IRIS adds 1799 SaaS customers, PAT up 483%

Buyoed by the addition of 1799 new customers for its SAAS offerings, global Regtech, IRIS Business Services Limited (BSE: 540735) reported its second successive year of profitable growth inspite of contraction of revenues in its non SAAS business.

In a filing with the BSE of its annual financial results, the company reported a 10% growth in total revenues in FY 2021 to ₹ 56.59 crore up from ₹ 51.57 crore in FY 2020.

The modest growth in revenue notwithstanding, Profit After Tax registered an impressive 483% growth, from ₹ 46 lakhs in FY 2020 to ₹ 2.72 cr in FY 2021. Equally, EBITDA has shown a considerable improvement to ₹ 10.12 crore, from ₹ 8.26 crore in the previous 12 months, a 23% increase. "We can see that operating leverage is kicking in," says company Founder & CFO, K Balachandran. The diluted EPS has gone up to ₹1.44 per share in FY 21 from ₹ 0.25 per share in the year preceding.

The total number of customers served by the company with its SaaS offerings has gone up to 6095. "Our business mix will always include SAAS and non SAAS revenues though our focus will be to keep increasing recurring revenues which presently stands at about 71% of total revenues, said Company Founder & CEO, S Swaminathan.

During the year under review, the company has also repaid a term loan on its books. In other signs of improved financial health of the company, Cash flow from operations have registered a significant increase to ₹1124 lakh in FY 21 from ₹180 lakh in FY 20. Cash and Cash equivalents has registered an appreciable jump from ₹169 lakh in FY 20 to ₹845 lakh in FY 21.

The company has also effected a substantial improvement in its trade receivables position which has decreased from ₹1748 lakh in FY 20 to ₹1307 lakh in FY 21.

"While it is unfortunate that the pandemic has held us back from giving effect to our growth plans, we are optimistic about what the future holds for IRIS," Swaminathan says.

Shares of IRIS Business Services Ltd was last trading in BSE at Rs.69.75 as compared to the previous close of Rs. 70.35. The total number of shares traded during the day was 60000 in over 15 trades.

The stock hit an intraday high of Rs. 70.2 and intraday low of 68. The net turnover during the day was Rs. 4177800.

Source : Equity Bulls

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