Ebix Inc (EBIX) has reported a 12.31 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $24.63 million, or $0.76 a share in the quarter, compared with $21.93 million, or $0.65 a share for the same period last year.
Revenue during the quarter grew 14.02 percent to $80.05 million from $70.20 million in the previous year period. Gross margin for the quarter contracted 471 basis points over the previous year period to 71.86 percent. Total expenses were 65.44 percent of quarterly revenues, up from 63.22 percent for the same period last year. That has resulted in a contraction of 223 basis points in operating margin to 34.56 percent.
Operating income for the quarter was $27.66 million, compared with $25.82 million in the previous year period.
Ebix chairman, and chief executive officer Robin Raina, said, "2016 was the 17th consecutive year of revenue and EPS growth for the Company and Q4 2016 was a record quarter for revenue, EPS and operating cash flows. That in our view speaks to the fundamentals and consistency of our business model. We are clearly excited with the momentum that we have generated in the business and are pleased to finish 2016 on a strong note."
Operating cash flow improves significantly
Ebix Inc has generated cash of $83.75 million from operating activities during the year, up 72.02 percent or $35.06 million, when compared with the last year.
The company has spent $20.74 million cash to meet investing activities during the year as against cash outgo of $37.39 million in the last year.
The company has spent $4.08 million cash to carry out financing activities during the year as against cash outgo of $6.31 million in the last year period.
Cash and cash equivalents stood at $114.12 million as on Dec. 31, 2016, up 99.58 percent or $56.94 million from $57.18 million on Dec. 31, 2015.
Working capital increases sharply
Ebix Inc has recorded an increase in the working capital over the last year. It stood at $120.16 million as at Dec. 31, 2016, up 83.27 percent or $54.59 million from $65.56 million on Dec. 31, 2015. Current ratio was at 2.34 as on Dec. 31, 2016, up from 2.28 on Dec. 31, 2015.
Debt increases substantially
Ebix Inc has witnessed an increase in total debt over the last one year. It stood at $272.23 million as on Dec. 31, 2016, up 31.44 percent or $65.12 million from $207.11 million on Dec. 31, 2015. Total debt was 33.87 percent of total assets as on Dec. 31, 2016, compared with 30.64 percent on Dec. 31, 2015. Debt to equity ratio was at 0.62 as on Dec. 31, 2016, up from 0.51 as on Dec. 31, 2015. Interest coverage ratio improved to 13.87 for the quarter from 13.53 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
