3i Infotech Limited, a global Information Technology company, committed to accelerating business transformation; during their Q3 FY22 earnings call announced a series of initiatives, one of which includes their plan to setup COEs (Center of Excellence) across India and global markets in the upcoming quarters. The company has an upcoming COE and Lab setup planned in collaboration with a leading research park in India focussed on 5G and cognitive computing. They will also look to expand these COEs across Tier-3 cities. The company is investing in insurance COE to offer end-to-end solution on cloud platform and will also build COEs for Credit Union, Mortgage and Capital Markets.
Post the recent strategic alliance signed with MDEC Malaysia to launch the Oracle-powered NuRe 3i+ services for mid-market & SMB, 3i Infotech will further partner with various government bodies to generate employment and work on skill development. One of the other strategic initiatives which is operational, is around creating a Resident Entrepreneur Program in the fields of cognitive computing services and education technology. They also have a white labelled start-up accelerator program that is active with SD WAN/SASE technologies and blockchain powered – video content lifecycle management.
Mr. Thompson Gnanam, Managing Director & Global CEO, 3i Infotech Limited,said“We want to assure all our stakeholders that the company is very much on a growth trajectory and the coming quarters would reflect the same. Post the carve out last year, the company has been steadily solving legacy related issues and trying to build a more robust foundation by proactively provisioning slow moving debtors that will be reduced aggressively by the year-end. With regards to the results which show increase in costs and expenses, it is important to understand that the investments of GROW and BUILD are happening from the same RUN P/L and going forward build projects of capital nature that would be capitalized by year-end as they will be creating products and platforms. The GROW business will be the new services business which will replace RUN and will be tracked as a separate P/L. This will ensure that you see a holistic view of the results, which is not the case presently, and appreciate the growth that we are able to successfully deliver quarter on quarter.”
On the Q3 FY22 results announced, the EBITDA has seen an improvement by 9.4 Cr, primarily due to cost optimization and the normalized EBIDTA is positive for 9M FY22. A growth outlook of 10% annually is projected with one-time cost of 9.6 Cr being recorded as ‘exceptional item’ as part of FCCB early redemption. There has been an overall interest reduction due to long term debts being paid off and reduction in funded limits utilization. The GA cost optimization/rationalization through digital transformation has led to 10% cost reduction.