Infotech Enterprises registers Y-o-Y growth of 88.4% on PAT

Hyderabad - Infotech Enterprises Limited reported a year-on-year growth of 88.4% on its Profit After Tax for the quarter ended June 30, 2009 - Rs.46.27 crore. The company registered a revenue of Rs 232.60 crore in the quarter ended June 30, 2009, against Rs 200.61 crore in the same quarter last year, showing a growth of 15.9 per cent.

Commenting on the First quarter FY 10, Mr. BVR Mohan Reddy, Chairman and Managing Director, said, “I am pleased to announce that the company has delivered a strong performance in the first quarter of the financial year 2009-2010. Despite the adverse global macro-economic conditions, the quarter saw revenues at Rs. 2,326.0 million ($ 47.8 million). We not only retained our revenues but also posted a 80 basis points increase in operating margins as compared to the sequential quarter. This was achieved because of operational excellence and continued focus on cost control measures during these challenging times. Also, we have improved our PAT to Rs. 462.7 million ($ 9.5 million).

Despite adverse conditions, our overseas subsidiaries have continued to show strong sustainable performance. IEEL revenues have grown by 53%, IEAI by 13% and IEG by 6% over quarter-1 of last year despite facing a challenge globally. The share of revenues from European geography has increased during the quarter. We continue to make in-roads in the Asia Pacific-India-Middle east region. We have started receiving orders from Japan.

Our top 10 customers have been fairly stable in their revenue contribution. The company, through its continued efforts in improving customer relationship, has enabled us to maintain a healthy order pipeline. Our verticals, UTG and EMI, have shown growth of 15% and 16% respectively in the quarter as compared to quarter-1 of last year.

We have a strong balance sheet with cash balance of Rs. 3,469 Millions. Our receivables days for the Group are at 94 days as against 105 days during Q-4.”

• 18 customers were added during the quarter, 8 in UTG and 10 in EMI.
• Infotech signed a multi-year partnering contract with inCONTROL Tech (iTEC), Malaysia, to implement an Enterprise GIS Information System for Tenaga Nasional Berhad (TNB), the largest electric utility in Malaysia.
• Strengthened market presence by winning major Aerospace opportunities globally.
• Launched global PMO to support drive for customer delight through Global Delivery Model in UTG. Engineering services have revamped the business development structure and positioned it to comprehensively harness the market potential.
• Launched new service offerings: For Utilities – solutions to cater to Smart Grid programs; OSS related services. For Engineering – Plant engineering, Sustenance engineering, Requirements based engineering.
• Infotech obtained ISO 27001 certification for the Kakinada facility.
• Participated in prestigious seminars like GITA, Florida, Integraph, Washington, Le Bourget Paris Air Show and EADS, Toulouse.