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Intellect Design Arena posts net profit at Rs3491 million in FY22

6 May 2022 , 01:00 PM

Intellect Design Arena Ltd, a cloud-native, future-ready, multi-product FinTech company for the world’s leading Banking and Insurance clients, announced its fourth-quarter results for FY 2021-22 today.

I. Intellect’s Products and Platforms drive accelerated Digital transformation

Intellect’s suite of 12 composable and contextual Products and 5 platforms have won 6 new Customers who have chosen Intellect’s MACH compliant – Microservices based, API led, Cloud ready, with Headless option – Digital stack for their Digital transformation. Of these, 3 progressive Customers have chosen Intellect platforms. Cumulatively for the year (FY22), this stacks up to an impressive 35 Wins of which 13 are Platform wins.
- RBI reaffirmed its faith in Intellect’s cloud-native Quantum Central Banking Solution by giving the mandate to us to power the Central Bank’s next stage of digital transformation and established us as a big player in the tech space.
- Reposing its faith in Intellect’s composable cloud-native microservices payments architecture, a leading private sector multinational bank in India has signed a transformative deal to implement Intellect’s iGTB Cash Cloud platform.
- Intellect lost a multiyear, multi million dollar Digital Transformational deal for Intellect Digital Core with a Russian Bank in Germany, owing to the ongoing crisis in Ukraine. Intellect was awarded the deal, however contracting could not proceed owing to the outbreak of the conflict.
In this Quarter, 6 Global Financial institutions have transformed their Digital journey on Intellect Product stack. Intellect could achieve this transformation in complex applications 40% faster than other players in the market because of its 300+ fine grained Packaged Business Components (PBCs) 900+ APIs and low code, accelerated and predictable implementation technology – iTurmeric that replaces coding with configuration. Cumulatively for the year (FY22), Intellect completed Digital transformation for 35 customers.

Intellect Global Transaction Banking partners with Microsoft to establish Corporate Banking transformation on Cloud. The collaboration will see iGTB adopt Microsoft as its preferred cloud platform to remove traditional barriers of banking technology adoption, thereby helping banks go-to-market 3 to 4 times faster with Liquidity, Cash Management, Payments, Trade Finance & Supply Chain Finance cloud offerings to their corporate clients. This collaboration is set to drive sustained banking digitalisation, help banks transform their corporate banking business models, modernise their cloud technology stacks, and consume “Banking-As-A-Service” out-of-a-box.

II. Launched New Platform in Q4FY22

Intellect launched iColumbus.ai, named after the pioneer whose discoveries eventually opened up the world to truly global international trade. iColumbus.ai is on a mission to disrupt the way that trade business is conducted today, helping banks differentiate themselves through digitalisation, enhance operational resilience and champion sustainability.

iColumbus.ai is an Artificial Intelligence powerhouse platform for trade finance, enabling the extraction, validation, remediation and enrichment of machine-readable data whilst radically reducing the time, cost and risk traditionally associated with manual compliance checks. The native AI engine, working in combination with advanced machine learning, natural language processing and computer vision techniques can contextualise and process 500 different document types in 87% less time with complete accuracy

III. Calibrated Predictable Growth

Q4 FY22 – Financial Highlights

Revenue:

Total Revenue 4 FY22 stood at Rs 5094 Mn as against Rs 3976 Mn in Q4FY21 – grew 28% YoY.
In $ terms, Q4 FY22 Revenue stood at $ 67.70 Mn as against $54.53 Mn in Q4FY21- grew 24% YoY.

License, AMC and SaaS Revenue:

Saas/Cloud revenue of Q4 FY22 is Rs 1193 Mn as against Rs 649 Mn in Q4 FY21 – grew 84% YoY.
Q4 FY22 License Revenue is Rs 808 Mn as against Rs 856 Mn in Q4 FY21- drop by 6 % YoY.
Q4 FY22 AMC Revenue is Rs 866 Mn as against Rs 758 Mn in Q4 FY21 – grew 14%YoY.
Annualised Recurring Revenues (ARR) touched INR 8240 mn – $109 mn on an annual basis.
License linked revenue (License + SaaS/Subscription + AMC) is at 56% of total revenues as against 57% of total revenues in Q4 FY21.

Gross Margin and EBITDA

Gross Margin is Rs 2912 Mn at 57.2% of revenue in Q4 FY22 as against Rs 2259 Mn in Q4 FY21. Gross margin remained flat against revenue growth of 28%.
EBITDA is Rs 1206 Mn at 23.7% of revenue in Q4 FY22 as against INR 1014 Mn, 25.5% of revenues in Q4 FY21.
EBITDA excluding ESOP cost is Rs 1298 Mn i.e. 25% of the revenue.

Profit Before Tax and Net Profit

Profit Before Tax stood 1194 Mn in Q4 FY22 as against 886 Mn in Q4 FY21 – grew by 35%YoY.
Net Profit is Rs 953 Mn in Q4 FY22 as against INR 806 Mn in Q4 FY21 – grew by 18% YoY.

EPS

Annualised EPS for Q4 FY22 is at 28.32

Collections and Net DSO

Collections for Q4 FY22 is INR 4746 Mn; up by Rs 969 Mn, as against INR 3777 Mn in Q4 FY21 .
Total Days of Sales Outstanding (DSO) is 115 days – Global business excluding India stood at 95 days in Q4 FY 22 and India DSO stood at 153 days.
Investment in Product Development (Capitalised) is Rs 297 Mn, as against Rs 284 Mn in Q4FY21.

Cash Position

Zero Debt profitable global FinTech Company with cash of Rs 5580 Mn at the end of Q4 FY22 as against INR 2107 Mn in Q4FY21
Cash and Cash Equivalent is Rs 5589 Mn as against Rs 2617 Mn in Q4 FY21.
Effective Operating Cash Flow is Rs 1246 Mn.

FY22 – Financial Highlights

Revenue:

Total Revenue for FY22 stood at Rs 18782 Mn as against Rs 14975 Mn in FY21- grew 25% YoY.
In $ terms, FY22 Revenue stood at $ 252 Mn as against $ 202 Mn in FY21 – grew 25% YoY.