For immediate release i-flex posts 51% growth in revenues YoY for the quarter ended June 2006 (As per Consolidated US GAAP) Financials at a glance for the quarter ended June 2006 US GAAP Consolidated Revenues PBT Net Income Indian GAAP Consolidated Revenues PBT Net Income Rs. 407.5 crore (+51% YoY) Rs. 50 crore (+458% YoY) Rs. 41.5 crore (+607% YoY) Rs. 403.3 crore (+47% YoY) Rs. 44.7 crore (+134% YoY) Rs. 35.1 crore (+132% YoY) Highlights of the Quarter (financials as per US GAAP) Revenue grows 51% YoY to Rs 407.5 crore. As compared to quarterly average for the last financial year, the revenues in the quarter show 10% growth. Net income for the quarter stands at Rs 41.5 crore. Signed 22 new customers on the strength of continued market opportunities Gross addition of 553 employees in the quarter (excluding KPO business - Equinox), with the total staff strength increasing to 6484. The total staff strength of the group inclusive of KPO business increases to 7,101 an increase of 29% over the period ended June 2005. Solutions Portfolio Products Business Revenues post 75% increase YoY; FLEXCUBE winning momentum continues with 11 new client signings Financial Information Network & Operations, India, a new venture of ICICI Bank, India, selects FLEXCUBE for its core operations A global European bank selects FLEXCUBE for its foray in Japan Hong Kong Shanghai Banking Corporation implements FLEXCUBE Investor Services for its institutional fund services business across Asia and Middle East Reveleus Basel II continues its winning innings, signing three deals in the quarter. Page 1 of 5
Services Business Revenues post 31% YoY and 5% QoQ increase for the quarter; Signed 5 new relationships in the quarter, including one major global bank in US While the revenues from Citibank have grown in absolute terms, the share of non-citi revenue continues to grow and stands at 46%. Awards & Accolades Equinox, the business process outsourcing arm of i-flex Solutions, selected in the Leadership Category of The Global Outsourcing 100 by the International Association of Outsourcing Professionals (IAOP). i-flex/equinox also wins a pride of place in the 50 Best Managed Global outsourcing vendors in a survey conducted by Brown-Wilson Group for The Black Book of Outsourcing, covering 872 Outsourcing Vendors in 63 countries. FLEXCUBE was ranked highest both on advanced technology and breadth of functionality by Celent in its recent research report on Global Core Banking Solution vendors. Rajesh Hukku, Chairman & Managing Director wins International Stevie Award in the category of Best Chairman. Reveleus is Highly Commended for its Compliance Initiative Innovation in the Banker Technology Awards 2006. Celent ranks the Reveleus Operational Risk solution amongst the top 3 solutions in the world in its category. Mumbai, July 28, 2006: The Board of Directors of limited, a leading provider of IT solutions to the global financial services industry, has approved the results for the quarter ended June 3O, 2006. Speaking on the occasion, Rajesh Hukku, Chairman & Managing Director said, Our comprehensive solutions portfolio is helping financial institutions worldwide gain leadership in their business. We are delighted with the top ratings that the industry analysts such as Gartner, Forrester and Celent have given to FLEXCUBE and REVELEUS in the recent past; and a consistent streak of top tier wins for our products and services in the US, Europe and Japan.. R. Ravisankar, CEO, International Operations and Business Development added, We now have the most comprehensive portfolio of solutions to help financial institutions meet the challenges of a highly competitive environment and we continue to see rapid growth across the entire portfolio. Commenting on the financials Deepak Ghaisas, CEO, India operations & CFO said, We are investing in infrastructure aggressively to meet market Page 2 of 5
