Polaris posts Revenues of Rs. 584 Cr, EBITDA of Rs. 101 Cr in Q1 FY '13-14

Chennai, India - 30 July 2013

Delivers Q-o-Q growth in midst of companywide restructuring

Polaris Financial Technology Ltd, a leader in products, solutions and services that enable unprecedented operational productivity for the global Financial Services industry, today announced its first quarter results for FY 2013-14.

Key Performance Metrics for the quarter ended 30th June, 2013:

  • Quarter revenues grew by 5% Q-o-Q to Rs. 584 crore, from Rs 555 Cr.
  • EBITDA grew by 9% Q-o-Q to Rs. 101 crore from Rs. 93 Crore
  • Profit After Tax (PAT) for the quarter stood at Rs. 43 crore
  • Cash and cash equivalents stood at Rs. 571 Crore at the end of the quarter, moving up from Rs. 329 Cr in the same quarter last year
  • DSO days improved significantly and stood at 59 days from 75 days in the same quarter last year, indicating strong collection efficiencies
  • FT Sourcing (Services) revenues stood at Rs. 450.32 Cr, contributing 77% of overall revenues. Three new FT Sourcing wins were recorded in this quarter. Gross margin for FT Sourcing (Services) stood at 31%.
  • FT Intellect (Products) revenues stood at Rs. 133.49 Cr, contributing 23% of the overall revenues. Eight new Intellect wins were recorded in this quarter. Gross margin for FT Intellect (Products) stood at 52%.

*AS30 adjustments are done to neutralise the Forex impact of hedging on the top line. Polaris had an adverse impact of Rs. 15.85 Cr in Q1

Management Statement

Arun Jain, Founder, Chairman & CEO, Polaris Financial Technology Limited said, “As announced, we are in the midst of a company wide restructuring to a new organisation design. It has been a challenge to manage the changing paradigm, along with our growth agenda, investment agenda and profitability agenda. The team has still been able to drive some growth in top line and EBITDA margins, while managing structural change smoothly. This reflects Polaris Management’s professionalism and the strong execution engine.”

Nat Narayanasamy, Group CFO, Polaris Financial Technology Limited said, “Our relentless focus on operational efficiencies has resulted in the DSO days coming down to 59, compared to 75 days in the same quarter last year. Our cash position is at Rs. 571 Cr, up from Rs. 329 Cr in the same quarter last year. This represents an excellent war chest for fueling our inorganic growth strategy.”

Business Highlights for Quarter ended 30th June, 2013

  1. Polaris announced its new organisation design signalling greater empowerment, agility and the potential to unlock enterprise value, while transitioning to an industry imperative of outcome-based solutions. The company's new structure divides its businesses into separate Services and Products divisions, led by independent CEO’s. The restructuring exercise is across the organisation in terms of structure, people, processes and systems and represents radical change to orient the company around the customer. The company is a third of the way through the process and expects to complete it in the next Quarter.
  2. The company had launched FT 8012, the world’s first Design Center, dedicated to Financial Technology in March 2013. In the last quarter, delegations from 12 customer organisations have visited the center to explore possibilities of collaborative research towards driving high operational productivity. The center is receiving recognition as the ideal place to conduct workshops for the design of custom made solutions that are transformational for the Financial Services industry.
  3. Polaris expanded its presence to Columbus by launching its new office in Ohio. The new office on Columbus’ Polaris Parkway will strengthen existing client relationships and will help demonstrate Polaris' expertise and leadership in the BFSI sector.

FT Sourcing (Services)

Polaris’ FT Sourcing Quarter revenues were distributed across all key business geographies with the Americas contributing 53%, Europe 21%, India 6% and Rest of the World 20%. The quarter saw three significant deals in the FT Sourcing space. They are:

  • One of the world’s leading Financial & Trading Institution based out of North America has awarded Polaris the conceptualisation, design and development of one of their strategic IT initiatives around Data Warehousing and Global Portals
  • One of America's oldest commercial banks signed up Polaris' services to define the next generation architecture and roadmap for its multi-channel account opening platform. The new platform would support it's retail and business banking clients and enable seamless account opening and on-boarding across online banking, mobile, contact centres and tablets.
  • A leading boutique testing company in UK with clients across the Banking, Financial Services and Manufacturing sector chose Polaris' services to implement its test strategy

​FT Intellect (Products)

Polaris’ Intellect Quarter revenues were distributed across all key geographies with the Americas contributing 17%, Europe 30%, India 13% and Rest of the World 40%. The quarter saw eight wins for Polaris’ Intellect products and very successful implementations, testimony to Intellect’s superior architecture and rich functionality.

