Global Player Comparisons
Operating Leverage
- •Cost haven’t reduced in absolute terms, overall cost base have expanded, but relative to growth in Revenues, these costs are not expanding that fast.
- •Operating leverage is playing out not because of savings in costs but because of the acceleration in revenues.
- •Only iGTB and iGCB has been well established and One more entire segment of the business needs to be improved.
- •Overall R&D for Top players are at Minimum 15%
Gross Margin
Due to large number of products and Expansion of customers that Intellect has tried to bring into the market overtime.
The initial years of any product the gross margins are low, reason being that one cannot expect to charge premium pricing for a new product, it is only overtime as the product establishes itself that a company can charge higher for License and since AMC is based on License value, lower Licence value also results in lower AMC.
Risk – Guidance Missed
- • It becomes very difficult for market to believe in what the management is saying and even when numbers do come out well, it becomes difficult for market to believe the sustainability of such numbers.
- •Except 4-5 Products, Other Products are yet to still reach a scale and any changes in technology can be a risk for their positioning in market.
- •Moving to Digital and Buy vs Build has been a major driving force of high growth in last couple of years . Slowness in adoption rate can put pressure on growth and margins given multiple products are in investment phase and are being capitalized on balance sheet.
Management Details
Mr. Arun JAIN (CHAIRMAN & MD) – Founder of Polaris Group
- •Started journey by setting up Nucleus
- •Software Workshop in 1986
- •Chairperson IIT Ranchi
- •Electrical Engineering from the Delhi College
- •Dronacharya Award 2019 by TiECON Chennai
- •Won Several other awards
Manish Maakan – iGTB(Intellect Global Transaction Banking)
- •Past experience in Whirlpool & General Electric
- •Financial technologies for Banks
- •Helps Banks in providing solution like Cash Management, Cashflow management, Banking transaction, Payments, Collections & Receivables, Liquidity Management, etc.
- •Over 175 product installations in over 70 banks
- •Serving clients in 85 countries
Rajesh Saxena – iGCB
- • He has Expertise in Retail Banking
- • Prior experience of working in Citi Bank & CEO of American Express, India
- • Provides Retail Banking Solutions like CBX Retail, Digital Core, Digital lending, Digital Wealth & Quantum Central Banking
- • Target Market is Europe
- • Product line development strategy
Banesh Prabhu – iSEEC
- •Experience of 23 years with Citigroup,
- •American Express and Siam Commercial Bank, Chartered Accountant
- •Provides solutions to insurance Companies
- •Products like CBX-I helps clients to integrate everything
- at one platform
Please provide me your Feedback to improve Myself.
Read my Full Analysis on : Intellect Design Arena (SaaS – Operative Leverage Makes it attractive)
To connect with me Twitter ID: https://twitter.com/siddhu03773123
MapmyIndia: MaymyIndia (C.E Info systems) – by Mr. Market (Sidd)
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