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Our Bureau

Chennai, Jan. 23 Lower billing rate owing to rupee appreciation combined with cost structure increase have resulted in Polaris Software Lab reporting a 41-per cent dip in net profit for the quarter ended December 2007 as compared with the same quarter last fiscal.

EBITDA (earnings before interest, depreciation and taxes) for the quarter, at 12.45 per cent of total income, was 6.07 percentage points lesser than last year’s EBITDA (at 18.52 per cent of total income).

“Plus last year (for the December quarter) we were billed at Rs 45.61 a dollar, while this year it has been Rs 39.47 a dollar,” said Mr R. Srikanth, Executive Vice-President and Chief Financial Officer, Polaris. Combined with increased cost structure, Polaris’ EBITDA was down by about 600 basis points (bps).

Rupee appreciation is also the result of its marginal increase in total income for the quarter compared with last year. “In dollar terms, we have registered a 6 per cent increase in revenue, but in rupee terms it is only 2 per cent,” he told Business Line.

The company won 14 new deals in the December quarter of which 6 were led through its product business, Intellect. Intellect contributed about 20 per cent to Polaris revenues for the quarter. Two high-end consulting assignments – one for the markets and banking division for a US-based Fortune 10 bank and another for the asset management division of a leading Wall Street bank – were also completed during the quarter, a press release said.

For the nine-month period ended December 2007, the company reported consolidated revenues of Rs 827.34 crore, about Rs 63 crore more than the figure reported for the same period last year. However, net profit fell by about 35 per cent to Rs 51.76 crore.

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