Rolta posts 64 pc jump in profit in Jan-Mar

Mid-cap IT services and solutions firm Rolta today said its consolidated net profit has grown 64.4 per cent to Rs 59.21 crore for the quarter ended March 31, 2016.
The company had posted a net profit of Rs 36.01 crore in the same quarter last year.
However, Rolta's total income from operations dipped to Rs 846.04 crore in the reported quarter as against Rs 946.14 crore in the year-ago period.
Enterprise geospatial and engineering solutions (EGES) accounted for Rs 235.58 crore in revenue, while system integration and enterprise solutions contributed Rs 610.46 crore during the said quarter.
"Close to a decade ago, we embarked on an ambitious journey to transform Rolta from a predominantly GIS and Engineering services Company to an IP-led IT organisation. I believe we have now completed the transformation and are at the inflexion point to rapidly reap the benefits," Rolta Chairman and Managing Director K K Singh said.

The Board of Directors have not recommended a dividend for financial year 2016.

However, S&P Global Ratings has lowered its long-term corporate credit rating on Rolta India Ltd to 'CCC-' from 'B+'.
B rating indicates that obligor currently has the capacity to meet its financial commitment on the obligation, whereas CCC rating means the obligation is currently vulnerable to non-payment and is dependent upon favorable business, financial, and economic conditions.
S&P Global Ratings has also lowered long-term issue rating from 'CCC-' from 'B+' on the senior unsecured notes to that Rolta Americas LLC and Rolta LLC issued.
"We lowered the rating on Rolta because the company missed a USD 6.8 million interest payment on its 10.75 per cent 2018 unsecured notes. We are also uncertain of the company's ability to meet its interest payment," S&P Global Ratings credit analyst Ashutosh Sharma said.

The payment was due on May 16, 2016.
"We understand that Rolta intends to make the payment within the 30-day grace period ending on June 15, 2016. However, we do not have any information on the company's current liquidity position, which seems to have unexpectedly deteriorated," he said.
He added that lack of proactive communication from the Rolta management on this unexpected development reflects a weaker efficacy of the company's management and governance.
Rolta has also rejigged its top management team. KT Parnaik, currently President of Rolta's defence and security business, has been appointed as Joint MD along with Rajesh Ramachandran.

Ramachandran was previously serving as President of Global Products and Technology Solutions and CTO.
Atul Tayal, JMD and member of the Board, has stepped down from his positions, Rolta said.