New strategy
Under the new guard, 3i Infotech embarked on a ‘Reorganisation Scheme’ initiative in an attempt to ‘right-size the company’s balance sheet and to enhance shareholder value’, said Balakrishnan in the financial results statement released in November 2012. The results for the quarter ending 30th September 2012, showed revenue of $60.6 million and a net loss of $34.9 million. The reorganisation programme included cost-cutting across the board, and in the six months ending December 2012, the vendor claimed it managed to reduce costs by nearly seven per cent. The focus of 3i Infotech had changed too. Rather than chasing global expansion ambitions, the vendor now aimed to be a ‘niche player with a clear focus’, according to Balakrishnan, and would concentrate efforts ‘on a lesser number of clients with higher revenues’. He also emphasised the need to convince the vendor’s clients that ‘the past is behind us and we are here to stay’. Part of this was a decision to focus on a subset of its product
offerings. In focus was Kastle Lending; not in focus was Kastle Core Banking System. The latter would be maintained and was still seen as potentially of relevance to small and mid-tier banks but Balakrishnan said ‘we will not be investing in it big time’ and, in the current economic climate, ‘we don’t see a great potential for core banking software’.
By this stage (mid-2013), between 35 and 40 per cent of 3i Infotech’s
revenues were product-related, five per cent was BPO, with the rest from services. The bulk comes from financial services. Around 40 per cent of revenue was from ‘advanced markets’, said Attra, with the aim to move this to 60 per cent. It had around 9200 staff, mostly in India, down from around 11,000. Along with Kastle Lending, 3i Infotech is majoring on the RhymeSight asset management system, its ERP and insurance systems (with around 700 and 140 installations, respectively), its mutual fund and investment systems, and anti-money laundering offering. It would seek to provide end-to-end solutions around these, said Attra, including application development and testing, as well as seeking cross-marketing opportunities within the existing client bases. RhymeSight was perhaps a surprise as an ‘in focus’ system, given that it is relatively old, with a proprietary database, and UK- centric, having never lived up to 3i Infotech’s hopes of taking it to a wider geographical audience after acquiring Rhyme Systems in 2006. It would be enhanced in the next twelve to 15 months, said Balakrishnan, and would be pushed in other parts of Europe,
68
including Switzerland, plus the Middle East and Africa. Among the systems that are no longer in focus is also Kastle
Treasury, which has around 40 users but with these mainly in the supplier’s domestic market and with weak sales of late (just one new-name win in 2012). No more acquisitions were on the cards, confirmed Attra, and the company would look to disinvest some more parts, although he declined to name these. The strategy also included partnering with other companies to implement its systems, with discussions underway with a number of large system integrators but no announcements at this time. There was no known activity in terms of sales and new customers in the Kastle space in 2013/ 2014. However, 2015 saw 3i Infotech win a deal with Saudi Home Loans, Riyadh based Islamic mortgage company, for the implementation of Kastle Universal Lending, Kastle Treasury and Orion ERP.
3i infotech added another client in 2017 in Saudi Arabia, where the company continues to have good traction. Gulf Lifting Financial Leasing Company (GLFL), a subsidiary of Kanoo Group of Companies, implemented Kastle® Universal Lending Solution and integrated financial suite to streamline its business processes as well as automate the end to end operations right from origination to collection. With this implementation, GLFL adds on functionality to manage on-boarding and profiling of new customers, limit management and credit analysis along with handling its enterprise financial accounting and reporting requirements. Results for 2017 showed that the restructuring the company went
through was on course with the company announcing an operating profit after years of losses. The shedding of various businesses like Rhyme Systems in the UK had an effect on the revenues which have been decreasing in the last few years.
Islamic Report
www.ibsintelligence.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164 |
Page 165 |
Page 166 |
Page 167 |
Page 168 |
Page 169 |
Page 170 |
Page 171 |
Page 172 |
Page 173 |
Page 174 |
Page 175 |
Page 176 |
Page 177 |
Page 178 |
Page 179 |
Page 180 |
Page 181 |
Page 182 |
Page 183 |
Page 184 |
Page 185 |
Page 186 |
Page 187 |
Page 188 |
Page 189 |
Page 190 |
Page 191 |
Page 192 |
Page 193 |
Page 194 |
Page 195 |
Page 196 |
Page 197 |
Page 198 |
Page 199 |
Page 200 |
Page 201 |
Page 202 |
Page 203 |
Page 204 |
Page 205 |
Page 206 |
Page 207 |
Page 208 |
Page 209 |
Page 210 |
Page 211 |
Page 212 |
Page 213 |
Page 214 |
Page 215 |
Page 216 |
Page 217 |
Page 218 |
Page 219 |
Page 220 |
Page 221 |
Page 222 |
Page 223 |
Page 224 |
Page 225 |
Page 226 |
Page 227 |
Page 228 |
Page 229 |
Page 230 |
Page 231 |
Page 232 |
Page 233 |
Page 234 |
Page 235 |
Page 236 |
Page 237 |
Page 238 |
Page 239 |
Page 240 |
Page 241 |
Page 242 |
Page 243 |
Page 244 |
Page 245 |
Page 246 |
Page 247 |
Page 248 |
Page 249 |
Page 250 |
Page 251 |
Page 252 |
Page 253 |
Page 254 |
Page 255 |
Page 256 |
Page 257 |
Page 258 |
Page 259 |
Page 260 |
Page 261 |
Page 262 |
Page 263 |
Page 264 |
Page 265 |
Page 266
