Sthithi Insurance hikes stake in Zylog

IT company Zylog Systems today said that one of its promoter firms, Sthithi Insurance, had increased its holding in the company by 2.78%, taking its total stake to 26.83%.

Stithi Insurance acquired 4,57,603 equity shares of Zylog through open market transcations, Zylog Systems said in a statement.

Stithi earlier held 24.05% stake in the company.

"We see the increase of this promoter holding as a positive development, and a reflection on the strong profitability of the company," Sudarshan Venkatraman, chairman and CEO, Zylog Systems said.

As a result of this transaction, the promoters of Zylog Sudarshan Venkatraman, Ramanujam Sesharathnam and Sthithi Insurance Services have increased their holding in Zylog from 36.68% to 39.46%, the statement said.

Zylog system posted consolidated net profit of Rs 44.97 crore for the first quarter ended  June 30, 2011, which is 27.5% higher compared to Rs 35.27 crore reported in the year-ago period.

Gross revenue of the company during first quarter of this fiscal was also up by 10.84% at Rs 514 crore from Rs 463.38 crore in Q1 FY11.

The company shares today closed at Rs 402.00 on the Bombay Stock Exchange, down 0.36% from its previous close.