Infotech Enterprises Q4 net profit seen up 3% at Rs 38 cr

Engineering solutions provider Infotech Enterprises is expected to post good set of numbers for the quarter ended March 2011 led by pricing improvement.

According to CNBC-TV18 estimates, the company is expected to post 3.1% growth in fourth quarter net profit of Rs 38 crore as against Rs 36.84 crore in previous quarter.

Net sales are seen going up by 5.1% to Rs 330 crore from Rs 313.8 crore on quarter-on-quarter basis.

Earning before interest, tax, depreciation and amortisation (EBITDA) is likely to go up at Rs 51.7 crore in the quarter ended March 2011 as against Rs 47.78 crore in the same quarter the previous year.

EBITDA margin is seen improving at 15.67% versus 5.2% (QoQ).

Q4 highlights 
-Revenue growth to be 5% led by pricing increase + currency benefit
-Management reported that it had achieved 3-5% pricing hikes, effective 1 January 2011, with respect to its top three customers.
-Company had guided for a 120 bps improvement in overall pricing from Q3
-Management indicated that improving margins would be its top priority
-To focus on improving utilization
-Q3 utilisation in the NCE and Engineering verticals was 81% and 75%, respectively, and these verticals could operate at 85% and 80% utilisation levels, respectively
-Strong traction in both N&CE and EMI verticals
-Margin outlook for FY12