The Hindu Business Line : Dip in consulting income, strong rupee tell on i-flex

A DECLINE in revenues from the IT solutions and consulting services segment has led banking software services provider i-flex Ltd to report a flat revenue growth for the second quarter-ended September 30.

While total revenues for the second quarter of fiscal 2003 stood at Rs 187.03 crore (Rs 183.43 crore for June2003), products and related services accounted for Rs 112.57 crore and IT solutions and consulting services amounted to Rs 74.4 crore.

The company showed an 18-per cent dip in net profit at Rs 46.4 crore for the second quarter of 2003 compared to Rs 57 crore recorded during the same quarter last year.

For the half-year ended September 30, i-flex posted a net profit of Rs 92.35 crore as against Rs 89.19 crore the corresponding period last year. Total income for the same period increased to Rs 331.15 crore (Rs 269.14 crore).

According to Mr Deepak Ghaisas, CEO, Indian Operations & CFO, i-flex Ltd, "the current situation relating to the weakening dollar has impacted the entire IT industry. With some good hedging mechanisms, we have been able to minimise our losses significantly this quarter, but the situation remains challenging."

The company added 13 new customers for its Flexcube banking product during the quarter, taking the total number of customers serviced for this period to 432, up from 419 in the first quarter of 2003.

At the upcoming board meeting, scheduled on November 11, the board is expected to take up the proposal for a sponsored American Depository Receipts issue.

The board is likely to take a decision on the size of the ADR issue, which would determine the extent of dilution by the existing shareholders, including Citigroup.

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