Zylog Q2 net up 49% to Rs 21cr

Zylog Systems reported 49% rise in net profit at Rs 20.98 crore for the quarter ended September 2007 (Q2FY08) when compared with Rs 14.10 crore in the corresponding period a year ago, on the back of higher operating margins.

For the second quarter of this fiscal revenues of the company rose 44% to Rs 152.12 crore from Rs 105.63 crore in the same period previous fiscal. EBITDA rose 57% to Rs 28.50 crore when compared with Rs 18.13 crore in the second quarter of previous fiscal.

On a sequential basis, net profit was up 7.82% and revenues rose 16.47% when compared with figures in the first quarter of the fiscal. Operating profit of the company was up 13.13% when compared with the first quarter of the current fiscal.

For the half year ended September 2007, net profit soared 58% at Rs 40.44 crore when compared with Rs 25.53 crore in first half of previous fiscal. Revenues rose 46% to Rs 283.97 crore from Rs 194.60 crore while EBITDA was up 63% to Rs 53.69 crore when compared with Rs 32.95 crore.

With the addition of 18 new clients in the second quarter, the total client base stood at 164. Zylog added 272 people, taking the total head count to 1421 as on September 30, 2007.

The EBIDTA margins have also seen an improvement at 18.74% for the half year up from 17.13% for March 31, 2007. This was mainly due to hike in billing rates by around 4% for this period. We have also not been greatly affected by the rupee appreciation due to a combination of natural hedging and the dollar working capital facility that we have with our bankers, Ramanujam Sesharathnam, MD & COO, Zylog Systems, said.