Polaris Software Lab Ltd has reported a 26 per cent increase in net profit to Rs 58 crore for the fourth quarter ended March 31, 2011 as against Rs 46 crore for the corresponding quarter last year. Revenue increased by 25 per cent to Rs 438 crore (Rs 351 crore).
For the year ended March 31, 2011 the Chennai-based software company reported a 30 per cent increase in net profit to Rs 202 crore (Rs 153 crore) on revenue of Rs 1,587 crore (Rs 1,354 crore), an increase of 17 per cent.
The company's board of directors recommended a final dividend of 90 per cent (Rs 4.50 per equity share of Rs 5 each) on equity capital of the company for fiscal 2011.
Sales soar
Mr Arun Jain, Chairman and CEO, Polaris, said the company's sales funnel has grown to $610 million during the year from $300 million three years ago. This reflects positioning Polaris as a ‘Global Financial Technology” company.
Polaris said it delivered ‘strong and stable' results led by product wins, multiple large engagements with leading tier-1 global banks and financial institutions and further consolidated its market presence in key business geographies. For instance, revenue from its product Intellect crossed Rs 100 crore, and 16 new Intellect wins were recorded in the quarter, the company said in a statement.
The Americas contributed 44 per cent of the quarterly revenue; Europe 24 per cent, IMEA 14 per cent and Asia Pacific 18 per cent.
Intellect Business
Polaris signed eight transformational deals in the quarter across verticals and geographies. The big wins included a leading global bank which picked Polaris' Intellect Liquidity for its cash and trade management solutions for the APAC region. One of the top 10 global banks chose its funds control solution, while another picked Intellect Receivables Management to enhance their corporate banking services.
Insurance business also saw three marquee deals in the quarter, from the largest players in Europe. Intellect Claims went live with a reputed Life Insurance provider in India and simultaneously, Intellect Claims 2.0 went live in both Life and P&C segments at one of Australia's leading Insurance providers.
Two new facilities opened at Chennai will soon be ready to have a combined seating capacity of around 3,000, the company said.
Polaris has launched a Mobile Banking Centre of Excellence, as part of its Technology Delivery and R&D Centre in China to address the needs of the Mobile Customer and enhance Polaris' capabilities in the Mobile Banking space.
Revenue guidance
Mr Jain discussing with analysts in a conference call said the company is expecting revenue of around $425 million for 2011-12, a 20 per cent growth over the previous year. This will include the $11 million revenue from the acquisition of the US-based IdenTrust.
Polaris plans to add 2,000-2,500 people (net) in 2011-12 and will spend around Rs 80 crore during the year on capex, which includes 12-13 per cent wage increase for its employees, he said
On the BSE, the share price of Polaris closed at Rs 194.90, a decline of Rs 13.60 over the previous day's closing price.