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Salary hikes have pushed down net profit of Infotech Enterprises in the first quarter. Its net profit reduced to Rs 27 crore in the quarter ended June 30, 2011, against Rs 33 crore in the same quarter last year.
The reduction was steeper compared with net profit of Rs 37 crore in the preceding quarter. “We gave annual increments to our associates and this is the main reason for our operating margin to decline by 180 bps. Though the net impact of salary hikes was 280 bps, we were able to contain the overall impact on the company at 180 bps backed by volume growth and effective management of margin levels,” Mr B.V.R. Mohan Reddy, Chairman and Managing Director of Infotech Enterprises, said.
The company posted revenues of Rs 346.67 crore in the first quarter ended June 30, 2011, against Rs 252.89 crore in the same quarter last year, showing a growth of 37.1 per cent.
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