During the quarter ended September 30, 1999, the company had gross revenues of Rs 6.30 crore and a loss of Rs 79.26 lakh as against a gross revenue of Rs 7.89 crore and profit of Rs 96.10 lakh in the preceding quarter.

The first quarter performance in the previous year was a profit of Rs 62.01 lakh on a gross revenue of Rs 4.54 crore. KPIT chairman SB Pandit said the company would recover from the losses during the next two quarters and turn profitable and achieve a 50 per cent growth during the entire year.

During the last year, the company worked with two clients from whom the company earned a third of its revenues especially in the third quarter last year. One of the clients in UK shifted its operations from UK to Ireland reducing the development work carried out by KPIT.

The other client sold a part of its business putting on hold the project KPIT was working on. The sudden loss of business from these two clients has resulted in the losses, Pandit said.

Corrective steps are being taken and the company has decided not to rely only on large value clients only but to increase its client base. "We have added six more clients business from whom will make up for the loss of the two clients, " Pandit said.

The focus will be of deepening client relationship. KPIT is also talking to companies for setting up offshore development centres and will be finalising agreements in around three months time. At the AGM held here, KPIT announced a 15 per cent dividend. This is the first AGM after listing of the company. Revenues increased by 57 per cent and profit by 77 per cent during the year.

Sales and income went up to Rs 25.06 crore from Rs 15.95 crore last year while profit. Profits for the year was Rs 3.36 crore up from the previous year's Rs 1.9 crore.