As the demand for IT-related services increased in domestic and international markets, most information technology (IT) companies reported substantial rises in profits in the third quarter that ended in March, reported the Financial Express.

Eight of the ten IT companies that have so far announced quarterly earnings had seen an increase in revenue, while the profitability of the other two decreased from January through March.

In the January-March quarter, all enterprises combined to earn Tk 393 million in profit, a 30% increase from last year.

Since they do not frequently rely on imports, they were not at risk of experiencing a foreign exchange loss. As a result, unlike manufacturing companies, IT firms barely felt the effects of the taka’s depreciation versus the dollar.

Additionally, the government has made some commendable efforts to support the growth of the IT sector in the nation, and those efforts are already showing results, according to EBL Securities.

For instance, the government has been establishing tech parks to guarantee the accessibility of internet connections and IT services around the nation.

The need for software and IT-enabled services has increased as more small- and medium-sized businesses in the area turn to automation.

Industry sources reported that businesses offering IT-enabled services, such as internet and software services, experienced exceptional growth due to rising demand following the economic shocks brought on by COVID.

One of the top internet service providers, Amara Networks, reported a profit rise of 169 percent from January through March, valued at Tk 62.82 million.

The company’s income increased by 24% year-on-year to roughly Tk 300 million during the quarter, although service costs only increased by 7% to Tk 177 million.

Syed Moniruzzaman, company secretary, revealed that revenue had increased due to successful operations related to IT support, software services, and internet connection sales.

Genex Infosys, which offers information technology-enabled services in national and international markets, reported the highest profit of Tk 85.85 million among the listed IT companies. Profit growth from one year ago was 9.22%.

The company’s chief financial officer (CFO), Md. Jewel Rashed Sarker said that the IT sector would triple in the following five years due to three agreements struck in November of last year.

For the most recent quarter, IT Consultants, which offers services to major banks and financial institutions, reported a 21% increase in profit to Tk 85 million.

An anonymous firm official claimed that because operational costs were lower than the prior year, they could increase revenue.

While running one of Bangladesh’s largest bank-driven independent ATM networks during the quarter, IT Consultants made good money from retailers and government agencies.

ADN Telecom, which offers internet connectivity to consumers of all skill levels through fiber, satellite, and wireless solutions, reported a profit gain of 89% to Tk 65.86 million in the third quarter.

During the period of business expansion, its revenue increased by 34% to Tk 339 million.

An official told FE that the business upgraded infrastructure and set up a data center after raising Tk 570 million in 2019 through an IPO to scale up operations. The action increased revenue for ADN Telecom.

Aamra Technologies and Information Services, on the other hand, saw a 40% and a 32% decline in profits in the three months ending in March.

Foreign clients are becoming interested in the sector due to government assistance in developing IT infrastructure. In a supportive environment, many businesses also chose to expand the scope of their operations.

Russell T. Ahmed, president of the Bangladesh Association of Software and Information Services, said that the industry has room to expand further and has to concentrate on developing a competent labor force.