Polaris Software net down 8.8 per cent in Q3

Updated: Jan 24 2002, 05:30am hrs
City-based Polaris Software Lab Ltd has posted an 8.8 per cent decrease in net profit to Rs 15.29 crore for the third quarter ended December 2001, against Rs 16.77 crore for the corresponding period last fiscal. Total income was lower by 2.4 per cent at Rs 72.21 crore (Rs 74.03 crore), according to information available on the Bombay Stock Exchange Website.

The reason for the decline has been attributed to a considerable shift in business from the onsite project model to the offshore projects. The company said that the number of its clients had risen and offshore relationships had become very healthy.

While onsite revenues of the company have fallen to 33.9 per cent (49.30 per cent) of total revenues, while the offshore revenues have increased to 66.1 per cent (50.70 per cent). The billing rates for onsite work stood at almost three times the offshore rates, analysts said.

“Globalisation poses new challenges and for Polaris it has been a learning experience. It has required a significant amount of reflection in the current thinking in the industry and mapping this thought process to the needs of a futuristic organisation. We challenged our own business model nine months ago, and I am happy to say that we have used the current slowdown to build a stronger Polaris that represents dynamic management leadership, high quality processes and capabilities to deliver global solution offerings,” said Polaris Software Lab chairman and managing director Arun Jain.

Polaris Software group’s consolidated revenues (including subsidiaries) are down 1.05 per cent at Rs 75.51 crore (Rs 76.32 crore last year). The group’s net profit has fallen to Rs 14.8 crore (16 crore).