Infotech sees marginal dip in Q3 profit at Rs 36.8 crore

HYDERABAD: Infotech Enterprises today posted a Rs 36.8-crore net profit on an income of Rs 313.8 crore in the third quarter ended December 31, down 2.1 per cent over the same period last year.

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

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

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

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

"Both our verticals (engineering and N&CE) showed quarter-on-quarter volume growth of 5.2 per cent and 14.1 per cent. Our cost structure remains steady, but the operating margins 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 in rail domain by entering into a long-term agreement with a leading rail signalling company in UK, Reddy said.