For its third quarter of the 2012-2013 fiscal (Q3-FY13), ended December 30, 2012, Intrasoft Technologies, which owns and operates the e-greeting cards site 123greetings.com, has reported a Consolidated Profit After Tax (PAT) of Rs 0.82 crore,  a 64.55% decrease from Rs 2.32 crore from the same quarter last year. This is on an income (not including ‘Other Income’) of Rs 29.02 crore, up by 22% year-on-year (YoY) from Rs 23.92 crore.

The Operating EBITDA (Earnings before interest, taxes, depreciation and amortization) for the quarter decreased to Rs. 3.23 crore as compared to Rs. 5.39 crore in Q3 FY 2012.

These consolidated results include the results of the company’s wholly owned subsidiaries, 123Greetings.com, Inc(USA), 123Greetings Singapore and One Two Three Greetings(India). 123Greetings primarily targets the US market.

Operational Highlights:

– 123Greetings Store, the online gifting e-commerce business, shipped a total of 51,546 orders during the quarter, averaging approx 560 orders/day. 123Greetings store expanded its product catalog and during the quarter 67,713 products were listed on its websites & various marketplaces. The Company has an active base of 389 vendors as compared to 161 vendors in the corresponding quarter of last year.

– 123Greetings e-cards continues to maintain traction and witnessed an addition of 1,139 new cards in the quarter.

– 123Greetings Connect, a value added service saw the total number of registered users at 2,027,285 as on December 31, 2012, recording a 25% growth from the corresponding quarter of last year.

– 123Greetings Studio saw the total number of registered users at 21,354 as on December 31, 2012, recording a 53% growth from the corresponding quarter of last year.

– During the quarter, 123Greetings Studio introduced a Reward Plan for the Artists under which 430 artists registered themselves and contributed to 661,913 Cards sent.

– The company has invested over Rs. 37 Crores in technology infrastructure to strengthen its proprietary backend software & systems during the last 2 years.

Expenditures

Intrasoft spent Rs 19.07 crore towards product and content development in this quarter, a 41.96% increase from Rs 13.43 crore allocated in the same quarter last year and Rs 4.25 crore towards sales and marketing this quarter, up 27.92% from Rs 3.32 crores in the same quarter last year.

The employee costs went up to 1.16 crore, up 17.95% from Rs 98.48 lakh that it spent in the same quarter, last fiscal, while general and administrative expenses increased by 74.44% to Rs 1.35 crore from Rs 0.77 crore and the depreciation cost shot up by 141.69% to Rs 2.04 crores from 0.84 crores in the same quarter last year. It stated that the employees cost increased during the quarter due to increase in number of employees on account of growth in the Company’s business operations. It also stated that depreciation cost increased due to the additional investments made in the technology infrastructure during the last 2 years, the purchase of the office premises as well as new furniture and fixtures.

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