Infotech Enterprises, which has seen a year-on-year growth of 26 per cent in its second quarter revenues at Rs 372.6 crore (Rs 295 crore), has said that it has not seen any signs of customers cutting down projects or “giving us indications of contraction in business”.
“Next year budgets for outsourcing spend as indicated by our customers is robust,” Mr B.V.R. Mohan Reddy, Chairman and Managing Director of Infotech Enterprises, said.
With growth prospects remaining bright, the company would hire 1,000 employees in the second half that would take the total number past 10,000. The cost of employees went up to Rs 235 crore (Rs 187 crore) in the quarter. In the second quarter, the company made net additions of 400 (after factoring in attrition).
Its operating margin for the second quarter was put at 15.7 per cent (15.5 per cent) and net profit at Rs 30.7 crore (Rs 33 crore). The quarter also saw operating profit of Rs 58.6 crore.
Quarter on quarter, its revenues went up by 7.5 per cent from Rs 347 crore and net profit up by 14.5 per cent from Rs 26.85 crore. Operating margin in the first quarter was at 12.5 per cent.
“We had highest ever revenues and operating profit in a quarter. The growth and margin expansion has been across the verticals and across geographies. Our focus on operational excellence delivered higher margin for the quarter,” Mr Reddy said.
It added 11 customers in the quarter, with telecom, utilities and content engineering registering key wins.
The scrip of Infotech went down by 1.46 per cent and closed at Rs 114.95 on the BSE on Wednesday.