Intellect Design Arena Ltd

Dear Shareholders,

I am pleased to share this report for FY25, even as we are going through the most exciting phase of our journey.

The eMACH.ai Phenomenon

Over the last two years, I have been sharing with you about the eMACH.ai journey. eMACH.ai is based on First Principles Thinking that, at its heart, seeks to simplify the financial space and establishes an architecture that is composable - being microservices led, fosters an open ecosystem through standardised APIs which are connects that wire multiple applications that a customer may choose, supports deployment in multiple variants of the cloud and empowers the customers with the choice of owning the experience space while leveraging the richness of functionality, robustness of an enterprise grade platform and nuanced governance models that it offers. The composability was further amplified by our no/low code iTurmeric platform that comprehensively addressed the six dimensions of application development.

Apart from being the delight of the architects and technologists owing to the powerful propositions articulated above, the platforms and technologies also delivered impactful business value – through enhanced agility and therefore faster response to market needs, higher operational efficiencies, ability to leverage a larger financial ecosystem through seamless integrations, preserve the organisational knowledge that is vested in historical data, stronger governance processes and the ability to navigate to current set of technologies with minimised risk and a proven implementation path – all with the least total cost of ownership.

FY25 witnessed a stronger and widespread adoption of our Innovative technologies, by global leaders across geographies, building on the success in FY24. We witnessed 40+ deal wins where we were chosen to partner with our customers in their digital transformation journeys and enabled 50+ such transformations. Numbers apart, the depth and complexity of domain spaces and business challenges, which we have been chosen to address, as well as the rigour of the evaluation that preceded are strong endorsements to both our technological and domain expertise. As in the past, these were also reasserted in the analyst ratings and leadership table rankings.

Purple Fabric – Open Business Impact AI

The most exciting part of FY25 is the launch of Purple Fabric – our Open Business Impact AI platform. As outlined in prior year communications, our investments in the AI space are almost a decade old now, with the setting up of the research labs in the US. Our initial applications focused on the P&C (Property & Casualty) insurance space, where we equipped the underwriters with our Magic Submission, Xponent platforms for faster, sharper and well-informed quotes with significantly reduced turnaround times. Our customers include the leading P&C logos in the US. Expanding further, we had launched the Accounts Payables eXchange (APX) for payables automation and entered the wealth management space with our ESG Edge platform for one of the largest Sovereign Wealth Funds.

Building further on our research and customer experiences and leveraging the GenAI models that subsequently came in, we launched Purple Fabric. The design is again guided by our First Principles Thinking – commencing from principles of human intelligence and adapting AI to augment human potential. Given our pedigree with the mission critical financial services space, we recognised the significance of the key role of enterprise knowledge in delivering business value and the need to differentiate enterprise grade platforms from disjoint, one-off AI initiatives with proper governance, security and implementation of responsible, explainable AI. This led to the evolution of four technologies – Enterprise Knowledge Garden (EKG), Enterprise Digital Experts (EDE), Enterprise Governance (PF Govern) and finally the unique Model Optimisation Hub (PF MOH), that enables the customer to deploy the most suited Model for each purpose, evaluated against cost, speed, accuracy and throughput. With 68 ready to deploy digital experts, flexibility in choice of deployment model and a partner ecosystem to support any further builds, Purple Fabric would democratise enterprise AI with quantifiable business outcomes.

I am excited about the potential that Purple Fabric has and together, eMACH.ai offers truly a compelling proposition to our customers to leverage the best in class technology in furthering their business objectives. I look forward to sharing our success stories as we progress across quarters.

Market Expansion

In FY25, we also assumed responsibility for the digital banking operations of Central 1, a market leading technology provider in Canada. We are happy to onboard the Central 1 team as well as the 170+ credit unions that are on this platform and are excited to be the partner in their digital transformation journey. This also significantly strengthens our presence in Canada where we are partners for other leading banks and opens up tremendous market potential.

We also invested in GlobalLinker, a marketplace for SMEs. Synergising with our wholesale banking and digital commerce platforms, this opens up significant potential in the global trade & supply chain ecosystem.

FY25 and the Future

We concluded FY25 with income of Rs.2,577 Cr representing a 11% growth on a like to like comparison. Our license revenues grew 13%, while product maintenance revenues grew 12%. While some of the recent wins in the AI and banking spaces significantly contribute to the annual recurring revenue, their immediate impact on FY25 revenues were limited. Our gross margins and EBITDA margins improved year on year, while profit after tax was constant owing to higher amortisation of IP costs. Our cash position further strengthened to over Rs.1,000 Cr.

In FY25, we continued to build on all the six levers of Strategy articulated for Intellect 3.0 journey – of achieving profitable growth of existing platforms, expanding to new geographies, building new platforms, deepening engagement with existing customers and expanding our reach through partnerships.

Holistic Business Growth

While we take pride in the superiority of our technologies, our market success, our brand endorsements and financial metrics, we also ensure that such growth is holistic and sustainable. Our zero waste architecture simplifies the financial space, promoting efficiency, transparency, accountability and reach, transforming Institutions and economies and conserving resources – human, physical and computing. Our most recent launch of PF promotes explainable and traceable decisioning and democratises AI. All these positively impact the ESG agenda. We have progressively expanded the scope, coverage and measures to be monitored and reported. In preparing for the future, we also invest in building an inclusive, learning organisation, enabling each associate to ‘live their dream', even as they enable our customers' success. Together with our partner institutions- Mission Samriddhi, Ullas Trust, School of Design Thinking – we positively impact the communities and ecosystem through direct investments, partnership with development accelerators and policy influence through Design Thinking.

I wish to record my deep appreciation and gratitude to our board, leadership team, associates, shareholders, customers, business partners and bankers for the trust placed in our vision and partnering in our journey. I am confident that the future would present us with greater opportunities and an equally rewarding and satisfying journey ahead.