Polaris Consulting & Services jumps after Q1 results

Polaris Consulting & Services rose 5.32% to Rs 201 at 11:54 IST on BSE after consolidated net profit rose 8.20% to Rs 39.72 crore on 1.01% increase in total income to Rs 502.98 crore in Q1 June 2016 over Q1 June 2015.

The result was announced after market hours yesterday, 8 August 2016.

Meanwhile, the BSE Sensex was down 98.75 points, or 0.35%, to 28,083.82.

On BSE, so far 66,000 shares were traded in the counter, compared with average daily volume of 16,112 shares in the past one quarter. The stock hit a high of Rs 204.50 and a low of Rs 194 so far during the day. The stock hit a 52-week high of Rs 224 on 11 August 2015. The stock hit a 52-week low of Rs 147.50 on 25 August 2015. The stock had underperformed the market over the past 30 days till 8 August 2016, falling 4.14% compared with 3.89% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 3.66% as against Sensex's 9.35% rise.

The small-cap company has equity capital of Rs 50.78 crore. Face value per share is Rs 5.

Polaris Consulting & Services said in a press release that its consolidated revenues rose 0.5% to Rs 495.50 crore in Q1 June 2016 over Q1 June 2015. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) rose 2.3% to Rs 58.72 crore in Q1 June 2016 over Q1 June 2015.

The company's Chief Financial Officer, N M Vaidyanathan, said that the company's revenue for the quarter remained relatively flat, in-spite of drop in revenue from the company's largest customer, on account of the productivity savings program which was partially offset by restatement of revenue recognised to comply with Indian Accounting Standards (IND-AS). Annual performance driven pay, bonus payments and tax payments made during the quarter impacted the company's cash position. The company anticipates its liquidity to improve in the coming months driven by internal cash accruals with no significant capital expenditure planned in the near future.

Polaris Consulting & Services is a leader in solutions and services that enable operational productivity for the global financial services industry. Polaris' services include process engineering, solution consulting, system integration, application development and maintenance, production support, testing, and infrastructure management.

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