Polaris reports 8.49 % growth in profit

Net income was up 4.13% in the same period

Polaris Financial Technology Group has posted a growth of 8.49% in net profit at Rs 59.81 crore on a consolidated basis for the quarter ended September 30, 2013, as against Rs 55.13 crore for the same period ended last financial year. The net income from operations stood at Rs 610.08 crore for the quarter, as compared to Rs 585.89 crore for the corresponding quarter of last year, with an increase of 4.13%.

 

Arun Jain, Founder, Chairman & Group CEO, Polaris Financial Technology Limited said, “This was the first complete quarter after we announced our restructuring in June 2013."

 

However the standalone results for the quarter took a hit, which according to the company, as the divestment of IdentTrust - a US company in which it acquired stakes earlier - affected rs 26.17 crore during the quarter.

 

The standalone net profit was at Rs 3.10 crore for the quarter ended September 30, 2013, compared to Rs 24.19 crore registered during the same period of previous year.

 

The company has recorded a loss of Rs 26.17 crore in its stand alone financial results for the quarter ended September 30, this year, due to the divestment in IdenTrust, the company said. The company acquired 85.30% stake in IdenTrust Inc, a company engagede in the business of trusted identity solutions and digital identity authentification services based  in the Unitede States. Following to an order received from the Committee of Foreign Investment in the United States, the Board of directors divested the state in IdenTrust and the transaction completed in September, 2013.

 

Nat Narayanasamy, Group CFO, said, “We have successfully completed the divestment of IdenTrust with a positive impact of about Rs 14 Crore on a consolidated basis. We continue to keep our cash focus and have maintained a cash position of over Rs 500 crore.”

 

The net impact of the divestment on the consolidated financial results aggregating to a profit of Rs 14.26 lakh, it added.