Polaris Financial Technology Limited - QTRLY RESULTS - Q3 FY 2012 - Q/E DEC,2011 - NET INCOME BY 43.17% YoY; C-NPT UP BY22% YoY

Polaris Financial Technology Limited

NSE Symbol        POLARIS

POLARIS SOFTWARE TECHONOLGY LTD has produced good results for the Q3 FY 12 ending Dec,2011.

Net Income from sales / services in Q3 FY 12 stands at Rs.572.53 cr – up by 12.32% from Q2 FY 12; up by 27.18% from Q1 FY 12; and up by  43.17% from Q3 FY 11.

Raw Materials in Q3 FY 12 is Rs.376.61 Cr – up by 4.48% from Q2 FY 12; up by 22.06% from Q1 FY 12; and up by  38.38% from Q3 FY 11.

OPT after Interest is Rs.91.65 Cr – up by 43.44% from Q2 FY 11; up by 71.41% from Q1 FY 12; and up by 111.3% from Q3 FY 11.

Profit before tax has come down due to negative other income – to Rs.79.25 Cr in Q3 FY 12; up by 8.89% from Q2 FY 12; up by  28.90% from Q1 FY 12; and by  31.57% from Q3 FY 11.

Net Profit  stands at Rs.60.99 Cr in Q3 FY 12 – up by  13.07% from Q2 FY 12; Up by  36.86% from Q2 FY 12; and up by  21.6% from Q3 FY 11.

Consolidated NPT stands at Rs.61.07 Cr in Q3 FY 12 –  compared to Rs.53.94 cr in Q2 FY 12 (Up by 13.23%) – Rs.44.56 Cr in Q1 FY 12 (Up by 37.05%) and Rs.50.13 Cr in Q3 FY 11 (Up by 21.83%).

Basic EPS, on a Face Value of Rs.5, stands at Rs.6.15 in Q3 FY 12; Rs.5.43 in Q2 FY 12 and Rs.4.49 in Q1 FY 12. At this rate, the annual EPS for FY 12 comes to Rs.22.22.

Current Market price is Rs.133.20, while the 52 week high price  is Rs.213.90 and the 52 week low price  is Rs.112.

The PE Ratio comes to 5.99.

CONSOLIDATED RESULTS TABLE

POLARIS-CONSOL	Q3FY12	Q2FY12	%DIF1	Q1FY12	%DIF2	Q3 FY 11	%DIF3
Net Income from sales / services	57253.1	50,973.68	12.32	45,018.87	27.18	39,989.50	43.17
Raw Materials	37660.5	36,045.21	4.48	30,853.78	22.06	27,216.23	38.38
Other Expenditure	-	-1,349.25		-561.92		-
Gross Profit	19592.6	16,277.72	20.36	14,727.01	33.04	12,773.27	53.39
G/A Expenses	3441.34	3,297.28	4.37	3,298.35	4.34	3,207.13	7.3
S & D Expenses	5599.18	5,415.80	3.39	5,077.31	10.28	4,327.16	29.4
Depreciation	1305.56	1,118.45	16.73	956.35	36.51	873.84	49.4
OPT before Interest	9246.51	6,446.19	43.44	5,395.00	71.39	4,365.14	111.83
Interest	81.4	56.85	43.18	48.17	68.98	27.59	195.03
OPT after Int+EI	9165.11	6,389.34	43.44	5,346.83	71.41	4,337.55	111.3
Other Income	-1239.87	889.09	-239.45	801.68	-254.66	1,685.99	-173.54
Profit before tax	7925.24	7,278.43	8.89	6,148.51	28.90	6,023.54	31.57
Tax Expense	1826.53	1,884.82	-3.09	1,692.48	7.92	1,008.03	81.2
Net Profit	6098.71	5,393.61	13.07	4,456.03	36.86	5,015.51	21.6
Minority Interest	-8.39	-		-		2.62	-420.23
Consolidated NPT	6107.1	5,393.61	13.23	4,456.03	37.05	5,012.89	21.83
Face Value (in Rs.)	5	5	0.00	5	0.00	5	0
Basic EPS	6.15	5.43	13.26	4.49	36.97	-
Diluted EPS	6.12	5.4	13.33	4.46	37.22	-

OTHER DETAILS

• Intellect Revenues Up by 13% Sequentially and 69% Annually

• EBITDA up by 13% Sequentially and 63% Annually

• Interim Dividend of 40% Declared

For the quarter ended December 31, 2011, Revenue grew by 43% Y-o-Y to Rs 572.53 crore from Rs 399.90 crore and 12% Q-o-Q from Rs 509.74 crore. Operating Profit (EBITDA) grew by 33% Y-o-Y to Rs 85.31 crore from Rs 63.91 crore and 13% Q-o-Q from Rs 75.53 crore. Profit after Tax (PAT) grew by 22% Y-o-Y to Rs 61.07 crore from Rs 50.13 crore and 13% Q-o-Q from Rs 53.94 crore.

