Thread by @mystockedge

How is Intellect Design Arena Accelerating Digital Transformations?

A thread(🧵) (1/23)

The backstory: Intellect is a Digital Financial Technology and Products Company catering to the Banking and Financial services institutions (BFSI) domain. They partner with these institutions to transform their business. (2/23)

They have a profound understanding of these Domains, and they have been working with these Global leaders for over three decades. (3/23)

Intellect has significantly invested in developing differentiated Intellectual Property assets architecturally superior Technologies, Products and Platforms with unparalleled depth and span of functional richness that helps to accelerate their client’s growth and transformation.

They have flexible Business models that suit their customers’ differing investment and risk appetites. Their algorithmic delivery methodology is robust to ensure defect-free, on-time deliveries while being agile and sensitive to the dynamics of their Customers’ priorities. (5/23)

The customers: Retail or Corporate Customers, Central Banks, #Wealth Managers, Private Bankers, Card Issuers, #Brokers, Custodians, Asset Managers. (6/23)

The Business Model: Mainly 3 models. (7/23)

Traditional Product Sale Model: In this model, they license the Product to the Customer for use on-premise. The Customer pays them for Maintenance of the Product during the period of License. (8/23)

They also earn revenues in the Implementation of the Product and for any Customization carried out for the Customer

They also work with some Customers in supporting the Product and the Business throughout the License with the onsite presence of personnel / remote support. (9/23)

Customer-Centric Partnership Model:

They collaborate with the customers as their Strategic Technology partners and work on their Technology/ Business roadmap. (10/23)

As this blueprint is translated to action they take support roles for their Business or Operations transformation agenda they are paid for their services apart from any Intellectual Property licenses that they may grant their clients for use in this transformation journey (11/23)

Cloud deployment/ Subscription based Revenues:

For customers who do not wish to take on the Investment in Technology Infrastructure and the complexity of managing them. (12/23)

They offer their products and platforms on the Cloud deployment model either in a unique hosting arrangement or through an independent Cloud Services provider. (13/23)

They receive revenues through Product licensing; Cloud set up, Hosting, Subscription revenues – either fixed or linked to Customers’ Business metrics. (14/23)

The Leading Edge over Competitors:

In Consumer Banking, their competitors are Mambu, Thought Machine, nCino, Temenos, Oracle Flexcube, Infosys Finacle and TCS Bancs. (15/23)

In Corporate Banking, they have Finastra, Bottomline Technologies, ACI, Reval competing against them, while in Treasury, it’s Finastra, Guava and Finacle. Finally, they compete with Guidewire, Duck Creek, and Carpe Data in Insurance. (16/23)

Why do clients prefer them over their competitors? (17/23)

1. Architectural superiority

2. The depth and breadth of their Functionality

3. Ability to curate solutions specific to a Customer or Geography

4. Their delivery promise

5. Their flexible Business models

6. Reference ability and Recognition (18/23)

Financials: StockEdge Provides a holistic outlook of the Financials of the company. (19/23)

Intellect Design Arena’s net profit increased to Rs.100.85 cr for the 3rd quarter ended December 31, 2021 (Q3FY22) from Rs.80.37 cr in Q3FY21. The Company’s revenue from operations increased 33% to Rs.508 crore, up from Rs.382 crore in the same quarter the previous year. (20/23)

The revenue growth was aided by license revenue. Cash and cash equivalent was Rs.433 cr at the end of the quarter.
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