Infotech Enterprises - 3QFY2014 results - Angel Broking

Views of Ms. Ankita Somani (Research Analyst -IT, Angel Broking) on Infotech Enterprises 3QFY2014 results:

"Infotech Enterprises reported strong set of results on revenue as well as on the operating front but bottomline disappointed a bit due to forex losses. The dollar revenues grew by whopping 6.5% qoq (highest in last ten quarters) to US$93.3mn. Growth trajectory resumed for company after four quarters of flat business with all the four business units posting more than 3% sequential growth in dollar terms. In INR terms, the revenue came in at Rs. 578cr, up 5.3% qoq. The EBITDA margin of the company declined marginally by 15bp qoq to 19.6% (estimate - 19.4%), driven by robust volume growth as well as operational efficiencies. PAT came in at Rs. 69cr, down 4.3% qoq, impacted by loss at other income level of Rs. 5.8cr as against gain of Rs. 8.3cr in 2QFY2014. The company added 11 customers during the quarter. Management indicated that the company has a healthy deal pipeline visibility across all services offerings to sustain the growth momentum. Owing to recent sharp run-up in the stock price, we maintain our Neutral rating on the stock."

Source : Equity Bulls

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