Intellect Design Arena Ltd, a Polaris Group company, has reported a net loss of ₹11 crore for the first quarter ended June 30 compared with a net loss of ₹10 crore for the corresponding period last year. Revenue increased by 34 per cent to ₹192 crore (₹143 crore) due to better order inflow.

Software development expense increased by nearly 37 per cent to ₹93 crore (₹69 crore). Similarly, selling and marketing expense and general and administrative expenses increased by 32 per cent to ₹80 crore (₹60 crore).

There has been a significant reduction in losses in sequential quarters from ₹29 crore in March quarter to ₹11 crore in the June quarter.

During the quarter, the company signed 13 new wins for Intellect products. Out of the total revenue, 49 per cent came from advanced markets, says a press release.

S Swaminathan, Chief Financial Officer, Intellect Design, said the company is on track to meet its guidance of revenue growth of 22-26 per cent this year. “We are managing investments in digital platforms and market opportunities for sustained growth,” he said.

The company’s board today gave in-principle approval for the divestment of equity shares held in its wholly-owned subsidiary, SFL Properties Pvt Ltd.

The company acquired the entire interest of SFL, which is engaged in the business of real estate promotion and construction, on December 1, 2010, for ₹9.81 crore. The excess of purchase consideration paid over the net assets of SFL properties to the extent of ₹8.65 crore was recognised as goodwill, says information in the company’s 2014-15 annual report.

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