Infotech Q1 net doubles, but down 5 sequentially

Hyderabad: Infotech Enterprises has recorded revenues of Rs 200.61 crore with a profit of Rs 24.5 crore for the first quarter ended June 30, 2008 as against revenue of Rs 148.81 crore and profit of Rs 12.97 crore for the corresponding quarter last year.

This reflects a growth of 34.8 per cent in revenue and 89.4 per cent in profit year-on-year.

However, sequentially, while the revenue was up 7.1 per cent, the net was lower by 5.3 per cent.

The Chairman and Managing Director of Infotech, Mr B.V.R. Mohan Reddy, said the company has a healthy pipeline and expects to close this financial year with revenues of about Rs 900 crore, without factoring any acquisitions.

The company had raised about Rs 300 crore and expects to close couple of acquisitions during the quarter, he said addressing a press conference here on Wednesday after the company meeting.

THREE SEZs

“The company is in the process of setting up three special economic zones projects with a capacity to host about 2,000 people. These SEZs are located at Visakhapatnam, Kakinada and Noida. They will involve investment of about Rs 53 crore,” he said.

Mr Reddy said about 48 per cent of the company business comes from the US and 42 per cent from the Europe and the rest from other markets. The focus is on serving markets such as Asia Pacific and Japan.

Since the company’s focus is on engineering services design work, this is not affected by the market conditions as in the case of financial services, he said.

Infotech added 24 customers and signed up with French aviation major and entered into another multi year contract with Tele Atlas.

Infotech shares ended at Rs. 187.40 up from previous close of Rs.183.20 at BSE today.