IT solutions provider 3i Infotech has pared net losses to Rs 95.96 crore during the quarter ended September 30, compared with a net loss of Rs 191.47 crore in the comparable period a year ago. The company expects to breakeven by the first quarter of next year.
“This is due to the operational efficiencies and due to our cost reduction and workforce rationalisation efforts,” Infotech Executive Director and Group Chief Financial Officer Charanjit Attra said.
3i Infotech had shifted offices out from high cost regions – in Mumbai, Bangalore and Chennai - to low-cost areas in the last 6-8 months and replaced high-cost staff.
The company, which was founded by ICICI Bank, did not renew contracts that were not profitable. Following the rationalisation, the company’s headcount fell to 8,950 by September end from 9,500 a year ago.
However, its income from operations dipped to Rs 328.56 crore during the quarter under review against Rs 339.67 crore.
Its Managing Director and Global Chief Executive Officer Madhivanan Balakrishnan, said: “We are working with our bankers to reduce the interest rate, while we are also looking at reducing debt through operations.”