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Apr 21, 2010

Infotech Enterprises FY 2010 revenues up 7.1% at Rs. 9,531 million

Infotech Enterprise has delivered a stable revenue performance at Rs. 2,441 million as compared to Rs. 2,391 million in the previous quarter, recording a 2.1% increase over the sequential quarter and a 3.9% increase over corresponding quarter of the preceding year.

Mumbai - Infotech Enterprises Limited, a global services provider offering Engineering Design Services, Geospatial Information Services and IT Services, announced its audited financial results for the year and quarter ended March 31, 2010. Infotech Enterprise has delivered a stable revenue performance at Rs. 2,441 million as compared to Rs. 2,391 million in the previous quarter, recording a 2.1% increase over the sequential quarter and a 3.9% increase over corresponding quarter of the preceding year. In $ terms, we delivered revenues of $ 53 million, recording a 3.7% increase over the sequential quarter and a 12.6% increase over corresponding quarter of the preceding year. For the full year FY 2010, we recorded revenues of Rs. 9,531 million, which is a 7.1% increase over FY 09. The company achieved two major milestones in the history of the company this year - the total income for the year has reached Rs. 1,000 crores (Rs. 9,994.9 million) and revenues for the year have crossed $ 200 million.

KEY HIGHLIGHTS

* FY10 Total Income (including other income) reaches Rs. 1,000 crores (Rs. 9,994.9 million), a major milestone in company's history
* FY10 Revenues at Rs. 9,531 million, growth of 7.1% over FY09
* FY10 Revenues cross $ 200 million, a major milestone in company's history
* Operating margins for FY 10 at 21.9%, an improvement of 180 basis points over last year

- FY10 PBT crosses Rs. 2,000 million. PAT at Rs. 1,708 million, growth of 84.7% over FY 09

- FY10 EPS at Rs. 30.9 from Rs. 17.4 in FY 09.

- Revenue for Quarter-4 Rs. 2,441 million, Y-o-Y growth of 3.9%, Q-o-Q growth of 2.1%

- Revenue for Quarter-4 $ 53 million, Y-o-Y growth of 12.6%, Q-o-Q growth of 3.7%

- Operating margins for Quarter-4 at 21.6%

- PAT for Quarter-4 at Rs. 513 million, Y-o-Y growth of 185%, Q-o-Q growth of 35%

- The Board of Directors recommended 40% dividend, i.e. Rs. 2 per equity share of Rs. 5 each, subject to the approval of shareholders

- The Board of Directors recommended a 1:1 bonus i.e. one bonus share for every share held - Strong financial performance despite global financial meltdown and adverse currency markets

- Unified leadership in EMI vertical under Krishna Bodanapu- Business momentum and environment continues to be in line with expectations for key verticals - Manufacturing, Telecom and Hitech

Mumbai, India - April 21, 2010: Infotech Enterprises Limited, a global services provider offering Engineering Design Services, Geospatial Information Services and IT Services, announced its audited financial results for the year and quarter ended March 31, 2010.

Update Coverage:

* Management Comments
* Highlights for Quarter-4

Performance Highlights

Business and Operational Highlights

Detailed Financials

Other Performance Metrics

* Highlights for FY 10

Performance Highlights

Business and Operational Highlights

Detailed Financials

Other Performance Metrics

* Overview of the Company

Note : All the references to Infotech's financial results in this update pertain to the company's consolidated operations comprising overseas wholly-owned subsidiaries Infotech Enterprises Europe Ltd., (IEEL); Infotech Enterprises America Inc., (IEAI); Infotech Enterprises GmbH (IEG) ; TTM Institute of Information Technology Pvt. Ltd, Infotech Enterprises Japan KK; Joint Venture Infotech HAL Ltd (HAL JV) and the partially-owned subsidiary Infotech Geospatial (India) Ltd (IGIL).

Management Comments

Commenting on the results, Mr. BVR Mohan Reddy, Chairman and Managing Director, said, "We delivered a stable revenue performance at Rs. 2,441 million as compared to Rs. 2,391 million in the previous quarter, recording a 2.1% increase over the sequential quarter and a 3.9% increase over corresponding quarter of the preceding year. In $ terms, we delivered revenues of $ 53 million, recording a 3.7% increase over the sequential quarter and a 12.6% increase over corresponding quarter of the preceding year.

