Polaris Consulting reports 6.9% drop in net profit

Polaris Consulting & Services Ltd has posted a net profit of Rs 36.54 crore for the quarter ended December 31, 2015 as compared to Rs 39.25 crore for the quarter ended December 31, 2014.

N M Vaidyanthan, CFO, Polaris Consulting & Services added that the PAT has been impacted due to part provisioning of one time transaction costs in relation to the SPA with Virtusa Corporation.

"Our ongoing effort to optimise working capital has improved our cash position significantly to Rs 408 crore from Rs 294 crore during the last quarter," he said.

Of the total estimated one-time transaction costs of Rs 21.2 crore related to the SPA with Virtusa Corporation, the company provisioned Rs 10.6 crore in this quarter, said the company

Revenues for the quarter were Rs 517.59 crore, up nine per cent year-on-year, compared to Rs 474.76 crore in the same quarter last year. In dollar terms, quarter revenues stood at $76.51 million.

The company said that the definitive agreement with Virtusa announced in November expect to close during the fourth quarter. From a strategic perspective the company would continue to remain focused on Digital Transformation in financial services, a strategy which is already yielding positive results, said Jitin Goyal, CEO and Executive Director, Polaris Consulting & Services Ltd.