123Greetings' revenues shoot up 75% YoY, PAT up 5.6%

14 May, 2012

Intrasoft Technologies Ltd, which runs the e-greeting site 123greetings.com and is one of two BSE listed Internet firms in India (the other is Naukri.com owner Info Edge India) reported 75 per cent increase in total income to Rs 18.5 crore in the fourth quarter ended March 31, 2012 over the year ago period. The firm which has also diversified into e-commerce business, however, saw modest rise in net profit to Rs 2.9 crore, up 5.6 per cent from Q4 of FY11.

On a sequential basis, the firm saw revenues shrink 22 per cent and also decline in net profit. But the Q3 numbers are skewed up with a seasonal impact due to the new year and festival season which props up its financial numbers every year, and not comparable on a like-to-like basis. A majority of the website's traffic and revenue is generated between October and April.

Intrasoft Technologies scrip rose 4.8 per cent to close at Rs 52.4 a share on the BSE in a weak Mumbai market on Monday.

123Greetings has a core electronic greeting card business, a value-added service called 123Greetings Connect and a studio for artists. It also runs 123Greetings Invites and a Facebook app for inviting friends over for a party. But the company is slowly evolving into an e-commerce site, selling perfumes, skin care products, home appliances, furniture and even bicycles through the website.

Arvind Kajaria, MD, IntraSoft Technologies Limited said, "In direct contrast to the global cues, the company, has posted substantial growth. The discerning investments made in the past, has helped the company to grow significantly. Newer markets are also being penetrated and in the existing markets we continue to consolidate our position."

Last quarter, the company's e-commerce store, 123Greetings Store has shipped 32,345 orders (compared to 57,042 orders in the peak Q3 period) and the number of vendors grew from 162 to 205 sequentially. The 123Greetings 'Connect' feature that enables users to import and store unlimited contacts with birthdates on cloud has risen from 1.62 million (December 2011) to 1.73 million (March 2012).

The 123Greetings 'Invites' saw the creation of 745 events while 123Greetings 'Studio', a creative platform which launched last year, has increased user base by 11 per cent during the quarter to 15.461. The registered user base of 123Greetings Facebook app increased from 1,001,500 to 1,037,650, and some, 771,068 cards were sent by 225,192 users during the last quarter.

The Kolkata-based e-greetings company is backed by venture capital firm Intel Capital and had raised Rs 53.65 crore in an IPO during 2010. The balanced unutilised fund from the proceeds, which stood at Rs 19.91 crore as of December 31, 2011, stands at Rs 7.37 crore as of March 31, 2012.