For the full year FY 2010, we recorded revenues of Rs. 9,531 million, which is a 7.1% increase over FY 09.

We achieved two major milestones in the history of the company this year - the total income for the year has reached Rs. 1,000 crores (Rs. 9,994.9 million) and revenues for the year have crossed $ 200 million.

Despite the last year being extremely challenging for the industry due to global financial meltdown and adverse currency markets, we have been able to improve our operating margins by 180 basis points over last year. We have also shown strong volume growth in both our business segments and we grew in all geographies we operate.

We are seeing good momentum in Manufacturing, Telecom and Hitech segments. Our revenue contributions from Top 10 customers have increased year on year and this indicates strong customer relationships and confirms their confidence in us. We continue to de-risk our revenue contribution through our excellent geographic spread.

We signed long term engineering services contract with Seawell for setting up an engineering design centre. Seawell is a global oilfield service company and provides drilling services and well services to Oil and Gas companies worldwide.

We continue to have a strong balance sheet with cash balance of Rs. 383.6 crores."

Update on Q-4 FY 10 Performance

Performance Highlights - Q4 FY10

(All numbers in INR Million, except % data)

ParticularsQ4 FY 10Q3 FY 10Q-o-QQ4 FY 09Y-o-YOperating Revenue2,440.62,390.72.1%2,349.73.9%Operating Profit 526.1 517.91.6% 509.03.3%Operating Margin 21.6% 21.6% 21.7% PAT 513.3 379.1 185.4

(All numbers in US$ Million, except % data)

ParticularsQ4 FY 10Q3 FY 10Q-o-QQ4 FY 09Y-o-YOperating Revenue53.151.33.7%47.212.6%Operating Profit11.511.13.6%10.212.7%Operating Margin21.6%21.6% 21.7% PAT 11.28.1 3.7 Average Exchange Rate (US$ vs INR)45.9246.64 49.76

* In Rupee terms, Revenues are at Rs. 2,440.6 millions for the quarter; Y-o-Y growth of 3.9%, sequential growth of 2.1%.
* In $ terms, Revenues are at $ 53.1 million for the quarter; Y-o-Y growth of 12.6%, sequential growth of 3.7%.
* Operating margins are at 21.6%.
* In Rupee terms, Net Profit is at Rs.513.3 millions for the quarter as against Rs.379.1 million in the sequential quarter.
* In $ terms, Net Profit is at $ 11.2 million for the quarter as against $ 8.1 in the sequential quarter.
* Other Income of Rs. 179.0 million includes Forex gain of Rs. 107.1 million -

Gains on honoring matured forward contracts - Rs. 18.1 million

Reversal of MTM provision - Rs. 61.7 million

Restatement of forward contracts taken during the year - Rs. 90.5 million

Loss on currency translation - Rs. (63.2) million

Business and Operational Highlights - Q4 FY10

- New Business & Services Offerings -

*
o Signed long term engineering services contract with Seawell for setting up an engineering design centre.
o Several key wins in Utilities, Telecom and Government segments.
o Infotech and SA2 Worldsync launched Global Data Synchronisation (GDS) initiative for India.
o 13 customers were added during the quarter, 5 in UTG and 8 in EMI.
*
o New service offerings / initiatives:
* UTG - FTTm (Fibre to the meter), Smart Grid technologies, Directional Survey;
* EMI - Should cost analysis.

- Quality and other certifications -

*
o Rail groups achieved IRIS (International Rail Industry Standard) certification.
o AS 9100 and ISO 9001 certification received by Infotech HAL Limited, our Joint Venture company.

- Organisation Development -

*
o Unified leadership in EMI vertical under Krishna Bodanapu.
o Sundar Viswanathan joins as new CFO; S. Nataraja to continue as Advisor to CMD after attaining the age of superannuation.

- Facilities -

*
o Inaugurated a local telecom engineering design centre in Dallas, Georgia, USA.

- Investments and Cash -

*
o Cash balance stood at Rs. 3,836 million as against Rs. 3,954 million as at end of Q-3. The details are as follows :

Current & EEFC Accounts - Rs. 852 million

Deposit Accounts - Rs. 1,481 million

Liquid investments - Rs. 1,503 million

*
o Capital Expenditure of Rs. 61 million during the quarter and Rs. 291 million for the year.

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