i-flex net increases 48% for Financial Year Consolidated US GAAP net profits up by 71% Dividend of 50% recommended

Transcription

1 For Immediate Release i-flex net increases 48% for Financial Year Consolidated US GAAP net profits up by 71% Dividend of 50% recommended FINANCIALS AT A GLANCE FOR THE YEAR ENDED March 31, 2003 Indian GAAP (Consolidated) Revenues Rs 610 crore up 45% (F/Y) Net Profit Rs 171 crore up 48% (F/Y) US GAAP (Consolidated) Revenues Rs 636 crore up 46% (F/Y) Net Profit Rs 177 crore up 71% (F/Y) HIGHLIGHTS FLEXCUBE momentum continues: Ranked the No.1 selling Banking Package in the world for the year 2002, by International Banking Systems, UK. FLEXCUBE s acceptance as a platform of choice for global technology standardization gets a further boost with another win, from a major Japanese Bank, for a global rollout. Added 12 new product customers this quarter; half of these customers are from USA, Europe and Japan. Acquired 5 new customers for the Services business PrimeSourcing during the quarter. For the financial year, 59 new name customers added. The total number of cumulative customers serviced crosses the 400 mark across 93 countries. The product business continues to demonstrate strong growth, revenues increase 55%; Services business grows 33% in the financial year despite reduction in billing rates at the beginning of the year. Citigroup services business continues to expand with two new relationships started this quarter. However, for the year , the non-citigroup share of the services business increases to 39% as against 24% in the last financial year. Page 1 of 6

2 Product revenues for the year account for 64% of the total revenues up from 60% in the last financial year. The Company s focused efforts on collections have resulted in continuous reduction in the DSO on a quarterly basis. At the end of the financial year, DSO stands at 83 days as compared to 158 days at end of last financial year a 47% reduction. Development, Support, Demonstration and Contingency centers opened in New York and Singapore. Employee strength grows to 2,327, an increase of 295 as against last year. This translates to a 14% increase in staff on a revenue growth of 46%. Awards and Accolades i-flex ranked 36 among the Economic Times top 500 companies in India according to market capitalization. Ranks among the top five Information Technology companies in India in terms of market capitalization. ESC honors i-flex by conferring an award for excellence in exports for the year The Tower Group, in a report released in March on outsourcing, ranks i-flex the highest on domain expertise among other Indian software providers. i-flex ranked no 1 web-based cash management solution provider in Europe in an independent study conducted by Celent Communications. Mumbai, May 16, 2003: The Board of Directors of i-flex solutions limited, a leading provider of IT Solutions to the financial services industry worldwide, today approved the results for the financial year ended March 31, The Board has recommended a dividend of 50% (Rs per share) for the financial year. Rajesh Hukku, Chairman and Managing Director said, Our product-led business model has truly reinforced our ability to grow despite a challenging business environment. We continue to invest in global sales and marketing infrastructure and branding efforts to sustain this momentum. R. Ravisankar, CEO (International Operations and Technology) said, Our strategy of focusing on domain expertise and intellectual property, coupled with global diversification, is clearly resulting in increased business momentum. We are making progress towards our goal of becoming the globally preferred IT solutions provider to the financial services industry. Commenting on the results, Deepak Ghaisas, CEO (India Operations) and CFO, said, The last financial year has seen the company perform better than ever before. We are delighted to report significant growth both in both revenues and earnings, driven by our growth-oriented and well -hedged business model. Page 2 of 6

3 Financial Performance: Financial Results for the financial year ending March 31, 2003 All amounts in Rs.000 i-flex solutions ltd and its subsidiaries Consolidated Income Statement as per Indian GAAP For the Year ended Mar 31, 2003 Quarter ended March 31, 2003 Quarter ended Dec 31, 2002 REVENUES 6,098,543 1,619,562 1,633,352 Cost of Revenues 2,524, , ,280 Gross Profit 3,574, , ,072 Selling and marketing expenses 870, , ,625 General and administrative expenses 743, , ,598 Depreciation and amortization 151,298 43,111 38,111 Income from operations 1,808, , ,738 Reversal of diminution in value of investment 12,427 10,109 3,974 Profit on sale of investment Interest and Other income/(expenses) 140,601 (14,256) 61,139 Income before provision for income taxes 1,961, , ,886 Provision for income taxes 252,729 69,593 55,292 Net Income 1,708, , ,594 EPS (diluted) stands at Rs under Indian GAAP Consolidated (growth of 33 per cent) Page 3 of 6

