The Hindu Business Line : i-flex net doubles on higher product revenues

A robust growth in its product business helped i-flex Solutions Ltd, a subsidiary of Oracle, to double its net profit for the quarter-ended September 30, 2006, over the corresponding last year.

i-flex reported a net profit of Rs 94 crore on revenues of Rs 499 crore for the September quarter 2006 compared to a net profit of Rs 38.1 crore on revenues of Rs 349.7 crore in the corresponding quarter last year. On a sequential basis, the profit and revenue growth were up 166 per cent and 24 per cent respectively.

For the first six months of current fiscal, i-flex made a net profit of Rs 128 crore (Rs 53.4 crore) on revenues of Rs 902.5 crore (Rs 623.7 crore).

Product revenues

The second quarter product revenues grew 29 per cent sequentially, while on a year-on-year basis they were up 50 per cent. i-flex said its product tank size at the end of the quarter grew to $67.5 million. i-flex also said that the Reveleus momentum continued with four wins in the quarter.

"Our profitability has increased considerably, whenever the product business has shown good growth," said Mr Deepak Ghaisas, CEO Indian operations and CFO. "Profitability in services business also improved by 200 basis points," he said.

i-flex acquired 17 new customers during the quarter that included 14 in product business, as Flexcube had a major win in Japan and four wins in Europe, including a multi-country project. i-flex also registered a gross addition of 1,012 employees (excluding KPO business) to take its overall headcount to over 7,700.

Non-Citi biz

The services business of i-flex saw a 17 per cent sequential revenue growth during the quarter and accounted for 49 per cent of revenues. The company signed up five new customers as it commenced significant engagements with non-Citi customers in Europe and US.

The company's non-Citi business grew 24 per cent sequentially, while the Citi business registered a 10 per cent growth. Non-Citi business accounts for 49 per cent of the company's services revenues, Mr Ghaisas said.

i-flex completed the acquisition of Mantas, a leading provider of anti-money laundering (AML) and compliance software and services on October 4 and expects to consolidate its revenues from the December quarter. i-flex expects its KPO subsidiary - Equinox to break even in the next two to three quarters. Equinox posted a revenue of Rs 10.2 crore during the quarter.

Following the results, i-flex shares ended almost flat at Rs 1,511 on Friday after touching an intra-day high of Rs 1,539. Oracle's open offer for further acquisition of 20 per cent shares in i-flex at Rs 1475 a share would begin on November 6 and close on November 25. If the open offer is subscribed fully, Oracle's stake in i-flex would go up to 75 per cent.

More Stories on : Financial Performance | Software | Outlook

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Roaming within SAARC may become cheaper

Airtel to launch mall service soon

Aircel to get licences for 7 new circles

34 pc rise in Satyam Q2 net

Sonata Soft net rises 65%

i-flex net doubles on higher product revenues

NIIT Tech net zooms 78%

Dax unveils new switch

World Ahead Programme: Intel on track

Satyam adds 35 clients, hires 4,000 in Q2

3i Infotech to buy UK co for Rs 230 cr

Sierra Atlantic buys UK firm Iterion

InterGlobe Tech launches centre near Chennai

Nvidia unveils debugging tool