Polaris profit down by 28% in March quarter - Times of India

BANGALORE: Software firm Polaris Financial Technology Ltd on Saturday announced its March quarter results, posting a fall of 28% in net profit, from Rs 61 crore in the same quarter last year to Rs 44 crore this year. This included Rs 4.5 crore accruing from the sale of an associate company. The revenue of the company stood at Rs 542.8 crore, up 5% compared to Rs 516.7 crore in the March quarter last year. "The year has been quite a challenging one as we have had to face vendor consolidation in engagements that are purely focused on cost rationalisation. On the other hand, we have had some exciting wins in the ""value-build"" engagements. Given that these two situations offset each other to some extent, we have not been able to grow as aggressively as we had planned," said Arun Jain, chairman & CEO of Polaris. The company also announced in its BSE filing that it will sell is 85.30% stake in IdenTrust Inc for which it received an order from the Committee of Foreign Investment in the US. The filing said that "Pursuant to an order received from the Committee of Foreign Investment in the US, the boards of directors have made a decision to sell its investment in IdenTrust Inc and are in the process of finalising a prospective buyer and completing the transaction. Management is confident of being able to complete the transaction shortly and expects a positive re turn on such sale."" For the overall year, revenue grew in rupee terms by 13% year on year, from Rs 2049 crore to Rs 2308 crore but remained flat at $426 million in dollar terms. Net profit for the year stood at Rs 201 crore compared to Rs 220 crore last year, a fall of 8.6%. Natarajan Narayanasamy, Group CFO, Polaris Financial Technology Limited said, ""Our growth engines have now reached critical mass and the next phase of our journey would see sharper focus on leveraging the potential of these engines by tapping the right investment levers. The business has been able to generate and grow cash reserves from Rs. 390 crore to Rs. 490 crore." Polaris share closed 0.52% down at Rs 114.50, on BSE. The Board of Directors have recommended to the shareholders a Final Dividend of 100% (Rs 5 per equity share) for the Financial Year ended on 31st March, 2013. V Balaraman has also been inducted as an Additional Director to the Board, effective 27th April, 2013. via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNHPbfu4VLZHlylWGay5SLN6STIZOQ&url=http://timesofindia.indiatimes.com/tech/tech-news/software-services/Polaris-profit-down-by-28-in-March-quarter/articleshow/19759000.cms

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