While software segment is facing the heat of global slowdown, Polaris Software Lab Limited performed well for the third quarter of current financial year. The company provides application development solutions to banking, finance and insurance sector.

The company posted 94 per cent increase in net profit despite low demand in IT segment and tight liquidity conditions. The board of company has decided to pass 30 per cent dividend to shareholders.

The chairman and CEO of company, Arun Jain said, "In the current environment, rate cut and client uncertainty have become a reality. All our offerings are anchored on mission critical applications."

It earned Rs 372.58 crore for the quarter ended December 31, 08 and reported net profit of Rs 37.17 crore. This indicates 32 per cent increase in revenue and 94 per cent increase in net profit.

Polaris CFO, R Srikanth said, "Increasing the cash balance is a dedicated focus and it has been achieved through an increase in actual cash profit and managing costs effectively. The DSO (day's sales outstanding) has also come down from 62 days to 52 days."

The company is optimistic to report 20 per cent growth in dollar terms for the financial year 2009-2010. Shares of company ended the day 1.9% lower and closed at Rs
43.45 at NSE on Wednesday.