Polaris Financial Technology Posts A Muted Q4FY14 Performance

Polaris Financial Technology (PFTL) today announced its March'14 quarter and year end result during the market hours. The net profit of company got impacted and declined by 10%, at Rs 45 crore against Rs 51 crore in Q3FY14.

Consolidated net sales of company stood at Rs 645.5 crore with a marginal growth of 0.5%.The services segment, which contributes almost 80% to total sales, posted an improvement of 4% on Q-o-Q basis, while the income from its other segment ‘products’ has dropped during the quarter. The muted revenue growth and sharp rise in employee expenses during the quarter on sequential basis, led the EBITDA to fall by 11%, and stands at Rs 109 crore. As a result, the net profit of company got impacted and declined by 10%, at Rs 45 crore against Rs 51 crore in Q3FY14.

PFTL has been able to maintain its margins for its services segment backed by the good growth in the segment during the quarter, whereas, its products segment margins has contracted due to the drop in income followed by the rise in operating expenses.

For the FY14, the topline of PFTL increased by 8% and stood at Rs 2500 crore on YoY basis. EBITDA improved by 7% to Rs 454 crore. However, the bottomline for FY14 decreased by 0.8% and came in at Rs 199 crore against Rs 201 crore in FY13.

Commenting on the Q4FY14 performance, Arun Jain, Founder, Chairman & Group CEO, PFTL said, “We restructured the company into independent Services and Product businesses, with the clear objective of moving to a customer centric organization, and to propel the next level of growth and value creation. Despite the major restructuring exercise the company has undertaken, we have been able to protect our revenues and sustain margin levels.” The management also added that, "We expect to see an upside to EPS in the coming year as hedging losses move out."