Infotech Enterprises surged 3.93% to Rs 344.20 at 15:11 IST on BSE after Chairman and Managing Director Mr. BVR Mohan Reddy gave positive future outlook for the business at the time of announcement of the company's Q3 December 2013 results.
The Q3 result was announced during trading hours today, 16 January 2014.
Meanwhile, the S&P BSE Sensex was down 39.10 points or 0.18% at 21,250.39.
On BSE, so far 64,000 shares were traded in the counter as against average daily volume of 48,543 shares in the past one quarter.
The stock was volatile. The stock surged as much as 8.09% at the day's high of Rs 358 so far during the day. The stock rose 1.23% at the day's low of Rs 335.30 so far during the day. The stock had hit a record high of Rs 363 on 8 January 2014. The stock had hit a 52-week low of Rs 157 on 16 May 2013.
The stock had outperformed the market over the past one month till 15 January 2014, advancing 12.06% compared with the Sensex's 2.77% rise. The scrip had also outperformed the market in past one quarter, galloping 46.97% as against Sensex's 3.61% rise.
The mid-cap company has equity capital of Rs 55.95 crore. Face value per share is Rs 5.
Infotech Enterprises' consolidated net profit declined 4.3% to Rs 69.39 crore on 5.3% growth in revenue to Rs 578.37 crore in Q3 December 2013 over Q2 September 2013. Operating profit rose 4.5% to Rs 113.61 crore in Q3 December 2013 over Q2 September 2013. Operating profit margin declined to 19.6% in Q3 December 2013, from 19.8% in Q2 September 2013.
The company added 801 employees on gross basis and 319 employees on net basis in Q3 December 2013.
Commenting on the results, Mr. BVR Mohan Reddy, Chairman and Managing Director, Infotech Enterprises said: "After four quarters of flat business, we saw significant growth in our business for this quarter. All the four business units grew, three of which recorded the highest ever quarterly revenue. Our margins were flat owing to significant investments that we are making in future sustainability and growth of business, which include both additional manpower and one time initiatives. We are seeing increasing traction and spend from our customers across the world. While overall growth is driven by the growth in top-20 customers, I am happy to note that this is across industries and the customer base. Future looks promising as reflected in current order backlog and pipeline. We are confident of a stronger H2 and equally strong FY 2015 on revenue, operating margins and net profit".
Mr. Ajay Aggarwal, CFO, Infotech Enterprises said, "Our efforts towards continued improvement in key financial metrics resulted in a milestone quarter. We generated our highest ever free cash flow in a quarter at Rs 67.10 crore. Our free cash flow as percentage of operating profit stands at 62% for the quarter and 46% on last 9 months basis. This is a significant expansion over our last 3 years average of 23% for the same ratio. Cash generation was driven by 4 days reduction in DSO, continued capex optimization and further improvement in tax rate. Our strategy with higher focus on collection cycle, efforts towards capex optimization and improved SEZ deployment, we are confident to achieve better performance on key financial parameters".
Infotech Enterprises provides engineering solutions, including product development and life-cycle support, process, network and content engineering to major organizations worldwide.
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