Polaris Software Lab Limited : Q3 Profits up 14% Quarter on Quarter, 8% Year on Year

Jan 20, 2010, 04:06 ET from Polaris Software Lab Limited

CHENNAI, India, January 20 /PRNewswire-FirstCall/ --

- Intellect (Product) Revenues Grow 15% Sequentially

Polaris Software Lab Limited (POLS.BO), a leading Financial Technology company, today announced the third quarter results for FY 2009-10.

For the quarter ended 31 December 2009, Profit after Tax (PAT) grew by 14% to Rs. 40.07 crore from Rs. 35.20 crore in the previous quarter. Income grew by 0.2% to Rs. 338.89 crore from Rs. 338.31 crore.

In dollar terms, Profit grew by 18% to $8.58 million from $7.27 million and income grew sequentially by 4% to $72.55 million from $69.93 million.

The Board of Directors recommended an interim dividend of 35% on the paid up capital of the company.

    Financial Highlights

    1. Net Profit Margins improved 143 bps over the previous quarter
    2. Cash and cash equivalents crossed Rs. 500 crores; and stood at
       Rs. 509.73 crore (~$110 million) after funding Rs. 34 crore towards
       Laser Soft acquisition
    3. Americas contributed to 43%, EMEA (Europe, Middle East and Africa)
       contributed to 26% and Asia Pacific contributed to 31% of the
       quarter revenues, maintaining a balanced revenue portfolio
    4. The Days Sales Outstanding (DSO) set a new benchmark of 41 days,
       reflecting high customer satisfaction and extreme execution
    5. Annualized EPS for Q3 grew to Rs. 16.24, as against Rs. 14.28 in the
       previous quarter

    Business Highlights

    1. During the quarter, the company recorded 30 wins
    2. Three customers in North America and two customers in Europe chose
       Polaris for their Financial Technology outsourcing needs
    3. Polaris registered highest sales of Intellect during the quarter with
       14 wins
    4. Intellect revenues grew to 20.11% of the company revenues in the
    5. The company won two large Intellect core banking deals, one each in
       Vietnam and Japan. This was the third major core banking win in the
       Vietnam region
    6. The company won Intellect Liquidity deals one each in the US and
       Asia Pacific

    Awards and Recognition

    1. Laser Soft, Polaris' wholly owned subsidiary won NDTV Business
       Leadership Awards 2009, under the 'Inclusion and Diversity' category
    2. The company once again got successfully assessed at CMMi Level 5 for
       its software services, Intellect Global Universal Banking product
       spanning all micro verticals within BFSI and across all business
       solution centers
    3. Intellect GUB continued to receive market recognition from leading
       a. Polaris Payment Services Hub was featured in a report for its
          ability to suit both 'Build' and 'Buy' alternatives for banks; by
          the world's leading information technology and research and
          advisory company
       b. Polaris featured amongst the Bank Technology Executive's most
          admired vendors for Core Banking by Aite Group

Product Launch

Polaris launched Intellect Insurance Portal developed using cutting edge technology to provide higher functionality at the right price point for the growing insurance market in developing countries.

Arun Jain, Chairman & CEO, Polaris Software Lab Ltd., said, "Intellect GUB, our comprehensive product suite for next-generation banking is now in the 3rd phase of its journey, marked by strong momentum in sales and positive impact on margins. With over 150 Intellect implementations across the globe, our customers and prospects have begun to view us as a category leader in Financial Technologies. Backed by our strong services and solution capabilities, we are poised to expand our market share in a recovering BFSI marketplace."

R Srikanth, Executive Vice President & CFO, Polaris Software Lab Ltd., said, "During the last 10 quarters, our relentless focus on improving operating efficiency has enabled us to generate Rs. 510 crore of cash in the books. This will serve as a strong lever for inorganic growth plans."

         Financial Results for the Third Quarter ended December 31, 2009

                       POLARIS SOFTWARE LAB - GROUP
                   31 2009 PREPARED AS PER INDIAN GAAP
                                                                    Rs Lakhs

                             QUARTER ENDED     NINE MONTHS ENDED  YEAR ENDED
    Particulars          December  December   December   December      March
                         31, 2009  31, 2008   31, 2009   31, 2008   31, 2009
    Income from software
    services, products
    and Business Process
    Management          33,888.55 37,257.80 100,271.92 104,069.93 137,794.54
    Software development
    expenses            21,846.50 23,234.77  64,697.61  67,618.93  88,540.10
    Gross Profit        12,042.05 14,023.03  35,574.31  36,451.00  49,254.44

    Selling and
    marketing expenses   3,610.04  3,504.45  10,636.09  10,120.07  13,676.09
    General and
    expenses             2,954.39  2,978.35   8,550.11   9,158.08  12,225.91
    Operating Profit
    before interest,
    depreciation &
    amortisation         5,477.62  7,540.23  16,388.11  17,172.85  23,352.44

    Amortisation           864.57    880.01   2,582.37   3,022.90   3,878.16
    Finance Charges         21.62     17.77      56.12      54.99      73.54
    Operating Profit
    after interest,
    depreciation &
    amortisation         4,591.43  6,642.45  13,749.62  14,094.96  19,400.74

    Exchange Gain/
    ( Loss )              (420.38)(2,854.15) (2,608.98) (3,679.58)  5,638.40)
    Other Income           499.56    466.09   1,333.56     746.18   1,175.31
    Share of profit/
    (loss ) of Associate
    Companies                   -     23.63     (41.61)    101.11      91.09
    Profit on sale of
    Associate Companies         -         -          -   1,301.37   1,301.37
    Intangible Assets -
    Amortised fully             -         -          -  (1,173.27) (1,173.27)

    Profit before tax    4,670.61  4,278.02  12,432.59  11,390.77  15,156.84

    Provision for taxation 663.22    561.29   1,722.06   1,530.16   2,085.58

    Profit after tax     4,007.39  3,716.73   0,710.53   9,860.61  13,071.26

    Earnings per share
    of Rs.5 each (Rs.)
      Basic                  4.06      3.77      10.85       9.99      13.25
      Diluted                4.02      3.77      10.76       9.99      13.24

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 9,000 solution architects, domain and technology experts. The company owns the largest set of Intellectual Properties in the form of a comprehensive product suite, Intellect 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.polaris.co.in/

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 third quarter ended December 31, 2009 and respond to questions from participants. The conference call will take place at 17:00 Hrs IST on Wednesday, January 20, 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, www.polaris.co.in in the investor section.

    The dial numbers to join the conference call

    Conference Name        :  Q3 Polaris Investor Earnings Call
    Date                   :  Wednesday, 20th Jan 2010
    Time                   :  17:00 HRS IST
    Conference ID          :  50313273

    Access Numbers for the call

    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
    REPLAY                 :  [20th January 2010 to 22nd January 2010]
    Replay ID/Conference # :  50313273
    Primary Access Number  :  02230360400

    For further information, please contact:

    Shailesh Dhawla
    Polaris Software

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