Intellect Design Arena shares plunge over 10% in two sessions; here is why

Shares of Intellect Design Arena, the Chennai-based software services company, fell as much as 10.43% in two trading sessions to hit an intraday low of ₹813.35. In the intraday deals, Intellect Design Arena shares fell as much as 7.53% amid spike in trading volumes.

Intellect Design Arena on Saturday reported standalone loss of ₹7.20 crore in the third quarter of current financial year compared with a net profit of ₹34 crore in the same period last year. Its revenue from operations declined nearly 2% to ₹381 crore compared with ₹387 crore in the year-ago period.

During the quarter, Intellect Design Arena incurred one-time exceptional expense of ₹8.5 crore on account of implementation of new labour codes.

During the quarter, Intellect Design Arena launched world’s only AI-first payments platform.

"As a purpose-built low-code/no-code composable framework, the platform enables institutions to move beyond incremental upgrades and design payments systems that deliver speed, resilience, and competitive advantage at scale. It allows them to rapidly deploy new payment rails and scale real-time payment capabilities with speed and operational certainty," Intellect Design Arena said.

"Crossing ₹3,000 crore in Last Twelve Months revenue, expanding EBITDA by 33% year-on-year and cash reserves at ₹1,198 crore marks a defining moment in Intellect business design algorithm. We have 3 sustainable & growth businesses in the form of wholesale banking, consumer banking and IntellectAI to capture three opportunity trends," said Arun Jain, Chairman and Managing Director, Intellect Design Arena.

Intellect Design Arena said that Purple Fabric, its artificial intelligence platform that accelerates enterprise AI adoption for financial institutions, onboarded 14 Value Discovery Partners across India, Africa, Europe, the UK, APAC, and Canada, to accelerate AI-First value discovery and enterprise adoption of Purple Fabric.

"As financial institutions worldwide face the challenge of moving Generative AI initiatives from "pilot mode" to production-grade "business impact," this new partner ecosystem will play a pivotal role in bridging the gap. The Purple Fabric Value Discovery Partnership Program is anchored on deep technical and strategic collaboration," Intellect Design Arena added.

As of 11:09 am, Intellect Design Arena shares traded 6.73% lower at ₹825, underperforming the NIFTY 500 index which was down 0.34%.