Profit after Tax grows 38% to Rs. 60 Cr
Polaris Financial Technology Limited, a leader in products, solutions and services that enable unprecedented operational productivity for the global Financial Services industry, today announced its second quarter results for FY 2013 -14.
Key Performance Metrics
For the quarter ended 30th September, 2013:
• Quarter revenues grew by 13% Q-o-Q to Rs. 643 crore, from Rs. 567 Crore and 7% Y-o-Y to Rs. 643 crore from Rs. 599 crore
• EBITDA grew by 24% Q-o-Q to Rs. 124 crore from Rs. 100 crore
• Profit After Tax (PAT) grew by 38 % Q-o-Q to Rs. 60 crore from Rs. 43 crore and 8% Y-o-Y to Rs. 60 crore from Rs. 55 crore
• EPS for the Quarter was Rs. 6.01 (Rs. 24.04 on an annualised basis). Excl. Forex impact the EPS would have stood at Rs. 9.36
• Cash and cash equivalents stood at Rs. 518 crore at the end of the quarter Management Statement
Arun Jain, Founder, Chairman & Group CEO, Polaris Financial Technology Limited said, “This was the first complete Quarter after we announced our restructuring in June 2013. I must congratulate the Management Teams of our four business units for being able to restructure themselves around the customer quickly and efficiently. I am also happy to see that, despite so many changes, this Quarter has shown green shoots of growth after a few flat quarters. We are in the right direction and poised to deliver greater value to the Financial Services industry with products and services designed for unprecedented operational productivity.”
Nat Narayanasamy, Group CFO, Polaris Financial Technology Limited said, “We have successfully completed the divestment of IdenTrust with a positive impact of about Rs. 14 Crore on a consolidated basis. We continue to keep our cash focus and have maintained a cash position of over Rs. 500 Crore.”
FT Sourcing (Services)
Key Performance Metrics:
• FT Sourcing revenues grew 12% Q-o-Q to Rs. 504.25 crore, 78% of consolidated revenues
• Gross margin for FT Sourcing (Services) stood at 33%
• EBITDA grew by 25% Q-o-Q at Rs. 101 crore. EBITDA margin stood at 20%.
• Operating Profit grew by 32% Q-o-Q at Rs. 86 crore
• Four new FT Sourcing wins were recorded in this quarter
Polaris’ FT Sourcing Quarter revenues were distributed across all key business geographies with the Americas contributing 54%, Europe 21%, India 6% and Rest of the World 19%.
FT Intellect (Products)
Key Performance Metrics:
• FT Intellect revenues grew 19% Q-o-Q to Rs.139 crore, 22% of consolidated revenues
• Gross margin for FT Intellect (Products) stood at 54%
• EBITDA grew by 18% Q-o-Q at Rs. 23 crore. EBITDA margin stood at 17%.
• Operating Loss stood at Rs. 2 Crore after investments of Rs. 10 crore in S&M
• FT Intellect is in investment mode to drive growth and market share
• Nine new FT Intellect wins were recorded in this quarter
Polaris’ Intellect Quarter revenues were distributed across all key geographies with the Americas contributing 21%, Europe 29%, India 10% and Rest of the World 40%.
Business Highlights for Quarter ended 30th September, 2013
1. Polaris launched the following products and technologies at Sibos 2013, the world’s premier annual banking and financial conference, held this year in Dubai:
• iGTB – the world's first complete Global Transaction Banking Platform
• Payments Hub - Real-time payments solution that minimizes operational risk and improves the Straight Through Processing rate to over 90%
• Canvas Technology - Omni-Channel solution that enables role-based efficiencies for Financial Institutions
2. Polaris unveiled the ‘Financial Forensics Platform’ (FFP) to address the Money Laundering and Fraud issues faced by financial institutions, at the FT Design Series in London
FT Sourcing (Services)
The quarter saw 4 significant deals in the FT Sourcing space:
• A leading global provider of technology-driven-solutions to banks, broker-dealers, mutual funds, and corporations, chose Polaris’ application development and maintainence services
• A technology leader of self-service solutions in banking services, hardware and software and a leading provider of ATM software to a number of Tier 1 and Tier 2 banks across the globe, chose Polaris as a partner in testing their releases, for new product development and client implementations, leveraging Polaris' specialized ATM testing frameworks and tools
• One of the largest ICT user organizations in the Queensland government, which delivers world-class education and training services for people at every stage of their personal and professional development, chose Polaris as its preferred testing services vendor for various service categories
• A leading bank in Qatar providing a range of financial solutions to its individual and corporate customers, chose Polaris' services for implementation of third party products
FT Intellect (Products)
The quarter saw 9 wins for Polaris’ Intellect products which is a testimony to Intellect’s superior architecture and rich functionality.