4 i-flex solutions ltd and its subsidiaries Consolidated Income Statement as per US GAAP Year ended Mar 31, 2003 Quarter ended Mar 31, 2003 Quarter ended Dec 31, 2002 Quarter ended Mar 31, 2002 REVENUES 6,357,356 1,630,593 1,740,170 1,269,242 Cost of Revenues 2,743, , , ,498 Gross Profit 3,614, ,418 1,059, ,744 Selling and marketing expenses 872, , , ,214 General and administrative expenses 731, , , ,335 Depreciation and amortization 142,327 41,695 35,232 47,858 Income from operations 1,868, , , ,337 Other than temporary diminution in value of securities available for sale Share of associate company loss 17,924 2,384 1,516 12,859 Interest and Other income 173,242 19,538 60,469 25,136 Income before provision for income 2,023, , , ,614 taxes Provision for income taxes 252,729 69,593 55,292 17,964 Net Income 1,770, , , ,650 EPS (diluted) stands at Rs under US GAAP (growth of 52 per cent) Page 4 of 6

5 About i-flex solutions i-flex solutions (Reuters: IFLX.BO & IFLX.NS) is a world leader in providing IT solutions to the financial services industry. i-flex has serviced over 400 customers across 93 countries. i-flex offers a comprehensive range of products and customized services that enable financial institutions to cut costs, respond rapidly to market needs, enhance customer service levels, and mitigate risk. i-flex s portfolio of offerings comprise FLEXCUBE, an end-to-end product suite for consumer, corporate, investment and internet banking, asset management, and investor servicing. Since its launch in 1997, more than 140 financial institutions across 65 countries have preferred FLEXCUBE. FLEXCUBE has been ranked the No. 1 selling Universal Banking Solution in the world by International Banking Systems (IBS-UK). PrimeSourcing TM is i-flex s customized application software development and deployment methodology. PrimeSourcing allows financial institutions to cut costs and reduce risk because it is supported by SEI-CMM Level 5 processes and Centers of Excellence that remain focused on domain and technology areas such as Business Intelligence, CRM, Insurance and Payment Systems, Java, and e-services. Reveleus, the industry s only metadata-driven information management infrastructure, coupled with a suite of integrated analytical applications, is a business intelligence solution. Reveleus improves quality and consistency of information, thereby helping organizations reduce risk and improve efficiencies in information gathering, analysis and distribution. i-flex Consulting, offers an end-to-end consulting partnership. It provides comprehensive business and technology solutions that enable financial services enterprises to create new business models, enhance competitive advantage in the digital marketplace, and implement efficient ways to transact business. It provides business and IT strategy consulting, business and technology consulting and process and quality consulting. i-flex is India s largest product software company (Source: NASSCOM Software and Service Industry Performance Report ). i-flex has been declared the Best Newly Listed Indian Company by Asiamoney in its 2002 poll. Business Today, in its survey on Wealth Creation by Indian companies, has rated i-flex as 14 th largest company in India in terms of market capitalization and 5 th largest in the IT segment. The Economic Times ranks i-flex 36 among the top 500 companies in India and among the top 5 in the IT sector, according to market capitalization. Deloitte Touche Tohmatsu Asia Pacific Technology Fast 500 report ranks i-flex amongst the Top-250 fastest growing and the most dynamic technology companies in Asia. Technology Fast 500 is part of an integrated global program recognizing the world s fastest growing and most dynamic technology companies. i-flex has successfully completed the SAS 70 audit. The i-flex Facilities Management Group at i-flex s Bangalore office is certified for Control OBjectives for Information and related Technology (COBiT) compliance by external auditors. SAS 70 is a globally accepted auditing standard, developed and maintained by the American Institute of Certified Public Accountants (AICPA). COBIT has been instituted by the Information Systems Audit and Page 5 of 6

6 Control Foundation (ISACA), a recognized global leader in IT governance, control and assurance. i-flex has over 2,300 employees, with 10 development centers across India, Singapore and New York. The company has a strong global reach, with sales, marketing and support presence covering 17 overseas locations including 3 subsidiaries (i-flex solutions inc. in the US, i-flex solutions b.v in the Netherlands, and i-flex solutions pte. ltd. in Singapore). In addition, i-flex is represented in over 50 countries through more than 30 corporate business partners. i-flex also has strong alliance and implementation relationships with industry leaders Hewlett Packard, IBM, Intel, Microsoft, Oracle, and Sun Microsystems. For further information please visit: and Contact: Sunil Robert, i-flex solutions limited ext Percy Dubash, Adfactors PR Page 6 of 6