How were the latest number of the Polaris group company Intellect Designs in Dec-21 quarter?

Intellect Design Ltd, part of the Polaris group of Chennai, reported 33% growth sales for the Dec-21 quarter at Rs.508.29 crore. The company operates on the cutting edge of digital and new era computing and cloud. During the December 2021 quarter, the dollar revenues also grew by 31%. The important factor of annualized recurring revenues (ARR) touched Rs.686 crore during the year while the revenues linked to licenses were up 200 bps.

The license linked revenues now account for 56% of total revenues for the current quarter. The company has cash stash in the balance sheet of Rs.431 crore and to boot the company is also zero debt on its books. The total DSO, a working capital measure, stands at approximately 129 days. On a sequential basis, the revenues were higher for the quarter by 19.56%; showing good top line traction and momentum.

Consolidated net profits for the Dec-21 quarter was up 25.5% at Rs.100.85 crore for the Dec2-1 quarter. This profit growth came largely on the back of a 37% growth in EBITDA for the quarter. However, the overall EBITDA growth was lower than the revenue growth if the cost of ESOPs was also included. That means, the effective manpower cost had actually led to lowering the operating profits if ESOPs were properly expensed.

Gross margins for the quarter stood at 59% for Intellect Design Arena in the Dec-21 quarter. Net margins tapered from 21.03% in the Dec-20 quarter to 19.84% in the Dec-21 quarter once the dilutive earnings impact of ESOPs are also factored in. Net margins were higher sequentially by 120 bps on a yoy basis.