Flash Focus: Fast Facts For Smart Investors

I have taken some shares of 3i Infotech Ltd (Rs.32.67), T: Rs.52, SL: Rs.31 (Strict SL). 

Overview: 3i Infotech Ltd. is an Indian IT services company that operates globally, providing a wide range of services to clients in various industries. With a strong presence in India, the United States, Europe, the Middle East, Africa, and the Asia-Pacific region, the company has been experiencing steady growth and expansion. 

Strategic Partnerships and Contracts: 3i Infotech has been actively pursuing strategic partnerships to enhance its offerings and expand its market reach. 

A notable partnership was formed with InsureMO, a leading Insurance Middleware Platform. This collaboration is expected to bring several benefits to InsureMO customers, including reduced operational costs, faster product launches, and efficient DevOps processes. Photo: 3i Infotech Ltd.

Following the InsureMO partnership, 3i Infotech secured a contract from Ujjivan Small Finance Bank to develop end-user support services. This five-year contract, valued at Rs 396 million, represents a significant addition to the company's revenue stream.

Focus on NuRe: 3i Infotech is strategically focusing on building its value brand business, NuRe, a wholly owned subsidiary. NuRe offers various products, including NuRe CloudFirst for cloud-based solutions, NuRe Edge for 5G services, and NuRe Desk for remote work solutions. 

The company's recent partnership with RailTel to launch NuRe Bharat Network further expands its reach, enabling advertisers to connect with millions of daily users through the RailTel Super App.

At the end last year, the company launched NuRe Bharat Network in partnership with RailTel. This facility has enabled advertisers to connect with 1.8 million daily users through 3i Infotech's RailTel Super App. Moreover, 3i Infotech also offers free WiFi services across the railway network.

Hence, as the Indian government adds more high-speed corridors and expands its rail network, 3i Infotech could generate some additional revenues from the WiFi opportunity.

Recognition: In January, 2024 there was a media report which said that 3i Infotech Ltd  has been recognised as a Representative Vendor in the 2023 Gartner Market Guide for Higher Education Student Information Systems.

This acknowledgment underscored the success of their NuRe Campus EdTech initiative, a cutting-edge cloud-based platform designed to streamline and automate all aspects of university operations.

From admissions to examinations, NuRe Campus offers a comprehensive solution that has garnered praise as India's premier university management system. This achievement solidified 3i Infotech's position as a leading player in the educational SaaS landscape.

Financials: The Net Sales were at Rs.179.75 crore in June 2024 down 7.53% from Rs. 194.38 crore in June 2023. 

Net Sales were at Rs.91.83 crore in March 2024 quarter. So, sequentially, there was a marked improvement in sales figures.

Quarterly Net Loss was at Rs.8.53 crore in June 2024 down 45.29% from Rs.15.59 crore in June 2023. 

Incidentally, the Quarterly Net Loss was at Rs.45.64 crore in March 2024 quarter. So, both sequentially and on Y - o - Y basis, so there was positivity in this front too. 

EBITDA was negative at Rs.40.85 crore in March 2024 quarter. However, EBITDA stood at Rs. 2.91 crore in June 2024 quarter.

Growth Aspirations: 3i Infotech has set ambitious growth targets, aiming to achieve organic revenue of US$ 1 billion by 2030. With its expanding market presence, strategic partnerships, and focus on innovative solutions, the company is well-positioned to achieve its goals.

Conclusion: 3i Infotech Ltd. is a dynamic IT services company that is making strides in the industry. With a focus on innovation, strategic partnerships, and global expansion, the company is well-positioned to capitalize on emerging opportunities and achieve its long-term objectives.