Intrasoft (123Greetings) Net Profit Up 55.1% Year-On-Year

BSE-listed Intrasoft Technologies Ltd, which runs the online greeting card website 123greetings.com, has reported 55.1 per cent rise in consolidated net profit for the quarter ended June, 2011, at Rs 1.52 crore, up from Rs 0.98 crore in the same quarter last fiscal.

The Kolkata-based e-greetings company, backed by venture capital firm Intel Capital, has registered a total consolidated income of Rs 10.88 crore in the quarter, a rise of 40 per cent annually. Total expenditure has risen to Rs 9.95 crore in the quarter and basic EPS before extraordinary items in the period stands at Rs 1.04.

Consolidated financials include the subsidiaries 123Greetings.com Inc. (USA), 123Greetings Singapore Pte Ltd and One Two Three Greetings India Pvt Ltd. The company had also raised Rs 53.65 crore in an IPO last year.

Managing director Arvind Kajaria said, "The growth in PAT, compared to 14 per cent growth in Q1 of the previous year and 8 per cent in Q4 of the previous year, indicates that the investments made in the previous quarters have started yielding returns. The quarter also witnessed sustained growth in traffic to various 123Greetings Websites and also for value-added services."

From April 1, 2011, the company changed its depreciation method with respect to fixed assets to straight line method and depreciation was recalculated to Rs 2.12 crore. A pro-rata amount of Rs 53.07 crore was adjusted with the current quarter's depreciation and hence, the depreciation charge is lower by Rs 7.08 lakh, the company said in a release to the BSE.

On a standalone basis, Intrasoft has posted 44.9 per cent rise in net profit to Rs 1.48 crore for the quarter ended June, 2011. Standalone net income has risen to Rs 3.93 crore, representing 86.6 per cent rise year-on-year while expenditure has risen to Rs 3.07 crore for the quarter ended June, 2011. The basic EPS before extraordinary items for the period stands at Rs 1.01, as compared to Rs 0.71 in the same period in the last fiscal.

During the quarter, the website has witnessed a total of 14,340 orders being shipped, with an average of 159 orders per day, from an active base of 47 vendors. The core electronic greetings business continues to grow with 1,371 new cards being added in the quarter. The site has also seen an influx of 1.8 million visitors.

Its value-added service 123Greetings Connect now has 1.32 million registered users, representing 16 per cent annual growth. Intrasoft also has a studio for artists, which now has 10,517 registered artists and has seen a total of 384 new cards being uploaded in the quarter.

Kajaria has told Techcircle.in that 'events' is another key area for the company when it comes to electronic invites and cards. Called 123Greetings Invites, the service has recorded 905 events and 5,879 invites have been sent out in the quarter. It is also entering the social media space with a Facebook app. During the quarter, a total of 172,217 users have sent 511,851 e-cards to their friends, using this application. As of June 30, 2011, the application has a registered user base of 907,548. Now, the company will continue to invest in e-commerce and other value-added products.