New Delhi: IT firm Infotech Enterprises on Wednesday said its net profit has more than doubled to Rs 64.71 crore for the quarter ended June 30, on the back of strong demand and operational efficiency.
This is against a net profit of Rs 26.85 crore for the April-June 2011 quarter.
Revenues of the company during the reporting quarter increased 31.64 percent to Rs 456.38 crore in the reported quarter from Rs 346.67 crore in the corresponding quarter last year, Infotech Enterprises said in a statement.
"Our business performance continues to be robust. We have seen volume growth and stable margins inspite of adverse macro-economic challenges around the world," Infotech Enterprises Chairman and Managing Director BVR Mohan Reddy said.
The order pipeline and continuous focus on key margin drivers like efficient onsite-offsite-offshore mix, right sizing the pyramid and improving productivity and utilisation will drive operating margins in coming quarters, he added.
During the quarter, the company added 17 new customers.
"Our order pipeline continues to be robust and we are confident of growing our business more than the industry average. The highest manpower additions this quarter is a reflection of our confidence in our business," Reddy said.
The company added 915 people (gross), while the net addition stood at 464 in the quarter, which it said is the highest in last five quarters. Its total headcount is about 9,800 people.
The voluntary attrition rate stood at 14.3 percent (annualised).
"The salary review has been completed and implemented effective April for 100 percent of eligible staff globally and all arrears paid in Q1 2012-13," the company said adding that overall salary increase was about 6.45 percent.
The wage hikes had an adverse impact of 370 basis points (3.7 percent) on operating margins, partly offset by favourable exchange rate impact on margin of about 290 bps (2.9 percent).
The company's cash balances, including liquid investments, stood at Rs 482 crore and capex for the quarter was Rs 21 crore.
Private equity firm Carlyle has recently picked up 9.9 percent stake in the company through stock exchange transactions.
First Published: Wednesday, July 18, 2012, 19:47