Hyderabad: Infotech Enterprises Limited announced its unaudited financial results for the quarter ended September 30, 2009.
Commenting on the results, Mr. BVR Mohan Reddy, Chairman and Managing Director, said, "I am pleased to announce that the company has delivered a strong performance in the second quarter of the financial year 2009-2010. Although the global macro-economic condition continued to be volatile during the quarter, we saw revenues at Rs. 2,374 million ($ 49 million) recording a 2.1% increase over the sequential quarter and a 7.2% increase over corresponding quarter of the preceding year. We have been able to sustain our operating margins at encouraging levels of 21.7%, which is a 110 basis point improvement over corresponding quarter of the preceding year. This was achieved on account of operational excellence and continued focus on cost control measures during difficult operating climate.
Despite global macro-economic challenges, our overseas subsidiaries have continued to show strong sustainable performance. IEEL revenues have grown by 32%, IEAI by 8% and IEG by 16% year-on-year. We witnessed stable revenue contribution from both North American and European geographies during the quarter. We continue to make in-roads in the Asia Pacific-India-Middle East region.
Our top 10 customers have increased their revenue contribution, a sign of strengthening long-term partnerships.
Both vertical segments, UTG and EMI, have shown growth of 11% and 5% respectively year-on-year and 2.8% and 1.7% respectively quarter-on-quarter.
Our continued efforts in strengthening existing relationships as well as breaking into new market segments has enabled us maintain healthy order flows and order pipeline.
General aviation business especially business jets and smaller engine aircrafts world-over are facing consequences of the global economic meltdown; however, aircraft structures and engine business of larger aircrafts are not impacted as OEM's either continue with their already started new programs or embark on new programs. Infotech's aerospace business on account of completions and finishing work for general aviation market is marginally impacted; however, our aerospace structures and engine business for larger OEM's/Tier-I suppliers remain strong and growing.
We are in the final short list of large, long-term deals which continue to make us believe that with the right value proposition clients are willing to deep dive into dialogue - 'We are not out of woods but we can see the turf'.
We completed the amalgamation of our wholly-owned subsidiary, TTM India Pvt. Ltd. into IEL. We believe that this amalgamation will bring about better business and operational synergies.
We have a strong balance sheet with cash balance of Rs. 364 crores."
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