Aztecsoft Q1 profit dips on rupee impact
Software services firm Aztecsoft, which posted a near 63 per cent decline in profit for the first quarter ended June 30, said the sharp rupee appreciation had impacted its performance.
By PTI |
NEW DELHI: Software services firm Aztecsoft, which posted a near 63 per cent decline in profit for the first quarter ended June 30, said the sharp rupee appreciation had impacted its performance.
"Rupee appreciation was the fundamental reason. However, our tight control on operation and hedging has enabled us to reduce the impact," Aztecsoft Managing Director V Sunderajan said in a telephonic interview from Bangalore.
The company's consolidated profit after tax decreased 62.63 per cent to Rs 5.70 crore for the quarter as against Rs 9.27 crore in the corresponding period last fiscal.
Consolidated revenues for the first quarter dropped marginally at Rs 59.07 crore as against Rs 59.48 crore in the year-ago period.
"The revenues were impacted by 6.8 per cent on account of unanticipated exchange rate variation. However, tight control over operations, better utilisation and favourable hedging ensured that the bottomline impact was limited to 1.2 per cent of revenues," the company said.
The Indian currency rose by over six per cent against the dollar in the first quarter of the current fiscal, impacting revenues of software companies.
Aztecsoft is, however, quite optimistic over its performance in the next quarter and said the rupee impact would be limited unless the Indian currency appreciates to a level of Rs 35.
"We have reasonably good hedges. Besides acquisition of new clients and the major contract renewals during the quarter will enable us to accelerate our future growth," Sunderajan said.
"Rupee appreciation was the fundamental reason. However, our tight control on operation and hedging has enabled us to reduce the impact," Aztecsoft Managing Director V Sunderajan said in a telephonic interview from Bangalore.
The company's consolidated profit after tax decreased 62.63 per cent to Rs 5.70 crore for the quarter as against Rs 9.27 crore in the corresponding period last fiscal.
Consolidated revenues for the first quarter dropped marginally at Rs 59.07 crore as against Rs 59.48 crore in the year-ago period.
"The revenues were impacted by 6.8 per cent on account of unanticipated exchange rate variation. However, tight control over operations, better utilisation and favourable hedging ensured that the bottomline impact was limited to 1.2 per cent of revenues," the company said.
The Indian currency rose by over six per cent against the dollar in the first quarter of the current fiscal, impacting revenues of software companies.
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Aztecsoft is, however, quite optimistic over its performance in the next quarter and said the rupee impact would be limited unless the Indian currency appreciates to a level of Rs 35.
"We have reasonably good hedges. Besides acquisition of new clients and the major contract renewals during the quarter will enable us to accelerate our future growth," Sunderajan said.
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