Operating profit at ` 586 million, highest ever quarterly operating profit, an increase of 35% over ` 435 million for previous quarter and an increase of 28% over ` 457 million for Q-2 of previous year

• Ø Revenue for the quarter at ` 3,726 million, Y-o-Y growth of 26%, Q-o-Q growth of 7.5%.
• Ø Operating profit at ` 586 million, highest ever quarterly operating profit, an increase of 35% over ` 435 million for previous quarter and an increase of 28% over ` 457 million for Q-2 of previous year
• Ø Operating margin at 15.7% for the quarter, increase of 320 bps over Q-1 and 20 bps over Q-2 of previous year
• Ø Profit after tax at ` 307.4 million for the quarter, an increase of 14.5% over previous quarter
• Ø Strong revenue growth in N&CE and ENGG verticals at 8.1 % and 7.1% respectively over Q-1
• Ø ENGG revenues crossed ` 250 crores in a quarter for the first time and $ 100 million for the first half of this year
• Ø Business momentum and environment continues to be stable in line with the expectations especially in - Aerospace, Heavy equipment, Utilities, Hitech, and Telecom

Commenting on the results, Mr. BVR Mohan Reddy, Chairman and Managing Director, said, "For the quarter, we had strong revenue growth and equally strong margin expansion. We had highest ever revenues and operating profit in a quarter in the history of the company. The growth and margin expansion has been across the verticals and across the geographies. Our focus on operational excellence delivered higher margin for current quarter. ENGG revenues crossed $ 100 million for the first half of this year. Our associate strength crossed 9000 mark, another milestone in the history of the company, after making a net addition of 400 during the quarter.

In spite of the macro-economic challenges, we have not seen any signs of our customers cutting down projects or giving us indications of contraction in business. Next year budgets for outsourcing spend as indicated by our customers is robust.

Order backlog and pipeline have been the best in the history of the company. In the second half of the year, we would hire 1000 additional resources to cater to growing business.

We are aggressively pursuing acquisitions to increase our footprint in geographies. We will continue to focus on operational excellence and are confident of improving margins further in coming quarters.

We will see continued revenue growth and margin expansion in coming quarters but we are taking all our decisions on capital investments, hiring etc. with "cautious optimism"."

Business and Operational Highlights

ü New Business & Services Offerings -

• 11 customers added during the quarter, 4 in N&CE and 7 in ENGG.
• Two large size MSAs, each with a potential to grow over 200 FTEs were signed during the quarter.
• Key wins in Telecom, Utilities and Content Engineering
• Entered into partnership with Software Engineering Institute (SEI), USA to globally offer services pertaining to the Smart Grid Maturity Model.
• Signed a development partner agreement with Echelon Corporation, an acknowledged technology leader in the areas of smart metering, automated metering infrastructure and utility solutions.
• Entered into a contract with Southern California Edison, a leading investor owned utility, for the deployment of an integrated GIS solution to support transmission business operations.

ü Awards and recognitions -

• Received "The Award for Innovation in Retention Strategy" by the Asia's Best Employer Brand Awards 2011.
• Signed an MoU with Indian Institute of Technology, Hyderabad.
• Our Chairman, Mr. B.V.R Mohan Reddy, received the prestigious ASME (American Society of Mechanical Engineers) Leadership Award 2011.

ü New facilities -

• Commenced operations in our new facility at IT SEZ at Kakinada, A.P.

Source: Press release distribution via India PRwire

Notes to Editor

Company Overview: Established in 1991, we are a leading Global Engineering services company. We provide services to a wide range of industries - Aerospace, Rail, Automotive, Marine, Energy, Oil & Gas, Plant Engineering, Consumer Electronics, Medical Electronics, Semiconductor, Telecom (Manufacturers) Computing industries, Utilities, Telecom (operators) and Government. Infotech has a distinctive business model: "Global Delivery and Collaborative Engineering". We operate "Centres of Excellence" for leaders in key industries. We combine the extensive engineering design and solutions capability based in India with global delivery through our offices worldwide providing local customer interface and project management.

Our cutting edge is our industry specific domain expertise, people and processes, technologies, tools and training. We draw on this strong foundation to create measurable business impact for customers around the world, resulting in long-term relationships with several of the most recognized names in their respective industries. Many of these are among the fortune 500 companies.

Our processes are aligned with practices of ISO 9001:2008, ISO 27001:2005, AS 9100C, IRIS, ISO 13485 quality standards and CMMi Level 5 framework.

We are a (INFOTECENT in BSE - Bombay Stock Exchange and in NSE - National Stock Exchange) listed company with equity participation from globally reputed investors. For more information, please visit www.infotech-enterprises.com

Disclaimer - This document contains certain forward looking statements on our future prospects. Although, Infotech believes that expectations contained in these statements are reasonable, their nature involve a number of risks and uncertainties that may lead to different results. These forward looking statements represent only the current expectations and beliefs and company provides no assurance that such expectations will prove correct.

All the references to Infotech's financial results in this update pertain to the company's consolidated operations comprising overseas wholly-owned subsidiaries Infotech Enterprises Europe Ltd., (IEEL); Infotech Enterprises America Inc., (IEAI); Infotech Enterprises GmbH (IEG); Infotech Enterprises IT Services Pvt. Ltd (IEITS); Infotech Enterprises Japan KK; Joint Venture Infotech HAL Ltd (HAL JV) and the partially-owned subsidiary Infotech Geospatial (India) Ltd (IGIL).

Income statement provided is in the internal MIS format. MIS format is different from the income statement published as part of financial results in terms of grouping of cost elements.

For more information, please contact:
Ankush Chavan (Senior Media Executive) (L) 09869785684