Press release from Business Wire India
Source: Polaris Software Lab Limited
Tuesday, October 19, 2010 02:01 PM IST (08:31 AM GMT)
Editors: General: Consumer interest, Economy; Business: Banking & financial services, Business services, Financial Analyst, Information technology, Stock exchanges; Technology
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Polaris Quarterly profit up 42%; Intellect Revenue Grows 45%
Global Sourcing increases 10% sequentially
Chennai, Tamil Nadu, India, Tuesday, October 19, 2010 -- (Business Wire India) -- Polaris Software Lab Limited (POLS.BO), a leading Financial Technology company, today announced the second quarter results for FY 2010-11.
Key Performance metrics
For the quarter ended 30 Sep 2010, Revenue grew by 15% to Rs. 388.34 crores from Rs. 338.31 crores. Profit after Tax (PAT) grew by 37% to Rs. 48.15 crores from Rs. 35.20 crores compared to the same quarter last year. Operating Profit (EBITDA) grew by 33% to Rs. 60.24 crore from Rs. 45.29 crore.
In dollar terms, Revenue grew by 20% to USD 83.59 million from USD 69.93 million, Profit after Tax (PAT) grew by 42% year-on-year to USD 10.36 million from USD 7.27million. Operating Profit (EBITDA) grew by 38% to USD 12.97 million from USD 9.36 million.
IntellectTM expansion
Polaris' flagship suite of Intellect products registered 17 wins in the second quarter and revenue from Intellect business grew 45% in dollar terms year-on-year.
Intellect business showed traction in the US and Canada where a top bank went live with Polaris IntellectTM GUB. A premier bank in Japan went live with Intellect solution. A leading bank in Egypt picked Polaris' Collect solution and a Tier 1 global bank went live with an innovative and complex solution in all its branches across Asia.
During the quarter, India's largest bank sponsored mutual fund, SBI Mutual Fund went live on Intellect GUB. Andhra Pradesh State Cooperative Bank Limited chose Polaris' Core Banking Solution (CBS) for all its 22 District Central Cooperative Banks (DCCB) spread across the state.
Global Sourcing
The quarter witnessed improvement in global sourcing traction with Total Services Revenue increasing by 10% sequentially (q-o-q). Europe grew 13% on a sequential basis during the quarter. All global G10 accounts showed quarter-on-quarter growth.
Market and Analyst Recognition
. Gartner positioned Polaris in the Leader's Quadrant in their report on Gartner's Magic Quadrant for International Retail Core Banking for 2010, saying Polaris was "identified as a vendor to demonstrate strong development methodologies and have a measurable strategy for disaggregating core banking functionality.."
. Forrester in their report Right And Wrong Reasons To Work with Tier Two Offshore Providers stated: "Polaris is an industry vertical/business-side specialist with teams of business analysts who track industry trends and can proactively build solutions.."
. Tower Group's report on Outsourcing for Innovation in Financial Services said: "Polaris is one of the top vendors who has introduced lots of Innovation in Financial Services Outsourcing."
Financial and Operating Highlights
. Net addition of 959 associates during the quarter, the highest in the last 12 quarters
. Americas and Europe grew 9% and 13% respectively q-o-q; Americas contributed 47%, EMEA 30% and Asia Pacific 23% of the quarter revenues
. Net Profit Margins improved 174 bps year on year
. Cash and cash equivalents stood at Rs. 477 crores at the end of the quarter; after Capex investment of Rs 40.68 crore and dividend payout of Rs 20.21 crore
. Annualized EPS grew by 36% to Rs. 19.43 from Rs. 14.27 in the same quarter last year
. The Days Sales Outstanding (DSO) stood at 44 days, reflecting high customer satisfaction and extreme execution
Arun Jain, Founder, Chairman & CEO, Polaris Software Lab Ltd., said, "New investments in technology have resulted in an upsurge in demand and the market is ready for the third wave in outsourcing. Polaris has prepared itself by adopting an integrated approach of products and services. We are well invested and prepared to ride this wave through license revenues and services around Intellect."
R Srikanth, President & CFO, Polaris Software Lab Ltd., said, "Polaris' proven low cost location (LCL) leverage using Managed Services Methodology has resulted in a significant increase in our global sourcing opportunities. Extreme currency volatility continues to be challenging and we are strengthening our operations model to protect our margins."
Business Outlook
At the Rs/$ exchange rate of Rs 44.94, we are confident of meeting the guidance of 31-33% growth. We are gearing up internal operations in anticipation that the rupee appreciation could touch Rs 41-42.50 resulting in a drop in the EBITDA margin. We are focusing on accelerating license revenues and services linked with Intellect implementations.
To view the Unaudited Financial Results, please click on the link given below:
Unaudited Financial Results
About Polaris Software Lab
Polaris Software Lab (POLS.BO) is a leading Financial Technology company, with its comprehensive portfolio of products, services and consulting. Polaris has a talent strength of over 10,000 solution architects, domain and technology experts. The company owns the largest set of Intellectual Properties in the form of a comprehensive product suite, IntellectTM Global Universal Banking (GUB) 10.0. IntellectTM is the first pure play SOA based application suite for Retail, Corporate, Investment banking and Insurance.
Polaris is headquartered in Chennai and has offices in all global financial hubs including Tokyo, Sydney, Hong Kong, Singapore, India, Dubai, Bahrain, Riyadh, London, Belfast, Zurich, Frankfurt, Toronto, New York, Chicago, Fremont, Pittsburgh and Chile. For more information, please visit http://www.polarisFT.com/
Investor Conference Call
Polaris Software Lab Ltd. will host an Investors Conference Call, where the Senior Management of Polaris will comment on the company's performance during the second quarter ended Sep 30, 2010 and respond to questions from participants. The conference call will take place at 16:30 Hrs IST on Tuesday, Oct 19, 2010
To participate in the conference call, please dial the numbers given below five minutes ahead of schedule. The transcript of this conference call will be available within 72 working hours at website, http://www.polarisFT.com/ in the investor section.
The dial numbers to join the conference call
Conference Name : Polaris Q2-2010-11 Investor Earnings Call
Date : 19th October 2010
Time : 16:30 to 17:30 HRS IST
Conference ID : 17771760
ACCESS NUMBERS
MUMBAI :Primary Access Toll Number: 02230360400
BANGALORE:Primary Access Toll Number: 08030360400
DELHI :Primary Access Toll Number: 01130360400
CHENNAI :Primary Access Toll Number: 04430360400
HONK KONG:Primary Access Toll free Number: 800901420
SINGAPORE:Primary Access Toll free Number: 8001011906
US and Canada:Primary Access Toll free Number: 18663944523
REPLAY : [19th October 2010 to 21st October 2010]
Replay ID/Conference # : 17771760
Primary Access Number : 02230360400
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CONTACT DETAILS
Shailesh Dhawla, Polaris Software Lab, +91 9711811460, shailesh.d@polaris.co.in
Dwaipayan Deb, Polaris Software Lab, +91 9962536442, dwaipayan.d@polaris.co.in
KEYWORDS
CONSUMER, ECONOMY, BANKING, BUSINESS SERVICES, Financial Analyst, IT, STOCK EXCHANGES, TECHNOLOGY
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