During the quarter, it has witnessed significant customer wins in key sectors like Power & Utility, Travel & Hospitality and Education with continuing in roads into BFSI, IT / ITes, Telecom and GPD highlighting the core expertise of offering integrated technology solutions across quadrants. Also, The Services business and Networking solutions have been large contributors with Storage and Servers showcasing accelerated growth in the quarter.

Consolidated Quarterly Performance:

Total revenues grew by subdued 2% YoY to Rs 248.76 crore, which includes other operating income Rs 0.12 crore (down by 97%) for the quarter ended December 2012. At operating level, margins fell sharp 670 bps 4.9% (after adjustments to onetime costs and forex losses) on the back of sharp rise in staff cost (500 bps YoY) and increase in service charges (210 bps YoY) and other expenses (260 bps YoY) despite the fall in consumption cost (330 bps YoY) as percentage to sales and net of stock adjustments. Eventually, Operating profit was down by sharp 57% YoY to Rs 12.26 crore. But after the 402% growth in other income to Rs 3.21 crore, PBIDT fall was 47% YoY to Rs 15.47 crore. With the sharp 212% jump in interest cost to Rs 9.79 crore despite the 4% decline in depreciation to Rs 3.09 crore, PBT before forex loss was down by 89% YoY to Rs 2.59 crore. After adjusting for the forex loss Rs 3.57 crore (as against nil) and EO gain of Rs 17.77 crore (as against nil), PBT was down by 26% YoY to Rs 16.79 crore. Thanks to the fall in effective tax rate by 250 bps YoY to 17.4%, PAT was down by 24% YoY to Rs 13.88 crore.

Consolidated Nine Months Performance:

Total revenues grew by 12% YoY to Rs 783.06 crore for the nine months ended December 2012. However, margins down by 80 bps YoY to 8.4% and accordingly operating profit growth come down to 2% YoY to Rs 65.96 crore. After the sharp 540% growth in other income to Rs 11.77 crore, PBIDT was up by 17% YoY to Rs 77.73 crore. With the sharp 379% jump in interest cost to Rs 25.17 crore coupled with 8% increase in depreciation to Rs 9.18 crore, PBT before forex loss down by 18% YoY to Rs 43.38 crore. After adjusting to the forex loss Rs 3.57 crore (as against nil) and EO gain Rs 10.34 crore (as against loss of Rs 2.02 crore), PBT declined by 1% YoY to Rs 50.15 crore. Thanks to the sharp 58% fall in provision for the taxation to Rs 4.66 crore, PAT was up by 15% YoY to Rs 45.49 crore.

Other Information:

• EO item includes profit on sale of investment aggregating to Rs 26.25 crore towards sale of investments in Aegis ltd during the quarter and 9M ended December 2012. Also, the expenses for setting up of office in USA of Rs 8.48 crore in Q3 and Rs 15.91 crore for the 9M ended December 2012 respectively.
• Other operating income includes write back of provisions/liabilities aggregating to Rs 9.50 lakhs in Q3 and Rs 589.39 lakhs for the 9M ended December 2012.
• The tax expense includes Rs 4.75 crore write back of excess tax provision on completion of assessment relating to earlier years for the nine months ended December 2012.
• The Company has allotted 14,233,232 bonus shares in the proportion of 1:1. One new equity bonus share of Rs 10/- each is issued for every 1 existing equity share of Rs 10/- each fully paid-up by capitalization of share premium account based on share holdersf approval.

Mr. Kunjal Mehta, Vice President, Finance said: "Constant focus on delivering operational efficiency to our customers has led to maintaining our profit margins despite tough economic environment. While the business growth in domestic market is intact, we will continue to focus on expanding our solution offerings to build a long term growth strategy."