i-flex net drops 6% YoY to Rs 87cr

Mumbai-based i- flex solutions today reported a 6.5% decline in consolidated net income at Rs 87.4 crore for the quarter ended September 30, 2007 when compared with Rs 93.5 crore in Q2FY07.

The company's revenue (Indian GAAP) increased to Rs 575.8 crore for the quarter ended September 30, 2007 from Rs 499.2 crore in the corresponding period last year.

On a quarter-on-quarter basis, top line increased 12% from Rs 513 crore in Q1FY08, and net income jumped 138% from Rs 36.7 crore in the first quarter of the current fiscal.

N R K Raman, managing director and CEO, i-flex solutions, said: " We have booked strong licence revenues this quarter on execution of several successful deployment projects, and this is reflected in our quarterly numbers. We recently announced enhanced offerings in our universal banking, lending, and investor services suite of products to help our customers meet the demands of an increasingly complex and competitive financial services environment."

CFO Makarand Padalkar said that effective hedging strategies have enabled the company to contain the impact of rupee appreciation. "We have made significant investments in expanding our reach, infrastructure and staff strength to meet the requirements of business growth. We have completed the establishment of our subsidiary, i-flex solutions s.a., in Greece giving us local capability to serve our customers in the Balkans region," Padalkar added.

Highlights of the Quarter:

* New licence fee signings of $22 million during the quarter; Tank size at the end of the quarter grows to $80 mllion;

* Added 13 new customers across products and services in the quarter;

* Staff strength at the end of September 2007 was 10,778 with a net addition of 1,245 people during the quarter.

*Flexcube wins several strategic deals in ASPAC and Europe.