Polaris rises as Q4 net profit falls

The performance of this IT company, sequentially has not exactly been encouraging with net profit for Q4FY15 falling 5% (QoQ) at Rs.37 crore and this was on a 1.5% drop in revenue at Rs.468 crore. Previous year financials are not comparable with the current year because of the demerger of the company’s product business. EBITDA for the quarter was down 7% at Rs.51 crore.

The market is enthused despite this performance probably because its margins came in pretty strong at 10.9% v/s 8.21%. It managed to keep a tight leash on costs and that helped shore up the margins despite the topline and EBITDA falling. The company has stated that it managed to get EBITDA where it is despite cross-currency movements and increased contribution towards CSR.

The stock figures out amongst the top gainers of the day currently, up almost 7% at Rs.167.40 with an intra day high at Rs.173. Volumes have spiked up 4 times.