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After two quarters of declining profits, Intrasoft Technologies, which owns and operates the e-greeting cards site 123greetings.com reported a 35.6% increase in its net profit to Rs 0.99 crore from Rs 0.73 crore in the same quarter last year.

The total operational revenue also increased by 132% to Rs 47.2 crore for the quarter, from Rs 20.33 crore in the same quarter last year.

For the year ending March 31, 2014 (FY14), Intrasoft Technologies however saw a decline in its profits to Rs 2.06 crore, down 32.5% from Rs 3.05 crore profit in FY13. The total income was at Rs 149.54 crore for the fiscal, up 69.5% from Rs 88.24 crore in the previous fiscal.

Note that 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.

E-Commerce Business: 123Greetings Store, the company’s online gifting e-commerce business shipped a total of 88,617 orders during the quarter, more than double of 43,644 orders in the same quarter last year.

The store recorded an average of 985 orders per day, up from 485 orders per day in the same quarter last year. This was from an active base of 975 vendors, as compared from 456 vendors in Q4-FY13 and 881 vendors in Q3-FY14. The company has listed 129,129 products at 554,397 places across its website & other marketplaces as of March 31, 2014.

Intrasoft Technologies Managing director Arvind Kajaria mentions that they witnessed a significant growth in vendor tie-ups and addition of new customers during the quarter. He also noted that their past investment in backend software and systems has yielded the anticipated results. “As we continue to invest deeper into our services on a daily basis, our revenues and profits will continue to grow”. In the previous quarter, Kajaria had told that they had increased investments in its e-commerce business by automating various processes and increasing the team size during the quarter.

Mobile e-cards: Users sent around 105,749 e-cards through 123greetings’ mobile apps, registering a 49% sequential growth from 70,962 e-cards in the previous quarter. The company had launched its iOS and Android apps in the previous quarter.

123Greetings.com also witnessed a 84.6% growth in total visitors from handheld devices to 7.4 million for the quarter, from 4.01 million in the same quarter last year. The company also mentioned that it is currently making investments to scale-up 123Greetings’ presence and market share on mobile devices, although it hasn’t disclosed any specific details on how the company plans to do this.

123Greetings Studio: 123Greetings Studio delivered 1,210 additional e-cards during the quarter, up 69% from 715 cards in the same quarter last year. It also grew its regional and International language content library with 241 new e-cards across Hindi, Russian, Mandarin, Spanish, German and French languages for key holidays and occasions.

Expenditure

The product and content development expenditure has almost doubled to Rs 35.92 crore from Rs 16.35 crore in the same quarter last year. The sales and marketing expenses have also shot up to Rs 7.47 crore from Rs 2.67 crore in the same quarter last year.

The general and administrative expenses increased to Rs 4.47 crore from Rs 2.35 crore in Q4-FY13, while the employee costs went up to Rs 3.66 crore from Rs 1.13 crore in Q4-FY13.

– Software Write Off: The company management has decided to write off software resources worth Rs 18.11 crore as an exceptional item, since it is no longer usable due to changes in its technology.

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