Date:27/10/2007 URL: http://www.thehindubusinessline.com/2007/10/27/stories/2007102750480400.htm

Back i-flex net falls on higher expansion costs

Our Bureau

Mumbai, Oct. 26 Higher costs associated with expansion and infrastructure have caused the city-based IT services firm i-flex Solutions Ltd to report a 6.5 per cent fall in net profit for the quarter ended September 30.

The company, which is majority owned by Oracle Corporation, posted a net profit of Rs 87.4 crore as against Rs 93.5 crore recorded in the September quarter a year ago.

Revenues from operation were up by 15.3 per cent to Rs 575.8 crore (Rs 499.2 crore).

“The dip was because of higher costs related to setting up of our subsidiary in Greece, stock-based compensation to employees and higher wage costs,” Mr Makarand Padalkar, Chief Financial Officer, told Business Line on Friday.

However, on a sequential basis, the company’s net profit was up by 138.1 per cent while net revenues climbed by 12.1 per cent.

During the quarter, i-flex earned new licence fee signings of $22 million and added 13 new customers across its products and services division, said a communication from the company. Staff strength for the company at the end of September 2007 was 10,778 with a net addition of 1,245 people during the quarter.

The i-flex scrip was up by 2.2 per cent on the BSE today to close at Rs 1,585.45.