Polaris Consulting & Services, a Virtusa company, on Thursday reported a 27.88% drop in consolidated net profit for the September quarter and declared that its CEO Jitin Goyal has resgined to pursue other interests.
The IT firm has recorded a consolidated net profit of R41.14 crore for the quarter ended September as compared to R57.05 crore that it logged in the same quarter last fiscal.
The firm said that the company board has accepted the CEO’s resignation. “I would like to thank Jitin for his many contributions, and also for building a strong platform that will allow Polaris to grow in the banking and financial services industry,” said Polaris chairman Kris Canekeratne.
Total income of the company decreased to R506.72 crore during the quarter as compared to R542.49 crore in the corresponding period last year. Canekeratne said, “Our Q2 revenue and EBITDA grew sequentially by 2.3% and 4.7% respectively. The growth was driven largely by growth in our principal business segment, banking and financial services which grew by 8.1%. I would like to take this opportunity to thank all of the Polaris team members for their hard work and dedication towards executing against our strategic goals.”
NM Vaidyanathan, CFO, Polaris, said, “In dollar terms our top-line improved by 2.3% on a sequential basis during the quarter. Our PAT improved by 3.6% compared to Q1 FY2017. This improvement in the profitability was primarily driven by higher revenues and higher utilisation levels coupled with cost rationalisation initiatives.”
“We will stay focused on driving the business forward, and we expect higher one-time integration related costs to impact us in the second half of the year. Our continued execution on improving collections is evident from considerable growth in cash and cash equivalents and investments during the quarter. Proceeds from the sale of property also contributed to the growth in cash balance.”