Earnings|3i Infotech Limited (NSE:3IIFOLTD): Q3FY23 Results Out; Total Income rise 9% YoY

3i Infotech Limited (NSE:3IIFOLTD) is an Indian multinational IT company that offers a wide range of software solutions and services for various industries such as banking, insurance, and healthcare. 3i Infotech provides a range of services including application development and maintenance, infrastructure management, testing and quality assurance, and business process outsourcing.

3i Infotech Limited reported a consolidated revenue of Rs 182.3 crore for the quarter ended December 31, 2022, with a 10% YoY and 2.9% QoQ growth. The company has been able to increase its revenue mix from classic enterprises to the next generation business, with revenues growing by 7.43% to Rs 538.7 crore for the first nine months of the current fiscal year. The company is focused on achieving a revenue target of US$ 1 billion by 2030 and has been successful in increasing its topline while reducing EBITDA losses.

On a year-on-year basis, the company’s total income also increased from the same period last year, with total income reaching Rs. 185.46 crore during the period ended December 31, 2022, compared to Rs. 169.96 crore reported for the same period in 2021. The company’s net profit for the period ended December 31, 2022 was a positive Rs. 13.05 crore, compared to a net loss of Rs. -22.63 crore reported for the same period in 2021. The EPS for the period ended December 31, 2022 was Rs. 0.77, a significant improvement from the EPS of Rs. -1.33 reported for the same period in 2021.

Commenting on the Q3FY23 results, Mr. Thompson P. Gnanam, Managing Director and Global CEO, of 3i Infotech Limited, said: “The results for this quarter were in-line with our expectations. Despite macroeconomic uncertainty and furloughs in the quarter, we grew our revenue by 10% on a year-on-year basis. Our EBITDA margin is inching towards breakeven led by our focused cost rationalization strategy. We continue to remain focused on expanding our Edge computing capabilities, with the recent deal win of the RailTel WiFi Monetization Project being a key trigger to accelerate the momentum. While we see some macro issues and general weakness in the overall market, the demand environment continues to remain stable for us. The Company is slowly but surely transitioning to a services led portfolio offering with a focus on high growth and stable margins in the quarters to come.”