Geometric declares revenues of Rs. 1,354.50 Mn; an increase of 6.5% Q-o-Q
Geometric Ltd. (BSE: 532312, NSE: GEOMETRIC) today announced its Q1 FY 2010-2011 financial results.
Tweet-- Geometric Ltd. (BSE: 532312, NSE: GEOMETRIC) today announced its Q1 FY 2010-2011 financial results.
Highlights for quarter ended June 30, 2010
- Revenues in dollar terms stood at USD 29.59 Mn; up 6.3% sequentially and 11.2% Y-o-Y
- US Engineering Services business achieved breakeven as against a loss in the last quarter and for FY10
- Improved productivity and utilization rates from 87.6% in Q1FY10 to 89.5% in the current quarter
- New business of USD 9.22 Mn
- Added nine new customers this quarter
- Added 425 new associates in the quarter
- Opened a sales office in Sweden for tapping the growth potential of the Nordics region
- Plans for commencing operations from our first SEZ facility in Bangalore
- An EPS of Rs. 1.70
Geometric declared operating revenues of Rs. 1,354.50 Mn this quarter, a rise of 6.5% from the previous quarter revenues of Rs. 1271.71 Mn; and a 4.7% rise from revenues of Rs. 1293.23 Mn in the same quarter last year. The company declared a profit after tax of Rs. 105.85 Mn as compared to Rs. 83.48 Mn in the same quarter last year, a Y-o-Y rise of 26.8%.
Announcing the results, Mr. Ravishankar G., Managing Director & CEO said, "The revenues and order pipeline as seen in this quarter gives an optimistic outlook for the year, though we expect the markets to continue to be volatile.
Our US engineering services business, which was significantly impacted due to the slowdown in the automotive sector, has achieved breakeven this quarter. Efforts in reorganization, and increased offshore leverage has made a positive impact on the business, and going forward, we see this business playing a critical role in increasing the overall Geometric portfolio. Compared to last quarter, our profits for the quarter have declined, but this was an expected drop due to salary hikes given this quarter as a part of the annual appraisal cycle, and additional provisions on account of change in gratuity laws."
With the manufacturing sector showing indications of a recovery, Geometric has strengthened its sales efforts, by augmenting its sales and relationship management teams in the US. It has also augmented its European sales team to cater to the Nordics and DACH region (Germany, Austria and Switzerland). It also strengthened its global automotive vertical, a key vertical, with appointment of Joseph Sahiouni, an automotive industry veteran of 25 years, to drive growth in this segment.
At the end of the quarter, the company had an employee base of 3,144.
Business Highlights
The Company added nine new customers during Q1, and at the end of the quarter, it had 108 active customers, including 18 customers with million dollar plus revenues. Some of the significant wins this quarter include:
- An engineering services contract for packaging design for a leading auto OEM in US
- A product data management support engagement for a leading automotive company in US
- An engineering services engagement for BIW and chassis design for a leading auto OEM in US
- A product engineering contract for a leading tire manufacturer in US
- A tear-down operation support and supplier collaboration support contract for a leading Off-highway equipment manufacturer in US
- A PLM product implementation support contract in Europe
- A product development engagement with a leading machine tool manufacturer in Japan
- A PLM maintenance and support contract for an hi-tech manufacturer in APAC
- Interoperability and CAA support contract for a leading Asian auto major
Other important business highlights for the quarter include:
- Projected as one of the five fastest growing CAM vendors in 2010 by CIMData
- Release of CAMWorks 2010
Notes to Editor
About Geometric
Geometric (www.geometricglobal.com) is a specialist in the domain of engineering solutions, services and technologies. Its portfolio of Global Engineering services and Digital Technology solutions for Product Lifecycle Management (PLM) enables companies to formulate, implement, and execute global engineering and manufacturing strategies aimed at achieving greater efficiencies in the product realization lifecycle.
Headquartered in Mumbai, India, Geometric was incorporated in 1994 and is listed on the Bombay and National Stock Exchanges. The company recorded consolidated revenues of Rupees 5.11 billion (US Dollars 108.1 million) for the year ended March 2010. It employs close to 3000 people across 11 global delivery locations in the US, France, Romania, India, and China. Geometric is assessed at SEI CMMI Level 5 for its software services and ISO 9001:2000 certified for engineering operations.
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