. Both platforms have helped Intellect win 6 platform deals in this quarter. This is the beginning of Intellect's transition from a Product company to a Fintech Platform.” Venkateswarlu Saranu, Chief Financial Officer, Intellect Design Arena Limited said, “Our achieving 22 % growth in two successive quarters with EBITDA growing by 33% is quite satisfying. We are now a zero debt company, another landmark for a Fintech platform. We are confident of growing over 20% for the current year.” Result PDF