Angel Broking has given a 'Buy' recommendation for 3i Infotech.The Q1 profit of the company has risen by 107%, aided by higher-margin software products and cost cuts. The company made a consolidated net profit of Rs 21.35 crore for Q1 on total revenue of Rs 133 crore, up 48% y-o-y.New clients and increased business from the existing clients has added to the company's revenue. Branded software contributed 47% to the revenue with the rest coming from services.Business process outsourcing contributed 6% to revenue, but the company hopes to increase the share in the coming quarters. Net profit margin improved to 14% of revenue in the quarter compared with 10.5% a year ago.Earnings per share also rose to Rs 3.05 from Rs 1.37 a year ago. The company also acquired a 51% stake in back-office outsourcing firm Delta Services (India) for Rs 5 crore ($1.07 million).The stake acquisition in Delta is expected to enhance the company's profits in the current fiscal itself.
