Infotech Enterprises to double SEZ staff, income to save tax

HYDERABAD: Infotech Enterprises is looking at doubling its staff working in special economic zones (SEZs) and double income from such operations to save significantly on tax outgo, said a top executive.

The engineering services provider currently draws some 12% of its annual revenues from SEZs by employing around 1,500 staff, said chief financial officer Ajay Aggarwal. The company now plans to double the staff in two years, expecting to improve contribution from SEZs to some 22% of revenues.

For the year to March 2013, the company reported a growth of 43% in net profit at Rs 231 crore, while it saw revenues expanding by 21% at Rs 1,873 crore.

"Current operations from SEZs have helped us reduce the tax outgo by 479 basis points to 30.5%. Increased operations from SEZs should help us further save on taxes to some 26%," he said. The company currently has SEZs at five locations - Hyderabad, Vizag, Kakinada, Bangalore and Noida.