Cranes Software net drops 15% on falling demands

Buckled under the pressure of a falling demand in the international markets coupled with relatively higher expenses, Cranes Software International has reported around 15 per cent drop in its net profit to Rs 26.73 crore in the quarter ended 31st December, 2008 when compared with the same quarter in the previous fiscal.

The Bangalore-headquartered company which provides statistical analytics and engineering simulations software, has however reported a 6 per cent increase in their consolidated revenue to Rs 110 crore in the third quarter as compared with the same quarter previous fiscal. On sequential quarter basis, the company's net profit dropped by 23 per cent and revenue by 13 per cent.

"Since we are a software product company, the performance last quarter was primarily affected due to the current economic scenario. We are finding a bit of difficulty in the collections (of revenues) from some clients, and we have also held back supply to some of the distributors on these grounds," H Shankar, CFO of the company said.

The company has raised Rs 119 during the last two quarters through preferential issue of equity shares. The company said they would use the funds to pursue inorganic opportunities in line with their line of business.