Infotech sees marginal dip in Q3 profit

Posted By: Pti
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Hyderabad, Jan 19 (PTI) Infotech Enterprises todaysaid it posted a Rs 36.8-crore net profit on an income of Rs313.8 crore in the third quarter ended December 31, down 2.1per cent over the same period last year.

However, revenues grew by 31.2 per cent from Rs 239crore in the same period last year, the company said.

The city-based engineering services firm attributedthe fall in profit to the higher rupee value, gain in forexand rise in the employee cost.

"We cannot compare this results with that of lastyear. Q3 last year was like paradise for exporters with higherappreciation of the rupee. This year we made two acquisitionsand on account of that there is an increase in the employeecost," B V Mohan Reddy, Chairman and Managing Director,Infotech, told PTI.

Infotech added 15 new customers in addition to renewalof contact by the company''s second largest customer, he said.

"Both our verticals (engineering and N&CE) showedquarter-on-quarter volume growth of 5.2 per cent and 14.1 percent. Our cost structure remains steady, but the operatingmargins were impacted on account of foreign exchange head-winds and our continued investments for future growth."

The firm re-branded utilities, telecom and government(UTG) vertical as network & content engineering (N&CE).

Infotech further strengthened leadership position inrail domain by entering into a long-term agreement with aleading rail signalling company in UK, Reddy said.

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