Q4 results a mixed bag for 3 key mid-tier IT firms
News | 22 Apr 2013
The divergent patterns exhibited by frontline IT companies are also being reflected in the numbers posted by mid-size firms. Results of three key mid-tier IT companies were a mixed bag during the fourth quarter, conventionally a soft quarter for the IT sector. Persistent Systems and Mindtree posted an increase in net profit, while Zensar Technologies posted a marginal dip on a year-on-year basis. Analysts were expecting the fourth quarter to be muted for both large and mid-cap companies due to the overall weakness in the industry. For instance, Persistent Systems posted a 25.9 per cent rise in consolidated net profit of Rs 52 crore in the fourth quarter ended March 31. It had posted a net profit of Rs 41 crore during the comparable quarter of the previous financial year. In the reporting quarter, the Pune-based company’s revenues rose 23.4 per cent to Rs 334 crore (Rs 270.6 crore in the previous quarter) on a consolidated basis. “Specifically, we have doubled our intellectual property revenues during the year and have seen growth in platform solutions,” Persistent Systems Chairman and Managing Director Anand Deshpande said. Mindtree’s net profit rose 14 per cent to Rs 79 crore (Rs 69 crore) during the quarter ended March, driven by growth in its IT service businesses.
However, on a sequential basis, the company’s net profit dipped 20.1 per cent from Rs 98.8 crore on account of foreign exchange loss of about $2.8 million incurred during the quarter and investments made on increasing headcount across geographies. “In a challenging year, we have delivered revenue growth and better margins. We have also delivered consistently, setting up a platform for continued improvements,” Mindtree Managing Director and Chief Executive Officer Krishnakumar Natarajan said. However, RPG group company Zensar Technologies reported a marginal fall in consolidated net profit at Rs 39.1 crore (Rs 39.2 crore) during the reporting quarter. The company’s total income rose to Rs 511 crore (Rs 500 crore) during the quarter. The companies expect FY14 to be better than the previous financial year. “We observe that the market is growing and clients are investing in new technologies,” Deshpande said,