Infotech Enterprises Q4 net jumps 87% to Rs 70 cr

IT firm Infotech Enterprises has posted 87% growth in profit after tax (PAT) at Rs 69.8 crore for the fourth quarter ended March 31 driven by strong growth in engineering services vertical.

Revenues for the quarter stood at Rs 417.3 crore, up 28% year-on-year basis, BVR Mohan Reddy, Chairman and Managing Director of Infotech said here today.

PAT for the fiscal ended March 31 stood at Rs 161.4 crore, a growth of nearly 16%. Revenues at Rs 1,553 crore saw a 30.7% growth, he said at a press meet.

"We started FY13 with a strong order pipeline and a large order back log. We are confident of an equally good FY13. Engineering services contributed Rs 1,066 crore to the overall revenues in FY12," he said.

Margins from the engineering services for the year were at 18.9%, which is a 244 bps improvement over the previous year. The company was also able to increase margins in Q4 by 70 bps over Q3 in spite of rupee appreciation.

Reddy hinted that PAT may come down in the current quarter as the company proposes salary hike. "In spite of the macro-economic uncertainty around the globe, we had a very good year in line with our expectations."

He said the company has been re-aligned into four business units (BU) - Aerospace, Heavy Equipment, transportation & HiTech, Utilities Telecom and Content - which reflect the markets and the solutions it provides.

Replying to a query, Reddy said the company is looking for acquisitions in the $40-50 million range.

He said Infotech will add 1,500 new employees in the current fiscal. Of this, 30% will be freshers. As on March 31, the company's headcount was 9,334.