Infotech Enterprises Q2 net down by 7% to Rs 31 crore

HYDERABAD: City-based engineering solutions provider Infotech Enterprises today posted net profit of Rs 30.74 crore for the quarter ended September 30, 2011, a dip of nearly 7 per cent over the same period in the previous fiscal.

BVR Mohan Reddy, Chairman and Managing Director Infotech said the company clocked a 14.5 per cent sequential growth compared to the first quarter and the dip in net profit is attributed to excess tax.

"We were paying 21 to 22 per cent tax in STPI. Since we moved out of that we had to pay 33 to 34 per cent tax. Secondly, we had to provide Rs 9 crore as forex loss on account of Rupee depreciation. This is only book loss," Reddy told PTI.

The company expects to move into an SEZ where they can avail tax benefits, he said.

The revenue for the quarter stood at Rs 372.6 crore registering a Y-o-Y growth of 26 per cent, while revenues from Engineering services crossed Rs 250 crore in the quarter for the first time and and 100 million for the first half of this year, an Infotech release said.

Reddy said there were no signs of customers cutting down projects or giving indications of contraction in business despite the macro-economic challenges across the globe.

"Order backlog and pipeline have been the best in the history of the company. In the second half of the year, we would hire 1000 additional resources to cater to growing business. We are aggressively pursuing acquisitions to increase our footprint in geographies. We will continue to focus on operational excellence and are confident of improving margins further in coming quarters," Reddy said.