Mumbai, January 29, 2025 – 3i Infotech Limited (BSE: 532628 | NSE: 3IINFOLTD) has announced its financial results for the third quarter of the fiscal year 2024-25. The company reported a total revenue of ₹181.41 crore and a net profit of ₹40.6 crore, reflecting a turnaround in its financial performance.
Financial Highlights
Consolidated Q3 FY25 Performance:
Revenue from Operations: ₹181.41 crore.
Total Income: ₹185.49 crore.
EBITDA: ₹69.1 crore.
Profit Before Tax (PBT): ₹41.85 crore.
Net Profit: ₹40.6 crore.
Earnings Per Share (EPS): ₹2.39 per share.
Total Comprehensive Income: ₹1.04 crore.
Key Observations:
The company's foreign exchange gains of ₹38.86 crore significantly contributed to its profitability.
The total expenses stood at ₹182.50 crore, with employee benefits costs being the most significant component at ₹135.97 crore.
Finance costs reduced to ₹1.61 crore, compared to ₹2.36 crore in the previous quarter.
Strategic Decisions and Corporate Actions
Senior Management Appointments
Vaibhav Somani has been appointed as Acting Chief Financial Officer (CFO). A chartered accountant by profession, Somani has extensive experience in financial management, compliance, and governance.
Navneesh Sarin has been appointed as Senior Management Personnel. With over 30 years of experience in global operations, Sarin has worked with companies such as GE Capital, Bank of America, and Genpact.
Subsidiary Liquidations
3i Infotech Saudi Arabia LLC: The company has decided to liquidate this subsidiary, which contributed ₹36.25 crore (4.45%) of the company’s total turnover.
Nure Infotech Solutions Pte. Ltd., Singapore: This subsidiary, inactive since its incorporation, will also be liquidated.
The ‘Others’ category incurred a loss of ₹5.02 crore.
Liquidity and Cash Flow Position
Total Cash & Equivalents: ₹93.58 crore, up from ₹83.59 crore in Q2 FY25.
Net Operating Cash Flow: ₹17.94 crore.
Capex for Q3 FY25: ₹4.66 crore.
Market Outlook & Future Strategy
Growth Drivers:
Robust demand for cloud-based automation solutions.
Expansion of BPaaS (Business Process as a Service) offerings.
Increased adoption of AI-driven analytics.
Challenges & Risk Factors:
The company faces legacy financial challenges, including outstanding liabilities and receivables.
The company's international subsidiaries in the UK, Saudi Arabia, and Thailand face ongoing financial uncertainties.
Stock Market Reaction
The company’s turnaround in profitability, coupled with a substantial foreign exchange gain, is expected to drive positive investor sentiment. However, concerns over subsidiary liquidations and historical liabilities could affect the long-term market outlook.
Final Takeaway
3i Infotech’s Q3 FY25 results reflect a stabilizing business model with substantial revenue and improved profitability. The company's decision to streamline operations by liquidating non-core subsidiaries and appointing key leadership personnel signals a focus on long-term strategic growth. As the company continues to execute its digital transformation strategy, investors will closely watch its cost rationalization measures and expansion into high-margin service lines.