Hyderabad: Engineering design and GIS solutions provider Infotech Enterprises on Monday said its net profit more than doubled to Rs 37.91 crore in the third quarter on improved margins in the aerospace vertical.
It had a net profit of Rs 14.47 crore in the same quarter ended December 2008.
It also announced acquisition of the US-based Daxcon Engineering Inc for an undisclosed sum in an all cash deal. It also signed a long-term agreement with Hamilton Sundstrand Corporation (HSC) to provide embedded software and electronic engineering design services worldwide.
Revenue stood at Rs 239.1 crore for the third quarter while the operating margins were 21.6 per cent, it said.
Company's CMD BV Mohan Reddy told reporters here that there was no pressure on margins and top ten customers of the company continued to support. The aerospace vertical pushed the margins up.
On the guidance for Q4, Reddy said that they expect revenue of Rs 14 to Rs 15 crore from Dexcon and another Rs 18 to Rs 20 crore additional from the present operations. "The growth for the next quarter will be above double digit and about eight large customers of Dexcon like Caterpiller and Terex will come to us."
Reddy said the agreement with HSC requires an addition of 400 engineers in next three years. The company has a cash reserve of Rs 396 crore as on today. He hinted that they are looking for another acquisition in the present quarter. Shares of the company closed up by 3.47 at Rs 305.95 on BSE.
PTI
First Published: Monday, January 18, 2010, 20:05