Infotech net up 89%; to invest Rs 53 cr in 3 SEZs

The company recorded a net profit of Rs 24.56 crore for the quarter, as against Rs 12.97 crore in the comparable quarter last fiscal. Revenues crossed the Rs 200-crore mark, a feat achieved for the first time for any first quarter in the company's 17-year history. Infotech recorded revenues of Rs 200.61 crore for the first quarter, as compared with Rs 148.81 crore, registering a year-on-year increase of 34.8 per cent and sequential growth of 7.1 per cent.

"The growth performance during the quarter was primarily on account of operating margins being stable at 18.5 per cent," BV Mohan Reddy, chairman and managing director of Infotech, told mediapersons here on Wednesday. "We expect to maintain the 30-35 per cent growth rate during the year and project to end the fiscal with revenues of Rs 900 crore organically."

Reddy said the company was embarking on a geographical expansion. It plans to move more into the Japanese market during the current quarter with an initial investment of $1 million (Rs 4 crore) as it sees huge traction for its engineering services business there. At present, the US and Europe account for 48 per cent and 42 per cent of Infotech's revenues respectively while the rest is from the Asia Pacific.

During the quarter, Infotech added 298 associates. The company is making a total investment of Rs 53 crore in three SEZs