Infotech shares slip after the firm posts fall net profit

Infotech shares slip after the firm posts fall net profit Stock in Infotech Enterprises slipped 2.85 per cent to Rs 163.75 a share on the Bombay Stock Exchange on Thursday, after the engineering services provider posted a 22.36 per cent fall in profits for the quarter ended March 31.

Net profit slipped a whopping 53.40 per cent to Rs 43.16 crore in the three months ended March 31, as against Rs 92.61 crore in the corresponding quarter of the previous year; even as sales increased 13.89 per cent year-on-year to settle at Rs 263.23 crore in the quarter under review.

The company suffered a decline in income in segments like telecom, aerospace, utilities and heavy transportation. Business also suffered due to a temporary work stoppage in an oil & gas business.

Work stoppage at two divisions of a semiconductor manufacturer client and at a utility customer in the United States also affected Infotech Enterprises' business.

A number of the company's American clients implemented budget cuts, which led to fall in business for Infotech Enterprises.

However, Infotech Chairman & Managing Director B. V. R. Mohan Reddy said he was confident the company would enjoy a significantly better business in the current financial year.