Polaris Consulting net profit drops to Rs 5.10 crore

Profitability affected due to discount provision to a large customer and loss on BPO business

Polaris Consulting and Services, majority share of which has been acquired by US-based Virtusa Corporation recently, has posted a net profit of Rs 5.10 crore during the quarter ended March 31, 2016, on a consolidated basis compared to Rs 37.08 crore during the same period of previous quarter.

The total income grew to Rs 513.63 crore during the quarter, as compared to Rs 471.39 crore during the same quarter of previous financial year, an increase of 9 per cent.

"Our profitability for the year was impacted due to a discount provision made on a contract with a large customer, a loss on BPO business assets held for sale, a transaction cost and an adjustment for tax pertaining to prior periods," said N M Vaidyanathan, chief financial officer, Polaris. All these items put together had an impact of about Rs 65.7 crore on the company's net income during the year, he said.

Jitin Goyal, chief executive and executive director of the company said that the year was strategically very important for Polaris as it has become part of Virtusa Corporation.

"The combination is synergistic as it will not only autment our capabilities to provide end-to-end BFSI solutions but also expands our geographic reach and enables us to pursue larger business opportunities with an enhanced scale," he said.