Geospatial Solutions Boosts Margins For Rolta India In Second Quarter
Geospatial applications major Rolta India Ltd. posted a decline of 7.9 percent in consolidated total income from operations at Rs 737 crore quarter-on-quarter but curtailed expenditures in one of its key segments helped the company expand margins on earnings before interest and taxes (EBIT) by more than 380 basis points to 22.9 percent for the second quarter of financial year 2016-17 sequentially. This led to growth of 134 percent in profit to Rs 54 crore.
Company's consolidated cost of materials decreased by 7.2 percent to Rs 282 crore, and while its finance costs remained high at Rs 122 crore for the quarter, they also decreased sequentially when compared to Rs 129 crore in the previous quarter.
Earnings boost for the quarter was provided by the enterprise geospatial and engineering solutions segment which saw 23 percent revenue growth at Rs 244 crore and the segment's EBIT which grew 112 percent to Rs 142 crore sequentially. It was the company's system integration & enterprise IT solutions segment which put pressure on its performance posting a decline of 18 percent in revenue at Rs 493 crore and EBIT which declined 40 percent.
Reacting to its earnings, the stock surged over 17 percent in trade with volumes at 27 times its 20-day average on the National Stock Exchange.
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