IntraSoft Technologies Limited Announces 56% Growth In Profits For Q1 FY2012

Mumbai, August 11, 2011 - IntraSoft Technologies Ltd (BSE: 533181, NSE: ISFT), owners of one of the largest electronic greetings website http://www.123greetings.com, today announced its unaudited consolidated financial results for the first quarter ended June 30, 2011.

Q1 FY2012 Highlights: (All comparisons are with Q1 FY2011 figures)

• Total income at Rs. 1088 lacs up by 40% from Rs. 778 lacs
• PAT reported at Rs. 153 lacs up by 56% from Rs. 98 lacs

On a quarterly consolidated basis, the company posted a robust income growth of 39.9% from Rs. 777.67 lacs in Q1 2010-11 to Rs. 1088.08 lacs in Q1 2011-12. Profit after tax (PAT) grew by 55.6% from Rs. 98.19 lacs in Q1 2010-11 to Rs. 152.75 lacs in Q1 2011-12.

Commenting on the company’s performance, Mr. Arvind Kajaria, Managing Director, said, "I am pleased with the Year on Year double digit growth in both revenues and profit. The 56% growth in PAT, compared to 14% growth in Q1 of the previous year and 8% in Q4 of the previous year, indicates that the investments made in the previous quarters have started yielding returns. The quarter also witnessed a sustained growth in traffic of the various 123Greetings Websites and value added services."

OPERATIONAL PERFORMANCE HIGHLIGHTS

• 123Greetings Store, the online gifting e-commerce business, witnessed satisfactory growth. During the quarter, a total of 14,340 orders were shipped, averaging approx 159 orders / day, from an active base of 47 vendors.
• 123Greetings Connect, a value added service launched in June last year, saw the total number of registered users at 1,326,122 as on June 30, 2011, a growth of 16%.
• 123Greetings Studio saw the number of registered artists growing by 18%, up from 8,940 to 10,517. A total of 384 new cards were uploaded in the quarter.
• 123Greetings Invites saw a total number of 905 events being created and 5,879 invites being sent out in the quarter.
• The core business of 123Greetings continued to maintain traction and witnessed an addition of 1,371 new cards in the quarter. A new feature ‘Send Another Card’ was introduced in the site to facilitate the users to send more greetings at the click of a button without navigating to another page.
• According to the comScore Media Metrix, 123Greetings.com witnessed a growth of 24% as against a growth of 13% in the entire ecards category index in the month of May 2011. The site saw an influx of 1.8 million visitors. Ecards was the fourth top-gaining category in that period with 17.5 million total numbers of visits to various e-card sites.
• 123Greetings Facebook application also got upgraded in the quarter and got an overwhelming response from the Facebook community. During the quarter 172,217 users sent 511,851 ecards to their friends using the application. As on June 30, 2011, the application had a registered user base of 907,548 users.

"Going forward, we expect growth in traffic and user registrations to remain robust. Encouraged by the performance, we intend to continue investing in our e-commerce and other value added products. We, remain confident of further enhancing our volume growth, profitability despite a potentially subdued macro environment," concluded Mr. Kajaria.

About 123Greetings:

123Greetings is the world's leading online destination for human expressions reaching over 91 million unique users annually. Drawing from its tag line "Giving Life to your Expressions" the service inculcates a sense of personalization that relates to the users on an emotional level. Its offering of over 20,000 greeting cards covers a mix of 3,000 seasonal & everyday categories. Its applications & widgets for social networks & blogs allow users ubiquitous access across multiple devices and platforms.

About IntraSoft Technologies Limited:

IntraSoft Technologies Limited owns and operates http://www.123greetings.com, one of the most visited electronic greeting cards website in the world. The Company operates through its wholly owned subsidiaries in various geographies, which are 123Greetings.com,lnc.(USA), One Two Three Greetings (India) Pvt. Ltd. (India) & 123Greetings (Singapore) Pte Ltd. (Singapore).

For more information please contact:
For Media:
Balakrishna Pillai
Director & CEO
Spin Communiqué
Ph: +91-9820154049
Email: balapillai@spincommunique.com

Harshala Nayak
Media Manager
Spin Communiqué
Ph: +91-9619700161
Email: harshalan@spincommunique.com

Notes:

1. The above results were reviewed by the Audit Committee and approved by the Board of Directors in their respective meeting held on 11th August,2011.
   The above results have been reviewed by the Statutory Auditors of the Company as required under Clause 41 of the Listing Agreement.
2. As per the requirements of AS-17 issued as per Companies (Accounting Standards) Rules, 2006, no disclosure is required as the Company is operating in single business /geographical segment of Internet based delivery of services.
3. The consolidated financial results include the results of the Company's Wholly Owned Subsidiaries :-
       - 123Greetings.com, Inc. (USA)
       - 123Greetings (Singapore) Pte. Ltd. (Singapore)
       - One Two Three Greetings (India) Pvt. Ltd. (India)
4. The position of IPO proceeds and utilisation there of vis-à-vis the 'Objects of Issue' as stated in Prospectus dated March 30, 2010 upto June 30., 2011 is as follows:
   
   1. Funds raised through IPO : 5365.00 Lakhs
   2. IPO Expenses : 524.04 Lakhs
   3. Net proceeds through IPO : 4840.96 Lakhs
   4. Utilisation as per Objects of issue : 1820.89 Lakhs
   5. Balance funds unutilised : 3020.07 Lakhs

   The unutilised funds were invested in debt(income) funds, Mutual Funds,NCDs,ICDs and balance in Company's current bank account

5. There were no investor complaints pending at the beginning of the quarter. Received during the quarter - 1, Settled during the quarter - 1, Pending at the end of the quarter -Nil
6. The Standalone and Consolidated financial results of the Company for the quarter ended 30th June, 2011 are available on the Company's website www.itlindia.com
7. In order to present its financial statements in a more appropriate manner, beginning 01.04.2011, the depreciation method in respect of fixed assets, has been changed from written down value (WDV)to straight line method (SLM) with retrospective effect as per schedule XIV of the Companies Act,1956. Accordingly, depreciation has been recalculated in accordance with SLM from the date the assets were put to use and cumulative effect is amounting to 2,12,30,996 in respect of earlier years.
   A pro rata amount of 53,07,749 has been adjusted with current quarter's depreciation for Q1-FY 2011-12. Due to the above, the depreciation charge for the current quarter is lower by 7,08,810
8. Previous quarter's / year's figures have been regrouped / rearranged whereever considered necessary.