Polaris to hike salaries by 12 pc

Polaris Software Lab Ltd is planning to increase wage for its Indian associates by 12-13 per cent and by 2-3 per cent for associates outside India during the current fiscal.

The company would also invest around Rs 80 crore during the current fiscal in line with its growth target set $435 million for the current fiscal, an increase of around 25 per cent.

Arun Jain, founder, chairman & CEO, Polaris Software, said the investment would be mainly on creating infrastructure, software development, additional human resource and others.

The company reported a growth of 25.8 per cent in profit after tax (PAT) at Rs 57.58 crore during the fourth quarter ended March 31, 2011, as compared to Rs 45.74 crore reported during the same period of previous fiscal. The revenue grew by 24.6 per cent to Rs 437.53 crore, from Rs 351.04 crore.

US-based IdenTrust, in which Polaris has acquired 85.3 per cent stake for $20 million (around Rs 88 crore), would add $11 million in the current fiscal to the company's topline, said R Srikanth, executive vice president & chief financial officer, Polaris Software.

The revenues from Intellect, the company's flagship product, crossed Rs 100 crore, and 16 new Intellect wins were recorded in the quarter, of the 20 new clients. Year-on-year this product grew by 35 per cent to Rs 362 crore from Rs 268 crore.

The company which clocked a revenue of $348 million has set a target of around $425-435 million for the current fiscal, an increase of around 25 per cent.

Americas contributed 44 per cent, Europe 24 per cent, IMEA 14 per cent and Asia Pacific 18 per cent of the quarter revenues. Currently, onsite business contributes around 42 per cent. This year the company is planning into foray into Thailand and Bangladesh, said Jain.

Currently the company has around 6500 people on the board and planning to add another 2000-2500, net addition, which would take care of attrition which is the tune of 18 per cent, said Jain.