Polaris Financial Technology (formerly Polaris Software Labs) has reported a two per cent increase in net profit to Rs 55.13 crore for the second quarter ended September 30, 2012 compared with a profit of Rs 53.93 crore for the corresponding quarter last year.
Revenue grew by 18 per cent year-on-year to Rs 599 crore (Rs 510 crore).
FT Sourcing business grew 21 per cent on a year-on-year basis to Rs 448 crore, contributing 75 per cent of the overall revenues. During the quarter, three large outsourcing deals have been signed up with two leading European banks and one US major.
Intellect business (the product business) grew by 13 per cent on a quarterly basis to Rs 150 crore and 8 per cent on a year-on-year basis, contributing 25 per cent of the overall revenues. Nine new Intellect wins were recorded in this quarter, says a company press release.
Arun Jain, Founder, Chairman and CEO, Polaris Financial Technology Ltd, said, “Global Transaction banking business now contributes 35 per cent of revenues with over 60 per cent gross margin, reflecting our leadership position in this space. This is a result of the careful investments made five years ago, backed by superior delivery.”
“We are looking to build the chosen product portfolios to the right margin levels. Our recent acquisition of Pyxis is in line with building our competitive edge in the complex world of derivatives and capital markets,” he said in the release.
Employee cost
During the second quarter, the employee cost increased by nearly 15 per cent to Rs 416 crore (Rs 360 crore) mainly due to a salary hike to nearly 50 per cent of the employees. The remaining employees will be covered during the rest of the financial year, Jain told analysts while discussing the financial results for the quarter.
The business funnel stood at $755 million (product – $444 million and services $312 million), he said.
On the BSE, the stock price of Polaris closed at Rs 128, up by Rs 2.15 or 1.71 per cent over the previous day.