Infotech posts 22 percent revenue growth

Engineering solutions company Infotech Enterprises has reported a 22 percent growth in revenue at Rs.578.4 crore for the quarter ended December 31, 2013, against Rs.475 crore in the like period last year.

The Hyderabad-based firm posted a 12.3 percent rise in net profit at Rs.69.39 crore for the quarter, compared to a profit after tax of Rs.61.82 crore in the corresponding quarter of the previous year.

The company in a statement here said its operating margins were at 19.6 percent. The cash balance, including liquid investments, is Rs.655 crore, the highest-ever for the company.

"After four quarters of flat business, we saw significant growth in our business for this quarter", said Infotech Chairman and Managing Director B.V.R. Mohan Reddy.

He said the overall growth was driven by the growth in top 20 customers.

"Future looks promising as reflected in current order backlog and pipeline. We are confident of a stronger H2 and equally strong FY 15 on revenue, operating margins and net profit," he added.

Americas continued to top among geographies contributing to Infotech's revenues. However, its share came down to 56.5 percent at the end of the third quarter against 60.7 percent in the same quarter last year.

Europe's contribution grew from 25.3 percent to 29.2 percent. Asia Pacific and others contributed 14.3 per cent against 14 percent during the same quarter last year.