iGate Global Solutions' board approves merger of subsidiary
Mumbai, Apr 11 (UNI) The board of directors of iGate Global Solutions today granted its in-principle approval to merge the wholly-owned subsidiary, iGate Technology Services, with the company and will be initiating necessary steps in this regard, stated a company communique issued to the BSE today.
The company is also planning to move its existing operations in China from Wuxi to Dalian to leverage on the technology talent pool offered by Dalian.
''Dalian is one of the main cities in China, which is attracting a large amount of foreign investment and is a base to several IT companies particularly focusing on the Japanese market. The company plans to set up its new facility in Dalian and wind up the existing facility in Wuxi'', the communique pointed out.
Meanwhile, the company has reported a 111 per cent increase in its consolidated net profit at Rs 4.71 crore for the fourth quarter ended March 31, 2006, as against Rs 2.23 crore in Q4 FY'05.
Total income moved up to Rs 167.09 crore in Q4 FY'06 as against Rs 145.66 crore in Q4 FY' 05.
The group, however, posted a 74 per cent decline in consolidated net profit at Rs 5.53 crore for the year ended March 31, 2006, as against Rs 21.22 crore in FY' 05.
Total income moved up to Rs 635.31 crore in FY'06 from Rs 597.93 crore in FY' 05.
''Figures for the corresponding period of the previous year March 31, 2005 include profit on sale of assets of Rs 15.64 crore,'' the communique pointed out.
The board has recommended a dividend of 30 per cent as against the previous year's 15 per cent amounting to Rs 3.73 crore for the year ended March 31, 2006, the communique added.
iGate CEO Phaneesh Murthy said, ''The past year saw us acquiring a promising list of Fortune 1000 clients who will drive our revenues. There is a growing optimism about the order pipeline, and we are on the path of growth and predictability of revenues.'' UNI JJ PP SKB1713