  • Nationwide Financial, one of the leading providers of Life Insurance in the US, chose Polaris’ Intellect Claims solution, for its flexibility in configuring claims processes and setting up role based work stations, thereby providing superior customer experience
  • Intellect Funds Control was implemented in a major global financial services provider, headquartered in the UK and engaged in corporate, investment, wealth, personal banking and credit cards, driving high degree of operational efficiencies.
  • National Bank of Abu Dhabi (NBAD), one of the largest financial institutions in the Middle-East with a rich international network stretching across five continents, chose Polaris to implement a separate instance of its Intellect CBX for the management of its pre-paid card system in order to better manage the bank's payroll processing accounts.The bank also upgraded the existing Intellect CBX to the latest version 3.0 with multi-country enablement, to serve as a single platform for all its transactions.
  • UCO Bank, one of the oldest and leading commercial banks in India, with over $30 Billion in Assets and over 2500 Branches, chose Polaris' Intellect Treasury Solution. Polaris’ solution will cater to the bank’s treasury operations covering Domestic and Forex treasury functions across front, middle and back office with a single database & balance sheet.
  • Ahli Bank, a leading Qatar based global financial institution, chose Polaris' Intellect CBX as a single platform for their retail, corporate and mobile banking systems.The bank provides a range of tailored products and services to its customers and corporates in the Qatari market.
  • Sonali Bank Limited, the largest state owned commercial bank in Bangladesh went live with Polaris’ state-of-the-art Intellect Core Banking Solution (CBS), which offered the bank superior core banking functionality and rich user experience. This implementation will amplify the footprint of Polaris in the Bangladesh market as the only local Financial Technology leader.
  • The Andhra Pradesh State Co-operative Bank Limited (APCOB), a scheduled state Cooperative Bank, committed to agricultural and rural development through the Cooperatives, went live with Polaris’ Intellect Core Banking Solution (CBS) in all its 22 affiliated District Central Cooperative Banks (DCCBs) and 616 branches spread across the state. The bank chose Polaris to improve its operational efficiency in rural credit dispensation and also provide the competitive edge essential for future business growth.

Awards and Recognitions

Polaris has consistently been recognized and awarded by analysts and other industry influencers. Some of the recognitions received in the last quarter are:

  • Polaris won three prestigious Technology Implementation Awards at the Asian Banker Summit 2013 held in Jakarta, Indonesia. They were:
    • The ‘Best Central Bank Technology Project’ award for its implementation at the Reserve Bank of India (RBI) for providing the bank superior functional coverage and future ready architecture with the capability of handling 100 million transactions per day
    • The ‘Best Cross Border Core Banking Project’ award for its implementation at Saigon Hanoi Bank (SHB), for expanding the bank’s operations cross border into the two neighboring countries of Cambodia and Laos
    • The ‘Best Lending Platform Project’ award for its implementation at Abu Dhabi Commercial Bank (ADCB), that enabled the bank to enhance product offerings and customer servicing levels, and simplify operations of the retail lending portfolio
  • Forrester's Report featured Polaris' Intellect as one among the 'Successful Vendors of Choice' in UK, US, India & Philippines and one of the top five Global Vendors in the most active countries of the World
  • Polaris' Intellect SEEC was featured among Global Insurance vendors and recognised as a Global Portal provider with a broader set of insurance specific capabilities and robust functionality in TowerGroup/CEB's report
  • TowerGroup/CEB's report featured Polaris FT among leading Global Retail Banking Outsourcing Technology Providers who will play a key role in deploying technology initiatives to its banking clients partners
  • Polaris' Intellect Treasury was rated among the global best in TiMS -Treasury Information Management Systems in an Aite Group Report. Aite in its report stated: "“Polaris Intellect Treasury primarily targets banks' treasuries and presents different strategies for different segments and is focused on pushing the system across all segments.”
  • Polaris' Intellect FABX was rated among Best Global Four and classified in the elite category of providers with 'Extraordinary Capabilities' providing mobile applications by MyPrivateBanking's report. The report stated: "Overall FABX for iPad is one of the best and most user-friendly solutions in our vendor analysis."

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