Infotech Enterprises Ltd reports revenue growth of 49.7%, at Rs. 5425 million ($120 million)

- Revenue growth of 49.7%, at Rs.5425 million ($120 million), revenues from engineering services up 69%
- Net Profits before Associate Income up by 84.9%.
- Inauguration of new facility at Manikonda, Hyderabad, new development centers established at Kakinada, Sydney & Auckland

Hyderabad, India / Wednesday, April 18, 2007: Infotech Enterprises Limited (BSE: INFOTECENT, NSE: INFOTECENT) has announced that its audited financial results for the quarter ended and year ended March 31, 2007 were taken on record by the Board at its meeting held today.

Note: All discussions in the announcement cover consolidated financial performance of Infotech Enterprises Limited and its subsidiaries.

Commenting on the fourth quarter and annual results Mr. BVR Mohan Reddy, Chairman and Managing Director, Infotech Enterprises, said, "I am extremely delighted to bring out the annual results of Infotech Enterprises Limited. This financial year, we have been successful in achieving the targets. I believe we are entering into FY 08 with renewed confidence and on the backdrop of growing demand for the services we offer coupled with our leadership position in the areas that we operate, our confidence level in repeating a similar level of performance in FY 08 high.

For the FY 2006-07, Infotechs’ group reported revenues of Rs.5425.4 million ($120 Mil), growth of 49.7% over FY 2005-06. Net profit margins improved to 15.2% as against 13.8%.

Our Engineering services business grew at 69% and Geospatial Services grew at 27% along the lines we have shared at the beginning of the year. While we have witnessed growth in all regions, Europe region growth has been higher than the North American region growth on the back drop of some key wins we had in the last two years.

In FY 08, we would focus further on taking solutions-oriented service offerings, investing to build skills in new practices/verticals and pursue several strategic initiatives which would further strengthen our leadership position both in Engineering Services and Geospatial Services."

Key Performance Highlights: Infotech Group
FY 2006-07 Vs. FY 2005-06
- Operating revenues grew by 49.7% to Rs. 5425.4 million as against Rs.3625.0 million
- Operating profits higher by 72.4%, at Rs. 1133.7 million compared to Rs. 657.7 million. Operating margins higher at 20.9% as against 18.1%
- Net Profit after tax (before share of Joint Venture profits) up 84.9%, at Rs.744.1 million as compared to Rs. 402.5 million.
- Net Profit after tax (after share of Joint Venture profits) at Rs. 836.6 million as against Rs. 503.2 million, representing growth of 66.3%.

Quarter 4 FY 2006-07 Vs. Quarter 3 FY 2006-07
- Operating Revenues higher by 5.7% sequentially, at Rs.1511.9 million as against Rs. 1430.4 million
- Operating Margins at 20.4% as against 22.5%. Operating Profits lower at Rs.308.2 million as against Rs. 322.6 million, impacted due to increase in rent on leased premises
- Net Profit after tax (before share of JV profits) up 3.6%, at Rs. 207.3 million as against Rs. 200.0 million
- Net Profit after tax including share of profits from Joint Venture at Rs. 248.7 million as against Rs. 187.7 million, up by 32.5%

Quarter 4 FY 2006-07 Vs. Quarter 4 FY 2005-06

- Growth of 40.2% in operating revenues, at Rs. 1511.9 million as against Rs. 1078.0 million.
- Operating margins higher at 20.4% as against 18.4% in the corresponding quarter of last year. Operating Profits higher by 55.2%, at Rs. 308.2 million as against Rs. 198.6 million.
- Net Profit after tax (before share of Joint Venture profits) up 69.2%, at Rs.207.3 million as compared to Rs. 122.6 million.
- Net Profit after tax (after share of Joint Venture profits) at Rs. 248.7 million as against Rs. 166.0 million, an increase of 49.8%.

Source : Equity Bulls

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