Engineering design and geospatial information services company Infotech Enterprises Ltd reported a 6.62 per cent drop in its net profit to Rs 32.99 crore for the quarter-ended September 30, 2010, as compared with Rs 35.33 crore during the same period last year. Revenues during the quarter stood at Rs 295.47 crore, up 24.46 per cent from Rs 237.40 crore last time.
Company chairman and managing director B V R Mohan Reddy said utilities, telecom and government (UTG) and engineering verticals grew 15.8 per cent and 13 per cent respectively. Revenues from North America and Europe increased.
The operating margin for the quarter was 15.5 per cent. “We had wage pressure but all adjustments are now complete,’’ he said, adding the manpower cost accounted for 62 per cent of the turnover. During the quarter, the company acquired Wellsco Inc, a telecom engineering company, in the US. Wellsco contributed Rs 8.49 crore to the revenues.
The new centre of excellence it opened at its special economic zone at Visakapatnam has become operational. Infotech has a cash balance of Rs 362 crore, according to a release.
The share price of the company ended at Rs 174.75, down 7.50 per cent from the previous close of Rs 189.05 on the BSE.