IntraSoft Technologies, which owns & operates the egreetings business 123Greetings, has reported a profit after tax of Rs. 2.56 crore, up 14% year on year, and 160.8% sequentially: the company’s business is seasonal in nature, and one should expect revenues to go up during the festive season. Total income for the company was Rs. 9.36 crore, up 66.59% year on year, and 19.14% sequentially.
This growth could well be on account of an increase in its gifting business: the company says that they saw a considerable rise in orders delivered, and are adding new manufacturers and new product lines for gifting. However, readers should note that 123Greetings accounts gifting revenue at a gross level, so the margins will be lower than in the advertising business. The online gifting business was introduced only a few quarters ago, and Q3, with Diwali, Christmas and the festive season could deliver significant revenue growth. Q3 is traditionally the quarter for highest retail sales in the US.
In a statement, Intrasoft MD Arvind Kajaria warns that while new initiatives are generating revenues, they will take some time to add to profits. During the quarter, 123Greetings launched its Studio product, which allows users to create “artists worldwide to upload their personal creations and showcase them, in the form of e-cards, for 123Greetings users,” which the company hopes will help add multi-lingual and multi-cultural content to their website. The company says that its e-Invitations product, is ready for launch…though, as far as we can tell, it is already live.
123Greetings has utilized Rs. 6.92 crores of Rs. 53.65 crore it raised from the IPO.