Mumbai (India), December 18, 2014:
In a chat with ET Now, Arun Jain, CMD, Intellect Design Arena, talks about the company's prospects. Excerpts:
ET Now: Congratulations on the listing of Intellect Design Arena. Tell us about the leadership of this product business and the growth map you have set yourself for next five years.
Arun Jain: It is a very exciting moment for me personally, because it is a second innings, and second innings entrepreneur does not make the same errors which he made in the first innings.
In Intellect Design Arena we have four businesses. One is global transaction banking which is led by Manish Maakan. We have a second team of global consumer banking which is led by Jaideep Billa. We have a third team of risk and treasury products, which is led by Venkatesh Srinivasan. The fourth business is insurance products, which is led by Pranav Pasricha.
ET Now: Your topline has been flat at around $100 million over the last few years. What is the target you are now eyeing in the second innings?
Arun Jain: I do not want to commit to some number, we have not calculated properly. But the potential is there to triple our revenues in the coming years. This will translate into substantial increase in the margin on the EPS side. Our R&D costs have been constant in the product business.
ET Now: Post the demerger, Intellect Design can be considered as a start-up, and naturally, investment requirements would be going to be high. What is the plan as far as that aspect of the business is concerned? How are you raising capital to expand?
Arun Jain: We are trying to put in place a proper business model. We are looking at how cash will be generated and how it can be redeployed. We are inspired by models that have grown branch by branch. We also want to grow our business country by country.
We know it will take a one-year gestation period. We may be making loss in that 12-month period, but we are looking at return on sales and return on margins of sales for the next five years. That is how we are rolling out the model.
ET Now: Where is your current order book? Tell us how recent deals and clients wins have shaped up? What is the pipeline looking like?
Arun Jain: I will talk to you regarding this at the time of the third quarter results. Today, I would just like to celebrate the listing with the investors. I want to tell them that there is one company which is there for them — a company they can put their money on.
ET Now: We understand that the realignment efforts will take time to bear fruit. Your gross margins have consistently ticked around 50%, but EBITDA margins are yet to break into the green. Can we expect some improvement there?
Arun Jain: I would say we will be 55% by 2016 if everything goes right.
About Intellect Design Arena Ltd.
Intellect Design Arena Ltd, a Polaris Group company, is the world’s first full-spectrum banking products company with rich Intellectual Property developed over 25 years of deep banking domain experience, and the FT 8012 Design Centre, the world’s first design centre for financial technologies. Intellect’s products are built on the iDigital Platform with a range of products across :
- Global Consumer Banking (iGCB) : Core Banking; Loan Servicing; Debt Management; Loan Origination; Collateral & Limit Management; Wealth; Financial Advisor; Cards; Omnichannel; Payments
- Risk & Treasury Management (iRTM) : One Treasury; Basel III with Zf Risk Visualisation; Brokerage; Mutual Fund Exchange; Custody
- Global Transaction Banking (iGTB) : Corporate Banking Exchange; Customer Onboarding; Payments Services Hub; Receivables Management; Cash Management; Liquidity Management; Funds Control; Trade Finance; Supply Chain Finance; Treasury
- Insurance (intellectSEEC) : Distribution(Agent Workspace; Service & Distribution Exchange; Customer Distribution Exchange); Underwriting (Underwriting Workstation); Claims (Claims; Life Claims in the Cloud); Business Apps (Needs Analysis; Quote; e-App; Product Configurator); Business Component Software ( Business Component)
The Intellect iDigital Platform and suite of specialist products addresses the needs of financial institutions in varying stages of technology adoption and intelligent integration of legacy systems. And enables progressive digital transformation of banks for ever greater operational efficiencies, while being relevant and available across all forms of engagement: whether mobile, tablets or laptops. At the heart of this digital transformation that Intellect enables are the Operations Hubs for banking processes, and the Apps Vault for customer engagement and experience.
Intellect generates annual revenues of over Rs.550 Crore from product installations in 30 countries across 200 customers. The company’s performance is driven by over 3,000 Intellect solution architects, domain and technology experts, with a presence in major global financial hubs around the world. For further information on the organization and its solutions, please visit www.intellectdesign.com