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  /  Latest News   /  3i Infotech Ties-up with IIT Madras to Establish FutureTech Business labs
3i Infotech

3i Infotech Ties-up with IIT Madras to Establish FutureTech Business labs

Also announces investment in partner ecosystem for SASE, edge computing, IoT, and EdTech technologies

Bangalore, May 11, 2022: 3i Infotech Limited (BSE532628NSE3IINFOLTD), a global Information Technology company, committed to accelerating business transformation, announced its consolidated financial results for its fourth quarter ending March 31, 2022, and for the fiscal year 2021-2022 (FY22). The company also made a series of key updates, which include – in FY22, 3i Infotech has tied up with IIT Madras to establish FutureTech (earlier NextGen) business labs taking Telecom, Manufacturing, Logistics, and Healthcare as a priority sector. The company has initiated the setting up of development centers in Tier II / III cities and the first center would be functional in Q1 FY23. 3i Infotech has also invested in partner ecosystem for SASE, edge computing, IoT, and EdTech technologies, potential growth opportunities globally in FY23.

In tune with the evolving tech landscape and rapid digital proliferation, the company also mentioned that it would help enterprises to be industry 4.0 ready through its service offerings. Apart from BFSI, manufacturing (SMB and midmarket), retail, telecom, media, and entertainment sectors, 3i Infotech will also keenly focus on emerging industry verticals like EdTech, agritech, and Greentech.

3i Infotech will actively scale its operations across the global business region, which comprises of US, UK, Middle East, and Africa. In the US, the company plans to expand its BFSI, telecom, media, and entertainment presence, and in parallel launch its SMB strategy which is NuRe led. In the UK, the company wants to lead through telecom, media, entertainment, manufacturing, and horizontally via background verification services, etc., that are powered by blockchain. Africa is seeing a lot of traction for the company. The Middle East will also see substantial expansion and acceleration.

Announced during the last quarter, the company has made significant strides around its resident entrepreneur program, which is helping create new platforms, technologies, and IPs for various organizations. Presently, 3i Infotech has three full-time resident entrepreneurs – the first one being in cognitive computing services and advanced AI that is into prescriptive and real-time edge analytics; the second is from the EdTech space and the third is around the cybersecurity operations/SOC space.

Mr. Thompson Gnanam, Managing Director & Global CEO, 3i Infotech Limited said, “The last quarter has been a buoyant one for us, negating much of the past legacy issues. Now, we can manage our cost predictability much better, and we are clear on the cost structures. We will strive for maximum revenue realization of the new orders booked in FY22-23 and the new lines of business are expected to change the revenue/margin mix for us.  As a standalone services company, we will try to be profitable which is the first milestone for us, as we chalk out this way forward plan where we build our own platform and co-exist with services.”

The company reported consolidated revenue of Rs 175.6 Cr in Q4 FY2022 reflecting a quarter-on-quarter growth of 6.0%, and FY2022 revenue of Rs 677 Cr reflecting annual growth of 11.2%. The company shared a strong outlook for FY 22-23 with a confirmed order book of Rs 760 Cr as of exit March 2022 and a Rs 100 Cr new order book target for FY 22-23 with a higher-margin revenue mix of minimum 40/50%.

“This year, our organization structures have been drawn to separate the RUN, GROW and BUILD businesses. We are investing in the GROW business that focuses on a better margin mix and will include new service lines whether it is cloud-first, digital infrastructure management services, AAA, digital testing, digital BPaaS, or KPaaS and we have set it up as separate P/L units. Over a period of time, GROW will replace RUN. We have set optimization targets in RUN to ensure that GROW is funded well to build future lines of business for us. BUILD projects are capitalized and kept separately, as we are creating IPs, products, and platforms and making a balanced investment,” he further added.

 

Key financial highlights

  • EBITDA for the quarter stands at Rs 3.4 Cr, primarily due to margin improvement and cost rationalization. The company has reported positive EBITDA after more than 4 quarters of operating loss
  • Consolidated PAT for the quarter is near break-even (-Rs 3.9 Cr) which is a significant QoQ improvement with a reduction in losses by Rs 18.7 Cr
  • The company reported net cash of Rs 73.4 Cr as of 31st March 2022
  • FY22 America Business has grown by 11.5% to Rs 377.7 Cr from Rs 338.7 Cr in FY21. Similarly, India’s business grew by 16.5% to Rs 209.7 Cr from Rs 180 Cr in FY21
  • From a vertical perspective, the Information Technology vertical is a major contributor to total revenue with a 35.9% revenue share while Banking & Financial Services (BFS) has a 28.5% revenue share in total FY22 revenues
  • 3% of our business comes from top 20 clients and we have been successful in 100% retention of our existing clients in FY22
  • 6% of revenues in FY22 was contributed by the Application-Automation-Analytics (AAA) line of business followed by Infrastructure Management Services (IMS) with a 13.8% revenue share

 

 

Key business updates

  • 3i Infotech has started experiencing positive business growth in their CloudFirst business with Gross Margins of 20+%. Their NuRe cloud solutions have huge global and domestics opportunities for both cloud services as well as cognitive & edge computing
  • The company’s cloud business, with its end-to-end solutions, continues to provide compelling value to its customers at the most competitive benchmarks
  • Platform solutions now offer C-Level intelligence services including enterprise risk management and decision-making intelligence

Over the last two quarters, the company has forged a string of contracts and deals across verticals and geographies. Some of the recent deals include – 3i Infotech’s US subsidiary announcing a strategic investment in Exium, a pioneer in 5G powered Secure Access Services Edge (SASE) solutions; a Digital BPS transformational deal with a leading insurance company in India for Rs 12 cr; an order worth Rs. 10.58 cr across industry verticals with companies including Vishal Mega Mart Private Limited, Dhani Loans, and Services Limited (formerly India bulls Consumer Finance Limited), Amara Raja Batteries Ltd, Aavas Financiers Limited, Erulearning Solutions Private Limited, and Rockman Industries Limited.

 

About 3i Infotech Limited

Headquartered in Mumbai, India, since its inception in 1993, 3i Infotech has been committed to driving business value across multiple industry verticals. 3i Infotech, today, has emerged as a leading name in propelling the current wave of digital transformation initiatives, with deep domain expertise across BFSI, Healthcare, Manufacturing, Retail, and Government sectors. The Company has over 5000 employees in 30 offices across 15 countries and over 1000+ clients in more than 50 countries across 4 continents. With a wide range of IT services, 3i Infotech has successfully transformed the business operations of customers globally. The Company has a very strong foothold and client base in geographies like North America, India, Asia Pacific, Middle East and Africa, the Kingdom of Saudi Arabia, and South Asia.

Website: https://www.3i-infotech.com/