Revenues and profits of Megasoft have declined in the second quarter and also in the first half of the financial year.
In the quarter ended June 30, 2012 the revenues dipped to Rs 29 crore against Rs 40 crore in the same quarter last year. Net profit too fell to Rs 1.25 crore from Rs 5.31 crore.
“Decline in revenue is because of loss of one of the largest clients in 2011 which had its first full impact in the first half of 2012. But we have closed two new deals in the second quarter with multi-year revenue potential,’’ G.V. Kumar, Managing Director of Megasoft, has said.
He said the company has implemented cost-control measures and expects some ‘positive’ impact in EBIDTA (earnings before interest, depreciation, taxes and amortisation) in the second half of 2012.
“The first half has been a tough one on the operations of the company. While the company managed to stay operationally cash and profit positive, capex spending is witnessing a slowdown, resulting in slower uptake for the company’s new products and applications,’’ he said, commenting on the results.
For the first half, the Hyderabad-based company reported lower revenues of Rs 59 crore (Rs 80 crore) and a net profit of Rs 4 crore (Rs 12 crore).