The Board of Directors recommended an interim dividend of Rs 2 per share (40%) on the equity share capital of the company for fiscal 2011-12.

• Product revenues grew 69% to Rs 157.66 crore, up from Rs 93.17 crore during the same quarter last year; 13 new Intellect wins across Banking and Insurance were recorded in the quarter

• Services revenue grew 35% to Rs 414.87 crore from Rs 306.73 crore during the same quarter last year

• Quarter revenues were well distributed with Americas contributing 44.87%, Europe

22.97%, IMEA 11.22% and Asia Pacific 20.94%

• Cash and cash equivalents stood at Rs 419 crore at the end of the quarter

• Polaris bagged a $ 20 million deal with a leading global bank with presence in over 25

countries

• Excluding foreign exchange other income impact, operating profit grew by 101% Y-o-Y to Rs 105.52 crore from Rs 52.39 crore and to 70% Q-o-Q from Rs 62.15 crore

Intellect Business

Polaris’ Intellect registered 13 wins during the third quarter and Intellect sales contributed to 28% of the quarterly revenue. Intellect revenues grew 69% Y-o-Y to Rs 157.66 crore from Rs 93.17 crore during the same quarter last year. The wins were well distributed across all geographies with US leading the mature market growth story

One of the largest American multinational banking and financial services corporation serving clients in more than 150 countries has trusted Polaris Intellect solution.

A highly diversified North American financial services organization with more than 47,000 employees and a broad range of retail banking, wealth management and investment banking products and solutions has chosen Polaris’ Intellect HUB Technology in a multi-million dollar deal.

One of the largest banking and financial services organizations in the world headquartered in London with presence in over 80 countries across the globe has gone live with Polaris' Intellect Cash Concentration Solution to service its business customers in 22 countries.

A leading global bank with presence in 32 countries providing a range of banking and financial products and services to around 8 million customers worldwide signed a $ 20 million deal with Polaris.

An Apex development bank in India, National Bank for Agricultural and Rural Development (NABARD) chose Polaris’ Integrated Intellect Lending Solution in a mutli-million dollar deal comprising Loan Management and Accounting modules to be the bank’s new Centralized Loan Management and Accounting System across the bank’s head office and regional offices.

Polaris sets its footprint in the Himalayan Kingdom of Nepal by going live at Social

Development Bank (Nepal) with Intellect Core Banking Solution.

The largest development bank with the third largest branch network of 253 branches in Sri Lanka chose Polaris’ Intellect Core Banking Solution.

FT Sourcing (Managed Services)

Polaris recognises each line of business is a specialised service with unique tools and procedures,thus enabling the company to drive maximum sourcing efficiencies, through both standardized and custom solutions. Our integrated FT Sourcing services helped achieve maximum optimization for our clients’ business needs.

One of the oldest financial institutions in the United States with operations in more than 60 countries has chosen Polaris for its Project Management Process Re-engineering services.

One of the most successful IT company in Northern Ireland delivering the highest quality software development services and business process outsourcing solutions has signed a deal with Polaris to implement Oracle database services, thus streamlining its transformation program.

Business Highlights

During the quarter, Polaris signed a Joint Venture Agreement with Sonali Bank Ltd., the largest Nationalized Commercial Bank in Bangladesh to form Sonali Polaris Financial Technology Ltd  (SPFTL) where Polaris will hold a 51% stake. In July 2011, the company had signed a MoU regarding the same. This JV will create significant job opportunities in the local market.

The company signed an agreement to acquire the balance 49% equity shares of Indigo TX Software Private Limited from its shareholders to merge the company with Polaris. Polaris had acquired 51% equity shares of Indigo TX in March 2010.

IdenTrust continued its growth in the ECA business during the quarter and bagged a significant Identity Solutions deal with Rite Aid, one of the leading drugstore chains in the US with approximately 4,700 stores in 31 states and 91,000 associates.

Arun Jain, Founder, Chairman & CEO, Polaris Financial Technology Limited said, “We

are moving from country-specific deals to regional country roll-out deals. The top 20 global banks have started recognizing the large-scale programme management of Polaris with single point accountability and capabilities of the Intellect suite. We have won the fourth large deal of this nature that spans over 20 countries from top global banks.”

“On one side, these deals provide sustained revenues over a 10 year period, while simultaneously providing Polaris with excellent referenceable sites which is crucial for penetrating into large transformational deals. Our strategy of leveraging Intellect to expand the services business is working very well. We are geared up for exciting times ahead,” added Mr Jain.

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