Infotech net dips 8%

Infotech Enterprises Limited, a Hyderabad-based engineering and geographic information services (GIS) provider, witnessed a 7.8 per cent decline in its net profit to Rs 33.96 crore for the third quarter ended December 2011, as compared with Rs 36.84 crore in the corresponding quarter last year.

“The dip in net profit was due to the forex forward cover losses. We follow the mark-to-market process and there we had a notional loss of Rs 23 crore,” said Infotech Enterprises chairman and managing director BVR Mohan Reddy.

Revenues for the quarter stood at Rs 416.52 crore, as against Rs 313.82 crore during the same period a year ago, reflecting a growth of 32.7 per cent. “Our operational margins have gone up by 5 percentage points with 400 basis points coming in because of the forex and 100 basis points because of our operational excellence. We think we will continue on that path of adding another 100 basis points in the current quarter also,” Reddy said.

The company added 11 customers during the quarter.