123Greetings Revenues Grow 13.5% In Q4; Full Year Revs At Rs 43Cr

The revenues and profits of Intrasoft Technologies Ltd, which owns and operates 123Greetings, are plateauing or at best growing at a modest double digits if the latest numbers are any indication. The Kolkata-based e-greetings company, backed by venture capital firm Intel Capital, has posted a 13.1 per cent growth in the consolidated income to Rs 10.57 crore in Q4 2010-11 from Rs. 9.35 crore during the same quarter last year. The profit after tax (PAT) grew by 8.3 per cent to Rs. 2.75 crore in Q4 2010-11 from Rs. 2.54 crore in Q4 2009-10.

The consolidated financials include the numbers of the subsidiaries in the US and Singapore besides that of the Indian parent which is listed in Bombay Stcok Exchange and National Stock Exchange. The company had in an IPO last year raised Rs 53.65 crore.

On a stand-alone basis (non-consolidated), the company registered revenues of Rs 5.3 crore in Q4 2010-11, while the net profits were Rs 2.71 crore.

As for the full year numbers, the company's total income on a consolidated basis went up 47 per cent from Rs. 29.20 crore in 2009-2010 to Rs 42.86 crore in 2010-11. The PAT was up 15 per cent from Rs. 8.83 crore to Rs. 10.13 crore.

The company had spent Rs 16.47 crore in product and content development in 2010-11 compared to Rs 5.37 crore in the previous year, which is a substantial jump. The sales and marketing expenses also doubled from Rs 4.5 crore in 2009-10 to Rs 8 crore in 2010-11.

While expressing satisfaction at the performance of the company, Arvind Kajaria, the Managing Director, stated that the year had seen the launch of three new features - 123Greetings Connect, 123Greetings Studio and 123Greetings Invites. They had also introduced new features like instant 'Thank You' and 'Quick Send.' The company also added new 5,650 cards on the 123Greetings website.

The company, founded during the early dotcom rush in 1997 by entrepreneur Arvind Kajaria, is currently facing competition from websites like Facebook as users are now connecting with friends through social networks.

The company's stock is trading at around Rs. 69.50 on both NSE and BSE at the time of publishing this article, while the 52-week high was Rs 130.90. It makes money through advertisements.