Intellect Design Arena

Intellect design arena Q4 FY23 Concall Notes
It was relatively long investor call for intellect around 135 min, initial 90 min was spend by 3 business verticals explaining fy23 business growth and future growth potential. Will briefly summarize my understanding first/

Retail Banking
Overall retail banking market grows at 8%, SaaS business grows at 34%. SaaS business to capture 30% market share by 2029, e-Mach.ai is well positioned to capitalize this.
iKredit 360 platform launched in India in Feb 2023 – pay as you grow model
Another launch event in UK for open finance platform in collaboration with AWS, targeting UK-Europe market.
2 case studies on iTurmeric implementation with reserve bank and SME market place for leading private bank (?).
Temenos and thought machine are main competitor in european market, sees large opportunity space here.
Intellect AI
3 main business lines – Insurance, Wealth & ESG
Comprehensive underwriting ecosystem in insurance, sees lot of traction in US market.
Focus to empower relationship mangers in wealth business – looking forward to launch wealthforce in key markets
iESG – explainable AI to improve corporate risk analysis. Chosen by worlds largest sovereign wealth fund (?).
iGTB
Market leadership in transaction banking. IGTB revenue to be double by 2026.
working on market place solution for banks in collaboration with Microsoft & accenture

Q&A
SaaS revenue buildup slower due to backloaded nature (18-24 months), GEM up for renewal in 2024 – can be a negative overhang for intellect in short term.
Cash generation lower in FY23 due to eMach. ai investment. Will be better in FY24.
SaaS offerings focused on specific application, magic submission, magic invoice, iESG etc
each item could be 50 – 100m $ business
Stick to medium term trajectory of 20% top line growth and 25-30% margin. No guidance for short term. No plans to diversify from BFSI sector for now.