3i Infotech reports revenues of Rs333.2cr in H1 FY22 and aims to achieve Rs850cr revenue by next year

The company reported revenues of Rs 333.2 crore in H1 FY22, strategically spread across its’ top clients and the others to de-risk its business.

November 17, 2021 3:41 IST | India Infoline News Service
3i Infotech Limited, a global Information Technology company, committed to accelerating business transformation has recorded a robust performance at the bourses, after being relisted on the stock exchanges on October 22, 2021.

FINANCIAL HIGHLIGHTS (Q2FY22 consolidated results| H1 highlights) 
  • Net Sales at Rs. 177.1 crore versus Rs 152.1 crore; up 16%; attributed to the addition of new clients and introduction on new service offerings in specific domains like BFSI, telecom, media and entertainment, healthcare, etc
  • Q2FY22 revenues grew by 8.4% compared to Q1FY22
  • The company reported revenues of Rs 333.2 crore in H1 FY22, strategically spread across its’ top clients and the others to de-risk its business. In the same period, the company won 8 new logos 
  • With a revenue mix change and a margin mix change strategy the company is driving GM of 20+% as in H1 FY21-22 and aims to grow it north of 30 to 35% in the coming quarters
  • QoQ Run business has grown by 8% and Grow business has also witnessed double digit growth
  • Gross profit margins reported at 11.5% in Q2FY22
  • Finance cost has reduced substantially to Rs 2.2 crore in Q2FY22 from Rs 9.9 crore in Q2FY21; down 77%
The company, in its new avatar 3i 2.0 has entered new business segments: Cloud First, Digital Business Services, Digital Transformation Consulting and NextGen Business Services; while on the operations side, it has created new marketing, revenue assurance and strategy process.  

Commenting on the performance of Q2FY2022, Mr. Thompson Gnanam, Managing Director & Global CEO, 3i Infotech Limited said “FY22 is truly a year of transformation for 3i Infotech across all fronts, whether it’s corporate governance, business model, strategy, and financial standing. As a company we will continue to build products, platform services leveraging the power of 5G cognitive in edge computing, cognitive AI, ML, data science, analytics and Blockchain. We are heavily invested into cloud and our exclusive partnership with Oracle will go a long way in bringing in our best-of-class products to the market. We plan to make cloud edge ready and reduce cloud cost by 20% and provide a secure cloud technology for our customers. We also plan to develop micro data centers.”

Giving a more simplified results on a normalized EBIDTA and providing a clear perspective behind the high costs incurred in Q2 and it being negative, Mr. Thompson further added, “the focus for the new 3i Infotech is on strengthening the foundation, with the product business now carved out and the services business being the mainstay. One of the key interventions, also in line with the new Governance, Risk and Compliance (GRC) policies, is to bring in all the best practices, and build an organization based on transparency, trust and integrity. The company has done proactive provisioning for doubtful and slow-moving debts, performance bonus etc. in this quarter. There has been an effort to completely clean-up legacy carry- forward issues and insulate the RUN business this quarter. And if you look at it - it is a balanced scorecard, with our normalized EBIDTA being positive in H1 FY22.” 

The new mantra adopted by 3i Infotech is hinged around - Innovate, Incubate and Invent, wherein ‘Entrepreneur in Residence’ will be a key program for entrepreneurs to join hands with 3i Infotech and invent new value creating intellectual property. The company will look to incubate and accelerate startups as white-labeled technology to fuel new services lines and build new IPs. The company’s objective would be to focus on higher revenue with systematic change in revenue mix focusing aggressively on top line and higher revenue generating service offering. 

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