Business, profits drop after abortive merger

Hyderabad, Apr 25 (UNI) Amid dithering over an abortive amalgamation, Visual Soft Technologies, IT Service provider, saw a dip in business and profits in Q4 and the year ended March 31 this year.

The company's income in Q4 of 2005-06 was Rs 28.95 crore against Rs 51.44 crore for the corresponding period last year. Net profit dropped from Rs 20.2 crore to Rs 4.07 crore q-o-q. Total income for 2005-06 was Rs 163.91 crore, down from Rs 192.87 crores on Y-o-Y and net profit in the year ended March 31 this year dropped to Rs 20.20 crore from Rs 28.33 crore last year.

During the current quarter, the company achieved turnover of Rs 27.25 crore in the solutions segment. The company was in the consolidation process post-withdrawal of amalgamation proposals considered earlier. The current quarter revenue was in line with the estimates provided by the company.

The company as a part of business consolidation process hived off its non-core business during the third quarter of this year. After factoring in this, it estimated and announced that it would close the year with a top line of approximately Rs 150 crore and bottom line of approximately Rs 20 crore. The company had achieved the projected guidance for 2005-06.

Consequent to withdrawal of merger proposals, the company was in the consolidation process and was putting in its best efforts to grow organically. The company with substantial asset base was also exploring possibilities of leveraging this and growing both organically and inorganically in the ensuing financial year.

Three new clients were added during the quater and the strength of employees in software division as on March 31, 2006 was 791.

The company's BPO Division had achieved turnover of Rs 58.00 lakh in the segment for the quarter. The company employed about 69 people in the segment, a company release here said.

UNI DB AA 1930