Date:30/10/2004 URL: http://www.thehindubusinessline.com/2004/10/30/stories/2004103001010700.htm

Back i-flex Q2 net down 28.7 pc

Our Bureau

Mumbai , Oct. 29

I-FLEX Solutions Ltd has reported a 28.7 per cent decrease in net profit for the quarter ended September 30 largely on account of a steep increase in cost of revenues.

Net profit amounted to Rs 37.27 crore, down from Rs 52.2 crore during the corresponding previous period.

Revenues rose 19.5 per cent to Rs 201.8 crore (Rs 168.85 crore), according to the notice sent by the company to the stock exchanges.

"We are continuing to build our manpower, grow our infrastructure, invest in enhancing our portfolio and expand the global spread of our operations," said Mr Deepak Ghaisas, CEO (India Operations) and CFO, in a statement.

As per the consolidated results under Indian GAAP, net profit dipped 16.2 per cent to Rs 41.7 crore (Rs 49.8 crore).

This is despite revenues rising 36.9 per cent to Rs 255.8 crore (Rs 187 crore). Billing rates showed an increase of five per cent, a company release said. Cost of revenues rose 78.2 per cent to Rs 141 crore (Rs 79.1 crore). Gross profit showed a 6.4 per cent increase to Rs 114.8 crroe (Rs 107.9 crore).

Selling and marketing expenses stood at Rs 31.6 crore (Rs 28.2 crore), while depreciation and amortisation amounted to Rs 7.5 crore (Rs 3.5 crore).

Income from operations at Rs 48.9 crore showed a 11.7 per cent dip, down from Rs 55.3 crore.