IntraSoft Technologies, which owns & operates the egreetings business 123Greetings, has reported a profit after tax of Rs. 3.84 crore for the quarter ending December 31st 2010, on revenues of Rs. 15.15 crore, at a consolidated level. Coming on the back of what is seasonally its most successful quarter, the company reported a 46.87% year on year increase in operating revenues, and a 21.46% increase in net profit. The company has declared an interim dividend of 10%.
Readers should keep in mind, though, that Other Income contributed to 32.68% of net profit for Intrasoft in the quarter, while a year ago, before its IPO, it contributed only 12.07%. If you remove the contribution of Other Income, then profit was 7% lower: down to Rs. 2.59 from Rs. 2.78 crore. One of the reasons could be the increase in sales and marketing costs – during the festive season, Intrasoft’s sales and marketing costs were up 60.36% year on year to Rs. 4.66 crore.
Launches Online Store
During the quarter, 123Greetings launched its online store, to push its gifting business, to allow users to send gifts along with greeting cards. During the quarter, it announced the launch of its Invites site, even though the service has been live for quite a while. Note that 123Greetings is essentially targeting the US market with these gifts. We checked, and the store features fragrances, Electronics (MP3 players, Cameras, home entertainment) and Knife sets, and toys and games.
The company says that its 123greetings Studio, which allows users to create their own cards, has added over 6000 registered users. Also, 571,156 users have registered with 123Greetings Connect, their address book feature.