Blue Star Infotech’s earnings likely to rise three-fold in FY14

Blue Star Infotech, a Mumbai-headquartered small-cap IT player, expects its full year earnings to rise nearly three times due to robust demand from US clients and the strong performance of its main business divisions.

Blue Star’s earnings per share is expected to rise to Rs 13 for FY14 from Rs 4.8 last year, while revenues are likely to climb to Rs 260-265 crore from Rs 187 crore, Sunil Bhatia, MD and CEO, told ET. Net profit is likely to jump 170 per cent to Rs 13.5 crore for the full year.

The 41 per cent expected growth in revenue, if achieved, will propel the company’s income for the first time beyond the Rs 200-crore mark. In the first nine months of FY14, it clocked Rs 196 crore in income, surpassing the previous fiscal’s topline.

Net profit was Rs 10.7 crore during the nine months to December 2013. Blue Star Infotech offers IT services to clients in the US, Europe and Asia in appliage cation implementation development, product and software engineering testing.

Blue - Star shares have climbed 75 per cent in a year after dropping 7 per cent over the past month.