opportunities. This strategy is aimed at leveraging scale to help optimize costs while giving us the required flexibility to quickly expand operations. Financial Performance Financial Results for the quarter ending June 30, 2006 (All the amounts in Rs. crore) Consolidated Indian GAAP: i-flex posted a top line growth of 47% YoY with revenue for the quarter ended June 30, 2006 at Rs. 403 crore as compared to Rs. 274 crore for the corresponding quarter during the previous year. The net income for the quarter stood at Rs. 35.1 Crore as compared to Rs. 15.2 Crore in the corresponding quarter in the previous year. Consolidated Income statement ltd and its subsidiaries Quarter Ended Jun-06 Jun-05 Mar-06 Revenues 403.3 273.9 470.5 Cost of revenues (excluding depreciation & 251.1 167.2 215.5 amortization Gross Profit 152.2 106.7 255.0 Selling & Marketing Expenses 51.5 43.2 56.6 General & Administrative Expenses 48.7 38.9 40.4 Depreciation & amortization 15.0 10.3 14.2 Income from operations 37.0 14.3 143.9 Profit/(loss) on Equity investment 0.4 (0.2) (0.15) Interest and Other Income /(expense) 7.8 5.1 11.6 Income before provision for income taxes 45.2 19.2 155.3 Provision for income taxes 10.1 3.97 15.3 Net Income 35.1 15.2 140.0 Any totaling differences due to rounding Page 3 of 5
Consolidated US GAAP: i-flex posted a top line growth of 51% with revenue for the quarter ended June 30, 2006 at Rs. 407.5 crore as compared to Rs. 270.1 crore for the corresponding quarter during the previous year. The net income for the quarter stood at Rs. 41.5 Crore as compared to Rs. 5.9 Crore in the corresponding quarter in the previous year. ltd and its subsidiaries Quarter Ended Jun-06 Jun-05 Mar-06 Revenues 407.5 270.1 457.7 Cost of revenues (excluding depreciation & 260.5 174.4 227.9 amortization Gross Profit 147.0 95.7 229.8 Selling & Marketing Expenses 51.9 43.3 56.6 General & Administrative Expenses 49.3 38.9 41.9 Depreciation & amortization 16.0 11.3 15.1 Income from operations 29.8 2.2 116.1 Profit/(Loss) on Equity investments 0.2 (0.3) 0.1 Interest Income and Other income/expense 20.0 7.0 10.5 Income before provision for income taxes 50.0 8.9 126.7 Provision for income taxes 8.5 3.1 9.8 Net Income 41.5 5.8 116.9 Any totaling differences due to rounding About i-flex solutions (Reuters: IFLX.BO & IFLX.NS) is a world leader in providing IT solutions to the financial services industry. i-flex has serviced over 660 customers in more than 120 countries. i-flex s range of products and customized services enable financial institutions to cut costs, respond rapidly to market needs, enhance customer service levels and mitigate risk. i-flex and FLEXCUBE are registered trademarks of. Reveleus, Daybreak and PrimeSourcing are trademarks of and are registered in several countries. All company and product names are trademarks of the respective companies with which they are associated. Page 4 of 5
For information, please visit: www.iflexsolutions.com For more information on the press release, please contact: Eapen Thomas Phone: +91-22-2823 5190, ext. 5132 Fax: +91-22-2836 3140 E-mail: eapen.thomas@iflexsolutions.com Ramya B S Tel: +91 80 2208 7340 Fax: + 91 80 2534 5090 / 5666 5271 bs.ramya@iflexsolutions.com Shilpa Harsh Adfactors PR Pvt. Ltd. Tel: +91 80 41133061 Mobile: +91 9986359063 shilpah@adfactorspr.com APAC Parvez Ahmad Tel: +65-6238 1900, ext. 212 Fax: +65-6238 1282 E-mail: parvez.ahmad@iflexsolutions.com EUROPE Louis Jude Tel: +91-80-5759 7330 Fax: +91-80-2534 5090 / 5666 5271 jude.louis@iflexsolutions.com EUROPE Mallika Basu/Tom Nutt The Communication Group plc +44 20 7630 1411 mbasu@thecommunicationgroup.co.uk tnutt@thecommunicationgroup.co.uk NORTH AMERICA Sunil Robert Tel: +1-646-619-5482 Mobile: +1-646-642-3690 sunil.robert@iflexsolutions.com Page 5 of 5