The Hindu Business Line : Infotech Enterprises declares 1:2 bonus

Infotech Enterprises has recorded revenues of Rs 107.8 crore and net profit of Rs 16.60 crore for the fourth quarter ended March 2006 against Rs 65.17 crore and Rs 8.92 crore for the corresponding previous quarter respectively.

The company has announced a stock split and a bonus offer in the ratio of one share for every two held now. The Infotech board has recommended a dividend of 22.5 per cent pre-bonus and pre-split.

For the fiscal ended March 2006, revenues stood at Rs 362.50 crore (Rs 257.13 crore) and net profit at Rs 50.32 crore (Rs 27.38 crore).

Mr B.V.R. Mohan Reddy, Chairman and Managing Director, said: "The year has been significant for the company as it added about 40 clients, including 10 in the last quarter. We have achieved two significant landmarks towards the close of the year - exceeding Rs 100 crore revenue in a quarter and Rs 50 crore in net profit for the year."

Given the business prospects, and to provide access to company shares to a larger pool of shareholders, the company board has decided to split its stock.

Each Rs 10 share would be split into two shares of Rs 5 each. Alongside, Infotech has decided to reward its shareholders with a bonus offer of one share for every two shares held.

Mr Reddy said that an investment of Rs 1 lakh in the company IPO in 1997 was worth Rs 52.65 lakh as on March 31, 2006.

Expansion, capex

The company added 1,546 employees during the fiscal and currently has 3,978 people on its rolls across various locations. It expects to induct about 1,400 people during the current fiscal.

The foundation stone has been laid for a campus to be built in three phases over a 10-acre site here.

The board meet for the next fiscal-end would be held in the new campus, to be developed to seat 1,000 people in the first phase.

The company has planned a capex of Rs 64 crore this year.

The Infotech scrip ended the day at Rs 630.50 at the NSE against the previous close of Rs 598.

More Stories on : Bonus Announcements | Software

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page