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Polaris Software net slips 7% to Rs 55 cr in `02-03
Chennai, May 31: Polaris Software`s FY03 net profit slipped 7.4 per cent to Rs 54.5 crore, compared with Rs 58.9 crore in FY `02. The board has recommended a 35% dividend. Consolidated EPS was Rs 7.8.
Income from software services and products increased 50.8% to Rs 428.3 crore. Software development expenses rose 62.6% to Rs 251.3 crore. Polaris CMD & CEO Arun Jain attributed the change in billing method followed for some Citigroup accounts (acquired by Orbitech) and increase in development expenses as reasons for fall in margins. Earlier, Orbitech billed its customers on a cost plus basis with a provision to reimburse travel and other expenditure through other methods.
The company lost a major order from Citigroup Europe. Polaris will grow at 3-6% on a sequential basis as revenue from products increases, expanding margins. Revenues from products constitute only 13% of total revenues.
Bureau Report