Pentafour Software Q3 profit up 100 pc

the operating profit increased to Rs 52.56 crore (Rs 31.13 crore). Gross profit moved to Rs 47.55 crore (Rs 26.16 crore), up 81.80 per cent. Depreciation grew by 38 per cent to Rs 11.80 crore from Rs 8.55 crore as a result of change in the policy depreciating computers at an accelerated pace. Net profit increased by more than 100 per cent to Rs 35.75 crore from Rs 17.61 crore.

Interest and finance charges increased to Rs 7.98 crore from Rs 5.06 crore and gross block additions during the year stood at Rs 5.05crore. The company employed 1,971 people as on December 31, 1998.

The current order book stands at $140 million comprising $75 million from the multimedia segment and $65 million from business software segment which will be executed in 15 months.

According to Pentafour chairman and managing director V Chandrasekaran, the company has moved up the value chain and is confident of posting at least a 50 per cent growth in the next two years.

The multimedia segment’s contribution to the turnover has increased by 94.6 per cent for the nine months ended December 31, 1998, as against the corresponding period last year. It consists of two SBUs – 2D/3D special effects and CBT/CD titles multimedia products. The former has contributed 42.4 per cent to the turnover and the SBU has an order worth $57 million to be executed by March 2000. The order is from New Media Ventures and Interactive Film Works, both US firms.

The company has also tied up with Price Waterhouse to oversee the 29.3 lakh shares proposed to beoffered by way of preferential allotment after the shareholders’ approval is obtained at the extraordinary general meeting scheduled for February 1. The consultants will also monitor the deployment of funds in pre-paying the borrowings.