Q2 Results FY 2013-2014 INR Polaris revenues grow 13% Q-o-Q to Rs. 643 Cr, completes restructuring on schedule

Profit after Tax grows 38% to Rs. 60 Cr

Chennai (India), October 22, 2013: Polaris Financial Technology Limited, a leader in products, solutions and services that enable unprecedented operational productivity for the global Financial Services industry, today announced its second quarter results for FY 2013 -14.

Key Performance Metrics

For the quarter ended 30th September, 2013:

• Quarter revenues grew by 13% Q-o-Q to Rs. 643 crore, from Rs. 567 Crore and 7% Y-o-Y to Rs. 643 crore from Rs. 599 crore

• EBITDA grew by 24% Q-o-Q to Rs. 124 crore from Rs. 100 crore

• Profit After Tax (PAT) grew by 38 % Q-o-Q to Rs. 60 crore from Rs. 43 crore and 8% Y-o-Y to Rs. 60 crore from Rs. 55 crore

• EPS for the Quarter was Rs. 6.01 (Rs. 24.04 on an annualised basis). Excl. Forex impact the EPS would have stood at Rs. 9.36

• Cash and cash equivalents stood at Rs. 518 crore at the end of the quarter

Management Statement

Arun Jain, Founder, Chairman & Group CEO, Polaris Financial Technology Limited said, "This was the first complete Quarter after we announced our restructuring in June 2013. I must congratulate the Management Teams of our four business units for being able to restructure themselves around the customer quickly and efficiently. I am also happy to see that, despite so many changes, this Quarter has shown green shoots of growth after a few flat quarters. We are in the right direction and poised to deliver greater value to the Financial Services industry with products and services designed for unprecedented operational productivity." Nat Narayanasamy, Group CFO, Polaris Financial Technology Limited said, "We have successfully completed the divestment of IdenTrust with a positive impact of about Rs. 14 Crore on a consolidated basis. We continue to keep our cash focus and have maintained a cash position of over Rs. 500 Crore." Q2 Results FY 2013-2014 INR

FT Sourcing (Services)

Key Performance Metrics:

• FT Sourcing revenues grew 12% Q-o-Q to Rs. 504.25 crore, 78% of consolidated revenues

• Gross margin for FT Sourcing (Services) stood at 33%

• EBITDA grew by 25% Q-o-Q at Rs. 101 crore. EBITDA margin stood at 20%.

• Operating Profit grew by 32% Q-o-Q at Rs. 86 crore

• Four new FT Sourcing wins were recorded in this quarter

Polaris' FT Sourcing Quarter revenues were distributed across all key business geographies with the Americas contributing 54%, Europe 21%, India 6% and Rest of the World 19%.

Rs.Crore Q2 Results FY 2013-2014 INR

FT Intellect (Products)

Key Performance Metrics:

• FT Intellect revenues grew 19% Q-o-Q to Rs.139 crore, 22% of consolidated revenues

• Gross margin for FT Intellect (Products) stood at 54%

• EBITDA grew by 18% Q-o-Q at Rs. 23 crore. EBITDA margin stood at 17%.

• Operating Loss stood at Rs. 2 Crore after investments of Rs. 10 crore in S&M

• FT Intellect is in investment mode to drive growth and market share

• Nine new FT Intellect wins were recorded in this quarter

Polaris' Intellect Quarter revenues were distributed across all key geographies with the
Americas contributing 21%, Europe 29%, India 10% and Rest of the World 40%.

Rs. Crore Q2 Results FY 2013-2014 INR Financial Results for the Second Quarter Ended September 30, 2013

POLARIS FINANCIAL TECHNOLOGY LIMITED (Formerly known as Polaris Software Lab