Polaris Fin Tech

The performance of this IT company, sequentially has not exactly been encouraging with net profit for Q4FY15 falling 5% (QoQ) at Rs.37 crore and this was on a 1.5% drop in revenue at Rs.468 crore. Previous year financials are not comparable with the current year because of the demerger of the company’s product business. EBITDA for the quarter was down 7% at Rs.51 crore.

The market is enthused despite this performance probably because its margins came in pretty strong at 10.9% v/s 8.21%. It managed to keep a tight leash on costs and that helped shore up the margins despite the topline and EBITDA falling. The company has stated that it managed to get EBITDA where it is despite cross-currency movements and increased contribution towards CSR.

The company added five new clients during the quarter. In terms of geography, America’s came down from 55% to 52% though rest of the others rose – Europe went up from 20% to 21%, India rose from 7% to 8% and RoW rose from 18% to 19%. In terms of verticals, 48% (49% in Q3) of revenue comes from Treasury and Capital Markets, 21% (22%) from Corporate Banking, 18%  (17%) from Insurance and 13% (12%) from retail banking.

It ended FY15 with a consolidated net profit at Rs.167 crore, down 16% on a 24% drop in revenue at Rs.1894 crore. There was a 15% rise in cash at Rs.314 crore. It added 24 new clients during the year and it expects FY16 to a year of growth.