Info-tech

Intellect Design posts ₹17-crore loss in second quarter

Our Bureau Chennai | Updated on November 04, 2019 Published on November 04, 2019

City-based Intellect Design Arena Ltd, a specialist in applying digital technologies, reported a net loss of ₹17 crore for the second quarter ended September 30, 2019, as against a net profit of ₹31 crore for the corresponding quarter last year as licence revenue from a large deal got deferred. Revenue declined by nearly 15 per cent to ₹327 crore (₹383 crore).

A large deal that we were counting on for this quarter’s licence revenue got deferred, Arun Jain, Chairman and Managing Director, Intellect Design, told BusinessLine, on reasons for the loss. However, the company signed three cloud deals during the quarter. From an order book perspective, these are multi-million dollar deals, but none of these deals could be accounted for in the current quarter, he added.

Cloud applications

With cloud-ready applications, the company is planning to expand its customer segment from Tier-1 and Tier-2 financial institutions to Tier-3 and Tier-4 institutions through ‘disruptive’ pricing. “In the next six quarters of Intellect 2.0, we will be accelerating the monetisation strategy with independent monetisation team in place,” he said.

Venkateswarlu Saranu, CFO, Intellect Design said, in a press release said, “while top line growth in this quarter has not been to our expectations, our efficiency drive has led to cost reduction by ₹10 crore over a year ago, which will also ease the pressure on our cash flows. We hope to sustain these initiatives going forward.”

On the Bombay Stock Exchange, the company’s stock price closed at ₹171.10, down by ₹7.

Published on November 04, 2019
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