HYDERABAD: InfoTech Enterprises Ltd (IEL) has announced that
the company has registered 65% increase in its net profit at Rs 6.32 crore for
the quarter ended on July 30, 2002, as compared to Rs 3.84 crore for the same
period previous year. The GIS focussed company has also registered 40% growth in
total income for the first quarter at Rs 29.6 crore as compared to Rs 21.12
crore for the same quarter recorded last year.
The company’s income from exports increased to Rs 27.19 crore from Rs 18.11 crore. However, the domestic sales have shown a dip at Rs 1.01 crore compared to Rs 2.06 crore during the same quarter last year. Commenting on the results, BVR Mohan Reddy, Chairman and Managing Director, IEL said, "Following a year of strong business expansion in FY 2002, InfoTech’s operations have entered a phase of value-based transition. Strong business expansion continued in the engineering business during the first quarter of FY 2003 that resulted in robust growth mainly through increasing efficiencies in existing resource utilization."
The company’s engagement with Pratt & Whitney continued to progress during the last fiscal and is now the core of its engineering services business. Reddy also accepted that continuing perception of tensions in India as well as softness in the US economy were strong deterrents to business growth during the period for the company and the industry as a whole. "Our GIS Solutions business, that is predominantly offshore centric, was impacted by this situation.
This, accompanied by our conscious effort to reduce exposure to the low value conversion business, resulted in lower revenues from GIS-related services. Overall, our Indian Company’s operations have shown encouraging progress, continuing the improved performance of the previous fiscal," he explained.
While the Indian operations are expected to show progress on financial parameters during FY 2003, the Group financials will be impacted in the near term by the continuing investments in the overseas subsidiaries. The incidence of tax and higher depreciation will also impact profitability. However, from the base of the Q1 performance reported today the company is confident that it will show progressive improvement throughout FY 2003 to post revenues of around Rs. 175 crore. The profit for the group is expected to be in line with that of the previous year.