GSS America Infotech earns Rs 2.987 bn in revenue

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Hyderabad, Apr 29 (UNI) GSS America Infotech Limited, a NSE and BSE listed entity with focus on IT Infrastructure and Software Services sectors, today announced it earned revenues of Rs 2.987 billion for the year ending March 31, 2008, and Profit Before Tax for the same period stood at Rs 696 million.

The overall revenue of the Company showed a growth of 81.82 per cent over the previous year's Rs 1.643 billion due to excellent demand for the Company's integrated service approach for IT Infrastructure and Software Services delivery Model, according to a release here.

The company recorded a growth of 85.10 per cent in Profit Before Tax from Rs 376 Million in the previous year. This growth had been made possible due to the enlargement of operations and consequent economies as well as improved management of costs.

However, the lower growth in Profit After Tax was largely due to the provision of Minimum Alternate Tax and amortisation of goodwill arising out of acquisitions.

Company CEO, Chairman and Managing Director Bhargav Marepally said the Earnings Per Share on the Expanded equity due to the Initial Public Offering in February 2008 was about Rs 47. The Board had recommended a dividend of 25 per cent for the financial year 2007-08, he added.

He said the company has targeted to reach Rs five billion revenue during 2009 by organically growing about 67 per cent over 2008. The Profit After Tax was expected to be around Rs 950 million for 2009.

On IPO, he said the company received good response for its shares in February 2008 despite adverse and challenging market conditions. The company had raised about Rs 1398.99 million by issuing 34,97,495 shares at Rs 400 per share, including Rs 390 per share as premium.

The Company intended to use these proceeds as per the RHP filed with the SEBI and had used as on date 121.57 million and invested the balance money in banks as Fixed Deposits.


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