Infotech PAT down on higher operating expenses; topline up
"In spite of these major challenges, we were able to keep revenue, margins and profitability for the last two quarters at a stable level. We are confident that we are back on a robust growth path from this quarter onwards," said B V R Mohan Reddy, Chairman and MD Infotech.
July 19, 2013 / 13:37 IST
Engineering solutions provider Infotech Enterprises today said its profit after tax (PAT) for the quarter ended June 30 declined 16 percent to Rs 54 crore from Rs 65 crore in the same period last year on account of higher operating expenses.
Also Read: TCS surges after April-June earnings beat estimatesRevenues for the quarter under discussion, however, grew 6 per cent to Rs 484 crore from Rs 456 crore a year ago. The city-based company incurred Rs 404 crore towards operating cost during the first quarter the current fiscal as against Rs 371 crore during the April-June period in FY 13. B V R Mohan Reddy, Chairman and Managing Director, Infotech, said challenges that the company faced in the last two quarters related to customer engagements and uncertainties in global economies are now behind it. "In spite of these major challenges, we were able to keep revenue, margins and profitability for the last two quarters at a stable level. We are confident that we are back on a robust growth path from this quarter onwards. While we grow our business, we are equally committed for stable margins and profitability. We are confident of a strong performance in FY14," Reddy said in a statement. Ajay Aggarwal, Chief Financial Officer, said both operating profit and net profit grew Q-o-Q, despite margin headwinds of annual wage hike and one-off dividend tax impact. Infotech said 10 clients were added during the quarter - five in engineering and an equal number in utilities, telecom and data transformation and analytics verticals. Shares of Infotech closed at Rs 183.20 apiece on BSE today. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