• One of the top ten global banks, offering solutions to clients in more than 100 countries with one of the most comprehensive global product platforms available, chose Polaris’ Liquidity, CBX & Deposit solution as part of their global expansion. The bank chose Polaris’ solution because of its cross border multi-currency capabilities.
• One of the foremost and leading banks in Canada, providing a broad range of retail banking, wealth management and investment banking products and solutions, chose Polaris’ iBDM (Intellect Banking Data Model) to integrate customer data across all the Capital Markets systems
• A leading Central Bank chose Polaris' Intellect Treasury and Intellect Market Risk to cover the bank's Front, Mid & Back Office operations
• A prominent Indian state-owned commercial bank chose Polaris’ iGTB (Integrated Global Transaction Banking) comprising Cash Management, Channel Finance solutions & CBX as a single platform to fuel its entire cash management banking business
• One of the largest private banks in Indonesia chose Polaris’ iGTB (Integrated Global Transaction Banking) to provide next generation transaction banking capability. The bank chose iGTB for the comprehensive coverage of transaction banking products and services, providing a convergence of cash and trade.
• A leading commercial bank in Bangladesh offering a wide gamut of banking services, chose Polaris’ Intellect Core Banking Solution (CBS) as their preferred core banking solution for centralization and automation of their business processes
• The newest Islamic bank in Qatar, licensed and regulated by the Qatar Central Bank, providing a full range of Shari’ah compliant banking services chose Polaris' Intellect Collect system for delinquency management. The system will provide the bank a single platform to manage delinquent accounts across all their group companies from a single instance.
• A leading bank in the UAE with an established reputation for excellence in the areas of corporate and commercial banking, trade finance, treasury and comprehensive personal banking, chose Polaris’ Intellect Origination solution to meet their current & future technology needs. As a future proof solution it will allow easy integration with their current systems and other third party applications in future.
• One of the largest banks in Kuwait with an asset base of USD 50 Billion and an effective market dominance in the commercial banking market, chose Polaris’ Intellect Collect system to meet the collection management requirements of the bank
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:
• Gartner positioned Polaris as a Leader for the fourth time in a row, in their report ‘Magic Quadrant for International Retail Core Banking’ for 2013
• Gartner recognized Polaris’ iGTB as one amongst the Global Top 7 Vendors with primary focus on broad FS application, such as Core Banking or Cash Management with a strong Payment solution
• Polaris’ Intellect CBX was rated ‘Best In Class’ for User Experience and Design & Security in CEB TowerGroup's report on Commercial Online Banking
• Polaris was recognized as a ‘Major Contender’ and among the global best in Banking AO PEAK Matrix published by the Everest Group. Polaris also acquired the majority of Pure AO deals in 2012 and dominated the transaction activity among Tier-2 Indian Vendors
• Celent recognized Polaris’ Intellect CBS among ‘Leaders’ and among vendors with ‘Largest Market Shares Across All Asset Sizes’ in the APAC region
• Polaris’ Intellect Treasury, Intellect Risk Hub & Indigo GoTx were profiled among "Global Seven" TMS vendors that are able to commit to Global Treasury Changing Needs in Aite’s Report
• Tower Group rated Polaris ‘Best in Class’ in Payments Operations and recognized it amongst the Top 2 Vendors with the highest amount of Standard Functions. Tower Group stated: “The Intellect Payment Services Hub is a solid hub offering coming from a vendor with impeccable credentials and experience serving some the largest financial institutions in the world.”