Aztecsoft marks $23 Mn loss in the first Quarter

Aztecsoft marks $23 Mn loss in the first Quarter

By SiliconIndia   |   Friday, 25 July 2008, 13:18 Hrs
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Bangalore: The brutal rupee depreciation phenomena took its toll on the software services firm Aztecsoft, who reported 9.29 crore losses in the first quarter ended June 30, 2008. The depreciation led to a non-cash charge of 22.24 crore being provisioned on the outstanding derivative instruments of the company.

The software firm also reports a foreign exchange loss of 20.23 crore for the first quarter of FY09 as against a gain of 5.7 crore in the corresponding quarter of FY08. Despite the losses incurred, a phenomenal surge in its revenue to 76.77 crore is seen, thus marking a 30 percent year on year (YoY) increase, which projects strong demand of its clients. As Samir Bodas, CEO Aztecsoft said, "Given the macro economic environment, we remain cautious, but are very well prepared operationally to capture the demand." With an addition of another six clients, its active clients' number rise to 75."

However, the net result of the rupee depreciation was a gain for many firms who hedge their revenues and receivables in the forex derivatives market. There is Wipro with a net profit of 907.80 crore as against 725.60 crore thus indicating a 25.11 percent rise in YoY basis. Even Satyam Computer Services had a net profit of 3.78 billion. Satyam has also achieved $637.3 million revenues, marking a 40.9 percent YoY increase and a sequential increase of 3.9 per cent.

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