Recently listed Intrasoft Technologies, which owns and operates the e-greeting cards portal 123greetings.com has reported a Consolidated Profit After Tax (PAT) of Rs. 87.96 million for the financial year ending March 31st 2010 (FY10), up from Rs. 53.82 million for FY09, on revenues of Rs. 309.07 for the year. Revenues are up from Rs. 233.51 million at the end of FY08. The company reported an Operating Income of Rs. 292.08 million, up 36.56% from Rs. 213.8 the previous fiscal. Other income was Rs. 16.98 million, down from Rs. 19.6 million the previous year. In the coming quarters, we may see other income increase, given that the company raised Rs. 536.5 million from its IPO.
For the quarter (Q410) the company has reported a consolidated PAT of Rs. 25.41 million on consolidated total income of Rs. 97.05 million. The company has issued an interim divident of 7.5%: Rs. 0.75 per share.
At the close of trading today, Intrasoft was trading at Rs. 125.45, much below its offer price of Rs. 145, and down 1.67 percent, on par with the 1.76 percent the BSE fell today. That said, executives of several Internet companies in India have been enthused by Intrasoft’s IPO.
Guidance for FY11
Intrasoft expects to end FY11 with an annual income of between Rs. 500-520 million, and a PAT of between Rs. 140-145 million. They expect EPS to increase to Rs. 10 per share, from its current level of Rs. 6 per share (post-IPO). We’ve asked Intrasoft for more details on their performance, and expectations, particularly given its dependence on online advertising.
It’s worth noting that in the year that the company went in for an IPO, it cut back significantly on sales and marketing expenses in the year: in FY09, Intrasoft spent Rs. 75.06 million on sales and marketing, while only Rs. 45.07 million was spent in FY10. Employee costs also grew only marginally year on year, from Rs. 34.33 million to Rs. 35.85 million, while general and administrative expenses skyrocketed from Rs. 34.55 million to Rs. 62.67 million.
Also, during the year, the company spent Rs. 53.72 million on product and content development; what’s remarkable is that it spent Rs. 24.64 million in Q4 alone, much more than what it spent in the entire fiscal FY09 – Rs. 23.66.
Results for 123greetings, which is an online greeting cards website, are likely to be lop-sided, and significantly dependent on the festive season: MD Arvind Kajaria says that the number of unique visitors during the festive season increased, hence led to a 32 percent growth in total income for the year, and a better second half.
Note: a quarterly comparison for Q4 isn’t possible since Intrasoft was listed recently.