Infotech Q3 net dips 32% on forex losses

Infotech Enterprises, a Hyderabad-based engineering and geographic information services provider, reported a 32.16 per cent decline in its net profit to Rs 14.47 crore for the third quarter ended December 31, 2008, as compared to Rs 21.33 crore in the corresponding quarter last year.

The net was impacted largely due to foreign exchange currency and translation losses of Rs 22.46 crore (this includes provision of Rs 10 crore made towards possible future currency losses from open forward contracts).

Revenues, however, grew 31.6 per cent to touch Rs 232.75 crore during the quarter, as compared to Rs 176.85 crore for the same period last year.

The company’s operating margins were at 19.4 per cent, as against 20.6 per cent in the sequential quarter, on account of currency fluctuations and investments in setting up a subsidiary in Japan.

“We witnessed volatile cross-currency movements during the quarter, which adversely impacted our dollar reported revenue figures as much as -7.9 per cent. Our efforts to contain costs during the quarter have helped us maintain healthy operating margins,” BVR Mohan Reddy, chairman and managing director of Infotech, stated in a press release today.