European technology services firm Indra Sistemas has posted 127 million euros (US$157 million) in net profit for 2017, an increase of a stunning 82% over the previous year.
The sharp surge in profit was largely due to the rising sales at Tecnocom, a Spanish computer services firm that Indra acquired in May last year for US$324 million. Tecnocom contributed US$316 million to the company’s sales figures.
Considering its financial report, Indra’s sales in Latin America increased 16% in the fourth quarter of last year.
This is a huge turnaround for Indra since it laid off thousands of staff in 2016 in an effort to make annual savings of up to US$248 million.
The IT firm, which has extensive operations across Latin America, is a priceless asset for Spain because it supplies technology to the nation’s state-run defense departments.
Founded in 1993 with the merger of four companies (Inisel, CESELSA, Eritel, and Disel), Indra provides technology services to a wide range of sectors, including transport and traffic, energy and industry, government and healthcare, financial services, security and defense, telecommunications, and media.
It grew into a large player in the Latin American IT sector when it acquired a 100% holding in Politec, one of the most prominent IT companies in Brazil.
Today, Latin America represents more than 30% of Indra’s revenue, and the company is said to have employed 15,000 people in the region, where it runs eight software labs and 17 centers of excellence.