GSS Infotech Limited, a global IT services company, today announced its results for the second quarter of FY21, ending September 30th, 2020, on a consolidated and standalone basis.
Financial Highlights - July - September 2020
- Consolidated Revenues from operations were Rs.29.88 Cr. for Q2 FY 21 compared to Rs 29.22 cr. for Q1 FY 21., reporting a QoQ increase of Rs. 0.66 Cr., which is 2.25% from the previous quarter.
- Consolidated PAT stood at Rs. -1.95 Cr. for Q2 FY 21 compared to Rs. -0.94 Cr for the previous quarter reporting a QoQ decrease of Rs. 1.01 Cr. while the PAT margin stood at - 6.54%.
- Standalone Revenues reported Rs. 3.69 Cr. in Q2 FY 21 compared to Rs. 4.11 Cr. the previous quarter, a drop of Rs. 0.43 Cr., which is a decrease of 37.30% on QoQ basis.
- Standalone PAT stood at Rs - 2.13 Cr. down from Rs. - 0.56 Cr. for Q1 FY 2021 while
the PAT margin stood at - 57.90 % for the current quarter.
The results for Q2 FY21 were taken on record at the meeting of the Board of Directors held today 13th November 2020.
During the second quarter, the company maintained its business in terms of Revenues and profitability despite the pandemic situation. Our clients have accommodated the difficulties while the company has ensured that deliveries have been made despite a few delays. The business has largely been stable in terms of contracts, but for a couple of contracts that were moderately effected. While deliveries are being made Collections from clients are mildly affected, due to which the cashflow situation has a direct impact. On the expenses front, there company has made adequate expense adjustments to maintain healthy cashflow.
Speaking on the company's performance, Mr. Bhargav Marepally, Founder and CEO, GSS Infotech Limited said "the revenue pressure because of global economic scenario continues in the quarter, while we were able to maintain the revenues, the reduction of profit is primarily attributed to the settlement of prior period tax assessments till 2013-14.
The board of the company took note of the disclosure given by the Managing Director, Mr. Bhargav Marepally, that he will potentially be a part of a new SPAC (special purpose acquisition company) in the USA. As a part of this effort he will potentially own a portion of the founder shares of the SPAC. He also mentioned that there will be no conflict of interest with GSS and its current business operation globally.
Shares of GSS INFOTECH LTD. was last trading in BSE at Rs.36.9 as compared to the previous close of Rs. 36.9. The total number of shares traded during the day was 834 in over 43 trades.
The stock hit an intraday high of Rs. 37.55 and intraday low of 35.8. The net turnover during the day was Rs. 30777.