Intellect Design revenue jumps 20%, losses halve sequentially

MUMBAI: Intellect Design Arena, the banking products firm that was spun off from IT firm Polaris, said revenue rose nearly 20 per cent sequentially and losses narrowed as the company contains spending in software development and marketing.

For the quarter ended June, revenue rose 20 per cent to Rs 193 crore. Losses more than halved to Rs 11 crore, from Rs 29 crore in the previous quarter.

"We are on track to meet our guidance of revenue growth of 22 per cent to 26 per cent this year. There has been a significant reduction in losses. We are managing investments in digital platforms and market opportunities for sustained growth," S Swaminathan, chief financial officer of Intellect Design said in a statement.

Sales and marketing expenses were contained at 29 per cent of revenue, compared to 32 per cent in the previous quarter. The company held the gross margin at the 50 per cent level over the last 12 quarters.

The company also said it won 13 new deals in the quarter.

"The acceptance of our new-age products in advanced markets such as North America and Europe, as well as winning two significant digital transformation deals in North America and APAC is extremely encouraging," Arun Jain, chairman and managing director of Intellect Design, said.