Polaris Q3 post highest-ever quarterly profits at Rs 50 cr

IT firm Polaris Software Lab today said its net profit has increased 25.08 per cent at Rs 50.12 crore for the quarter ending December 31, 2010.

The company registered a net profit of Rs 40.07 crore during the corresponding quarter previous year, which is the highest profit ever recorded by the company.

The revenue for the third quarter ended December 31, 2010 stood at Rs 411.41 crore compared to Rs 334.68 crore for the third quarter of 2009-10, up 22.92 per cent.

"This quarter has seen the highest net profit recorded in the company, with quarterly profits crossing Rs 50 crore for the first time, which has propelled our net worth in the balance sheet to Rs 1,000 crore," Polaris President and Chief Financial Officer R Srikanth said in a filing to the Bombay Stock Exchange (BSE).

In dollar terms, the net profit grew by 30 per cent year-on-year to $11.17 million from $8.58 million, while revenue grew by 23 per cent year-on-year to $89.12 million from $72.55 million.

"We were able to accrue foreign exchange gains this quarter as a result of our advanced hedging and fund management capabilities. We have prudently added to cash reserves while fully supporting business growth," Srikanth said.

The Americas contributed 44 per cent to the quarter's revenue, while Europe, India, the Middle East and Africa region contributed 26 per cent and 12 per cent, respectively to the revenues. Asia Pacific accounted for 18 per cent of the revenues.

Cash and cash equivalents stood at Rs 508 crore at the end of the quarter. Gross addition of Rs 81 crore to cash reserves has been the highest ever in a single quarter, it said.

Shares of the company closed at Rs 178.05, down 3.08 per cent from its previous close on the BSE.