Infotech Enterprises Ltd reports robust growth, to continue momentum throughout the year

Infotech Enterprises Limited has announced that its un-audited financial results for the quarter ended June 30, 2006 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 first quarter results Mr. BVR Mohan Reddy, Chairman and Managing Director, Infotech Enterprises, said, "This quarter has marked the beginning of another fruitful year for Infotech. During the quarter, the Company witnessed growth from marquee customers viz; Pratt & Whitney, Bombardier Transportation and from new customers of last year viz; Alstom Transport, Hamilton Sundstrand etc.

Infotech group reported operating revenues of Rs. 1170 million, representing a growth of 50% over quarter 1, FY 2005-06. The increase is on account of both volume growth as well as increased rates from customers. Depreciation of rupee against the Dollar and other currencies, contributed 4% of growth. Salary and related costs were higher during the quarter on account of revisions across the Company.

We forecast a strong traction in our business for the rest of the year based on the backlog and pipeline. To cater to the new infrastructure needs, we started building another new facility in a 10-acre campus in Hyderabad."
Performance Highlights: Infotech Group consolidated performance

Sequential Period Analysis (April - June 2006 Vs. January - March 2006)

• Operating revenues for the quarter delivered growth of 8.6%, increasing from Rs. 1078.0 million to 1170.3 million.
• Operating profits increased by 10.4%, at Rs. 219.3 million compared to Rs. 198.6 million.
• Net Profit after tax up 19.0% at Rs. 197.5 million as collipared to Rs. 166.0 million.
• EPS for the quarter at Rs. 12.97, up 17.9%.

• Operating Revenues higher by 49.6%, at Rs. 1170.3 Illillion as against Rs 782.2 million.
• Operating profits increased by 62.4% to Rs. 219.3 Million as against Rs. 135.0 million.
• Net Profit After Tax higher by 106.3%, at Rs. 197.5 million compared to Rs.95.7 million.

• 11 new customers added during the quarter, 4 in GSD vertical and 7 in EMI vertical.
• Price increase from customers factored-in during the quarter.
• Witnessed significant ramp up in business from last year´s new customers.
• The erstwhile UTG vertical is re-named as Geospatial Solutions Division (GSD) vertical to highlight the service offerings of the Company and make a global presence.
• VARGIS, subsidiary of Infotech Enterprises America Inc., is re-named in line with its parent company and is now fully integrated into Infotech Enterprises America Inc.
• Net addition of 96 associates during the quarter.
• "Bhoomi Pooja" for the construction of new building in Hyderabad was performed and the construction is in progress.

Source : Equity Bulls

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