BackInfotech Enterprises Q1 net profit down 16.07%
Net profit falls to `54.31 crore as customers scale down their businesses in recent months
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Hyderabad: Engineering services provider Infotech Enterprises Ltd’s quarterly net profit fell 16.07% to ₹ 54.31 crore as customers scaled down their businesses in recent months. Revenue in the June quarter grew 6.03% to ₹ 483.93 crore.
Infotech had earlier this year said that it had been hit as clients facing challenging market conditions in the semiconductor, natural resources, utility and off-highway segments reduced business or even terminated contracts.
But the company signalled these problems may be over.
“Challenges that we had in the last two quarters with few of our large customer engagements and uncertainties in global economies are behind us," B.V.R. Mohan Reddy, chairman and managing director of Infotech, said in a statement on Thursday.
Infotech Enterprises added 10 customers in the June quarter and opened a new office in Taiwan to tap the semiconductor market there.
“Infotech reported weak set of results on the revenue as well as bottom line front," said Ankita Somani, research analyst (information technology and telecom) at Angel Broking Ltd.
“The ebitda (earnings before interest, taxes, depreciation, and amortization) margin of the company declined by 46 basis points qoq (quarter-on-quarter) to 16.6% as the gains on the back of rupee depreciation got absorbed by the headwinds of wage hikes given during the quarter," she said. A basis point is 0.01 percentage point.
Infotech’s stock rose 0.6% to ₹ 184.10 on BSE while the benchmark Sensex gained 0.9% to close at 20,128.41 points.
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