Financial Daily from THE HINDU group of publications
Tuesday, Oct 28, 2003
Info-Tech - Financial Performance
Aftek's Q1 net up 31%; upbeat on products
Mumbai , Oct. 27
AFTEK Infosys Ltd, occupying the enterprise wide business management solutions space, has posted a net profit of Rs 13.08 crore in the first quarter of the fiscal year 2004, a rise of 31 per cent as compared with Rs 9.96 crore posted in the same period of the previous year.
Net sales during the quarter (ended September 30) stood at Rs 31.11 crore, a 55 per cent growth as compared with Rs 20.11 crore for the corresponding previous quarter.
The company attributed the improved profitability to an overall growth in its products and services business.
Operating profit at Rs 13.88 crore rose by 35 per cent (Rs 10.32 crore).
A rise in the share of its services business to the total turnover (75 per cent in first quarter of this fiscal as against 60 per cent for the coreesponding period last fiscal had squeezed operating margins to 44.11 per cent (49.66 per cent), the company said. However, an expected rise in revenues from products business should stabilise margins at the prevailing levels, it added.
Aftek's investment in the Munich-based Arexera Information Technologies GmbH had helped it to expand to markets outside the US and Japan. Income from operations in Europe contributed 42 per cent of net income as compared with 28 per cent for the first quarter of the previous year. Also, services income surged by 94 per cent during the same period. Even on a sequential basis, services income registered a 21 per cent growth.
The US, which is the largest market for Aftek's products business, was showing signs of emerging from a slowdown, it said.
Income from products sales stood at Rs 6.49 crore (Rs 6.95 crore). The company is also ramping up its US operations.
The power crisis situation in the West has elicited a number of business enquiries for Aftek's flagship product, Powersafe, as well as for HP Openview, the second offering in the Enterprise Wide Infrastructure Management Solutions space.
While exports currently contribute 96 per cent of the total revenues, domestic business, stood at Rs 1.31 crore, an increase of 12 per cent.
Mr Ranjit Dhuru, Chairman, said: "Our strategy of derisking by diversifying our geographical revenue base has worked well. Having achieved a critical mass in our services business, our focus now is to boost the products business. The blackout situation in the US and the power crisis in some parts of Central Europe have come as a shot in the arm for our power management solution products. We are also confident of tying up with global UPS (uninterruptible power supply) manufacturers to emerge in the products space."
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