Intellect Design Arena fell 11.80% to Rs 441.65 after the company's consolidated net profit fell 33.44% to Rs 45.77 crore on 2.54% decrease in net revenue to Rs 527.54 crore in Q2 September 2022 over Q1 June 2022.
On a consolidated basis, the company's net profit fell 42.2% and net revenue rose 16.7% in Q2 September 2022 over Q2 September 2021.Annual Recurring Revenue (ARR) (on annualised basis) stood at Rs 836 crore in Q2 FY23 as against Rs 684 crore in Q2 FY22, growing 22% YoY.
Gross margin rose 5.34% to Rs 276 crore in Q2 FY23 as against Rs 262 crore in Q2 FY22. EBITDA dropped 28.81% to Rs 84 crore in Q2 FY23 as against Rs 118 crore in Q2 FY22. EBITDA excluding ESOP cost is Rs 96 crore, i.e.18% of the revenue.
Platform revenue of Q2 FY23 is Rs 119 crore as against Rs 90 crore in Q2 FY22, growing 33% YoY. License revenue of Q2 FY23 is Rs 68 crore as against Rs 86 crore in Q2 FY22. AMC revenue of Q2 FY23 is Rs 90 crore as against Rs 81 crore in Q2 FY22, rising 10% YoY. License linked revenue (License + Platform + AMC) is Rs 277 crore in Q2FY23 as against Rs 257 crore in Q2 FY22, rising 7% YoY.
Collections for Q2 FY23 are Rs 472 crore as against Rs 347 crore in Q2 FY22. Total Days of Sales Outstanding (DSO) is 128 days - Global business excluding India stood at 115 days in Q2 FY23 and India DSO stood at 164 days. Cash and cash equivalent is Rs 501 crore in Q2 FY23 as against Rs 257 crore in Q2 FY22.
During the quarter, 14 new customers chose Intellect's Digital stack for their Digital transformation, including 9 Customers who have chosen Intellect platforms. Meanwhile, 14 Global Financial institutions transformed their Digital journey on Intellect Platforms and Product stack.
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Arun Jain, chairman and managing director, Intellect Design Arena, said, "In spite of the current market uncertainty driven by high inflation rates and currency volatility, we have delivered a 27% YoY revenue growth for LTMQ2FY23. We also have a visibility of an annual growth of 20% for FY23. We continue to be excited about our journey on cloud-based platforms as we launch new ones and mature the existing ones. This new business in conjunction with our product businesses provides us an opportunity to continue to grow our company. We view each of these platforms as an equivalent of a fintech with a large TAM and an extreme focus on delivering value for its customers by leveraging our superior market leading MACH technologies."
Venkateswarlu Saranu, chief financial officer, Intellect Design Arena, said, "Our platform revenue on LTM basis has grown 62% over last year, while during the same period, our ARR on LTM basis has grown over 35%. Both of these are very important metrics in our business model demonstrating growth on an annualized and sustained basis. During the last couple of quarters, we as an Industry have seen an increase in talent costs and invested in expanding platform business as well, which has impacted our profits. We are seeing some early trends in stabilization of thee talent costs. We continue to be excited about the market opportunity and are positioning our company for growth on a sustained basis."
Intellect Design Arena has the world's largest cloud-native, API-led microservices-based multi-product FinTech platform for global leaders in banking, insurance and capital markets. It offers a full spectrum of banking and insurance technology products through its four lines of businesses - Global Consumer Banking, Global Transaction Banking (iGTB), Risk, Treasury and Markets, and Insurance. With over 25 years of deep domain expertise, Intellect is the brand that progressive financial institutions rely on for their digital transformation initiatives.
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