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Intellect Design Arena slips after Q3 net loss

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Capital Market
Last Updated : Feb 17 2020 | 1:31 PM IST

Intellect Design Arena reported a consolidated net loss of Rs 11.38 crore in Q3 December 2019 as against a net profit of Rs 13.38 crore in Q3 December 2018.

The scrip slipped 2.98% to Rs 139.80. The stock has fallen 18.05% in nine sessions from its recent closing high of Rs 170.60 recorded on 4 February 2020.

Net sales declined 14.7% to Rs 319.49 crore in Q3 December 2019 over Q3 December 2018. Pre-tax loss in the December quarter stood at Rs 7.84 crore as compared a pre-tax profit of Rs 15.50 crore in the same period last year.

License revenue stood at Rs 49 crore (down 44.34%), AMC revenue was at Rs 63 crore (up 7.2% YoY) and SAAS revenue came in at Rs 33 crore (up 50% YoY) in quarter ended on 31 December 2019.

Gross margin fell to Rs 149.22 crore in Q3 FY20, representing 46.6% of revenues, from Rs 183.23 crore in Q3 FY19 when it represented 48.5% of revenues. The company reported 91.48% fall in EBITDA to Rs 3.6 crore in Q3 December 2019 as compared to Rs 41.91 crore reported in Q3 December 2018.

Arun Jain, chairman and managing director, Intellect Design Arena said, While current quarter revenues have been impacted by documentation challenges, we have moved up assured revenue streams of AMC and SaaS. SaaS revenues, growing by 50%, now contribute to 10% of revenues against 5% year ago. Our platform investments are in line with the industry shift and our products are ready for the new pipeline of opportunities. We will stay focused, working to being the principal technology partner for our customers, forge partnerships towards increasing monetization and continue to drive efficiencies.

Intellect Design Arena is the world's first full spectrum banking and insurance technology products company, across global consumer banking, global transaction banking (iGTB), risk, treasury and markets and insurance.

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First Published: Feb 17 2020 | 12:41 PM IST

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