Date:29/10/2005 URL: http://www.thehindubusinessline.com/2005/10/29/stories/2005102902010700.htm

Back Investments impact i-flex net in Q2

Our Bureau

Mumbai , Oct. 28

I-FLEX Solutions Ltd has reported a 42.5 per cent increase in net profit for the second quarter ended September 30, 2005; however the consolidated net profit for the quarter showed a marginal decline.

"While the quarter witnessed a healthy topline growth, investments in infrastructure, people and sales and marketing had some impact on the margins," said Mr Deepak Ghaisas, CEO, India Operations and CFO at i-flex.

The company's standalone net profit for the quarter was Rs 53.1 crore as against Rs 37.3 crore reported for the corresponding year-ago quarter. Total revenues rose by 35 per cent to Rs 272.8 crore (Rs 201.87 crore).

On a consolidated basis, the company's net profit fell to Rs 38.4 crore from Rs 41.8 crore. Consolidated revenues rose by 37 per cent to Rs 349.7 crore from Rs 255.8 crore.

Selling and marketing expenses amounted to Rs 55.5 crore (Rs 31.6 crore) and general administrative expenses Rs 41.6 crore (Rs 26.8 crore).

As a result, income from operations showed a 12.6 per cent decrease, to Rs 42.8 crore (Rs 49 crore).

There was a strong growth momentum in all lines of business, said a news release from the company. The consolidated net profit for the half-year ended September 30, 2005 was Rs 61.1 crore, down from Rs 74.9 crore for the half-year ended September 30, 2004. Total revenues for the period increased from Rs 382.5 crore to Rs 484 crore.

The board of directors has allotted 60,402 ESOP 2002 equity shares of face value of Rs 5 each to the applicant employees of the company.

The scrip closed at Rs 877.45 on the BSE, up 14.7 points from Thursday's close.