Polaris net down 46%

BS 200 SCORECARD

Polaris Software posted a net profit of Rs 12.96 crore in the first quarter of 2005-06, down by 46.20 per cent against Rs 24.09 crore for the year-ago period.

Income from operations during the same period was Rs 209.38 crore, 16.58 per cent higher than the Rs 179.59 crore recorded the previous year.

Arun Jain, chairman and CEO, said the result was impacted by absence of returns on the investment the company had made in its products and BPO.

The investments are unlikely to give returns for three to four quarters, but the losses would gradually decline, he added. Polaris' results have also been affected by the change in way its investment on its product, IntellectSuite, has been treated in the accounts.

In the preceding year's first quarter, the investment was capitalised to the extent of Rs 5.11 crore.