Rabin Ghosh

Mumbai: Strong growth in its products business has helped banking software maker i-flex solutions report a 40% year-on-year increase in net profit for the March quarter at Rs 185 crore.

Net revenues were up 12% at Rs 672 crore.

On a sequential basis, revenues were up 8.5%, while the net profit zoomed 73%.

For the full year ended March, revenues rose 15% to Rs 2,380 crore and net profit rose 12% to Rs 416 crore.

The company, which derives two-thirds of its revenues from the US and European geography in equal proportion, said it doesn’t foresee growth in US revenues given the ongoing credit crisis there, while Asia and Europe are seen growing at a healthy clip.

i-flex, 82% owned by Oracle Corp, is changing its name to Oracle Financial Services.

Chief financial officer Makarand Padalkar said for the quarter, i-flex’s products revenue, which is 62% of its topline, grew 23% year-on-year, while service revenues, at Rs 241 crore, registered a slight decline on account of delays in orders from some US clients.

The company reported a licence-fee revenue of $36 million. Its licence fees order book stands at $90 million, against $81 million last quarter.

i-flex recorded other income gains of Rs 33 crore from foreign exchange exposure, compared with a loss of Rs 1.9 crore a year earlier. The company expanded margins by 400 basis points yearon-year to 25.25%.

Padalkar said, “On the call side, we are running a tighter ship and taking advantage of consistency in business and global operations. On the put side,we are seeing deal sizes getting bigger. This is aiding margins.”

Source : DNA