Product category: Design and Development Software
News Release from: KPIT Cummins Infosystems
Edited by the Electronicstalk Editorial Team on 23 October 2006

Indian developers log
strong offshore growth

KPIT Cummins Infosystems has announced its results for the quarter ended 30th September 2006

For the quarter ended 30th September 2006, the company earned net profit of Rs 123.48 million, up 61.98% over the corresponding quarter in the previous fiscal and 19.33% over the preceding quarter. Net profit margin has improved to 10.83% of revenues for the quarter, as compared with 10.12% in Q1 2007 and 9.81% in Q2 2006.

EPS for the quarter was Rs 8.30 as compared with Rs 5.30 for the corresponding period of the previous year, an increase of 57%.

Revenue growth for the quarter was also strong.

Total revenues for the quarter were Rs 1140.26 million, reflecting a 46.78% growth over the revenues in Q2 2006 and a 11.50% growth over Q1 2007 revenues.

Growth in offshore revenues has been stronger, up 101.61% over the previous year.

As a proportion of total revenues, offshore revenues increased to 48.07% during the quarter, a 13% increase from the corresponding quarter of the previous year.

The company has witnessed a consistent trend of growth in offshore revenues over the last ten quarters.

During the quarter, the company added five new customers, taking the total active customer base to 82.

These include seven of the top OEMs in the automobile industry, four of the top 10 semiconductor companies of the world and other leading names in the manufacturing and financial services verticals.

There are 16 customers with a revenue run rate of over US $1 million.

For Q2 2007, 62.40% of company's revenue came from the USA, 28.68% from Europe and the balance 8.92% from the rest of the world, including Japan and Asia Pacific.

In terms of growth over the previous year, however, the rest of the world showed the highest growth rate of 148%, followed by Europe with 53% and 36% for USA.

Revenue breakdown by industry vertical was 76.34% from manufacturing, 10.77% from diversified financial services (DFS) and the balance 12.89% from 'others' which included independent software vendors.

DFS vertical has grown by 37% compared with the previous quarter.

During the quarter the company added 265 new employees, taking the total employee strength to 2809.

Commenting on the performance of the company, Ravi Pandit, Chairman and Group CEO, KPIT Cummins, said: 'During the last quarter, we have witnessed a strong revenue growth, especially in the offshore revenues'.

'This has helped us improve our profitability by 62% compared with the previous year'.

'We remain confident of achieving our mission of $100 million by FY07'.

Kishor Patil, Managing Director and CEO, KPIT Cummins, added: ' We are witnessing a strong revenue growth, both in terms of new customer acquisition as well as scaling up of our existing customers'.

'We have 16 customers reaching revenue run rate of over $1 million, demonstrating our ability to scale up new relationships'.

'Our agreement with Renesas to set up 500-plus ODC in India is also a significant landmark for our company and would also open up new avenues for growth in Japan, especially for our advanced technology solutions domain'.

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