Stock Report

i-flex net income increases 144% YoY; Net income stands at Rs. 94 crore

Posted On : 2006-10-20 01:53:15( TIMEZONE : IST )

Revenue for the quarter at Rs. 499 crores (up 43% YoY)

Highlights of the Quarter (as per US GAAP)

Revenue for the quarter posts 23% QoQ and 39% YoY to Rs 501 crore; Net income increases 94% QoQ to Rs. 80 crore.

Acquired 17 new customers in the quarter based on strong market momentum

Registered gross addition of 1012 employees (excluding KPO business) - highest ever in a quarter

On October 4th, completed the acquisition of Mantas®, a leading provider of antimoney laundering (AML) and compliance software and services Solutions Portfolio

Products Business

Revenues post a strong growth of 29% QoQ and 50% YoY
Tank size at end of the quarter increases to $67.5 million
FLEXCUBE scores wins across US, Europe and Asia Pacific; including a major win in Japan and four wins in Europe of which one for a multi country project.
Strategy to penetrate Indian cooperative banking sector registers a major success with multiple banks signing up.
Product business wins 14 new name customers.
Reveleus momentum continues with 4 wins in the quarter; Reveleus Operational Risk product selected by a US headquartered global multinational bank for a multi-country deployment
Launched the "i-flex Process Framework for Banking (iPFB)", a tool for transforming banking operations. iPFB is a repository of processes that draws on i-flex developed best practices.

Services & KPO Business

Services business wins 5 new customers; significant engagements commenced with non-CITI customers in Europe and US
Revenue registers 17% QoQ growth; Non-Citi business grows 24% QoQ; while CITI business registers 10% growth QoQ
i-flex wins two major integrated KPO and ITO projects with a large US based premier provider of global investment management services and a large US based mortgage processing company
S. Hariharan, Senior Vice-President, Infrastructure and Support Services, recognized as one of the top 100 CIO’s in the country
Electronics and Software Export Promotion Council awarded i-flex the "Electronic Export Award" for significant export in 2003-2004 and 2004-2005.

Mumbai, October 20, 2006: The Board of Directors of i-flex solutions limited, a leading provider of IT solutions to the global financial services industry, has approved the results for the quarter ended September, 2006.

Speaking on the occasion, Rajesh Hukku, Chairman & Managing Director said, "We are delighted with the robust performance across all our business lines. The sales momentum in the market is healthy and we continue to progress well towards our vision of becoming the leading end-to-end solution provider for the financial services industry."

R. Ravisankar, CEO, International Operations and Technology added, "Our globally diversified business model and balanced portfolio of solutions continues to deliver strong growth. Our acquisition of Mantas Inc. and launching of the i-flex Profess Framework for banking, are part of our initiatives to further diversify our portfolio and lead the market."

Commenting on the financials Deepak Ghaisas, CEO, India operations & CFO said, "We continue to aggressively invest in expanding our capability and infrastructure to create a foundation for future growth. These investments are delivering results; the recent success in winning two major integrated ITO and KPO projects is a result of our investments in the past."

Consolidated Indian GAAP:

i-flex posted a top line growth of 43% with revenue for the quarter ended September 30, 2006 at Rs. 499 crore as compared to Rs. 350 crore for the corresponding quarter during the previous year. The net income for the quarter stood at Rs. 94 crore representing 144% growth compared to the corresponding quarter in the previous year. The revenue for the half year ended September 30, 2006 stood at Rs. 902 crore, up 45% as compared to the previous year. The net income for the same period stood at Rs.129 crore.