Apr 26, 2011

Geometric declares Net Profit of Rs. 575.21 Mn for FY11 - up 23.3% from the previous year

Consolidated revenues for the year rise 21.3%.

MUMBAI: Geometric Ltd announced its Q4 and annual results for FY 2010-2011 at the board meeting held today.

Highlights for financial year ended March 31, 2011 (FY11)

* The company’s consolidated revenues rise 21.3% to Rs. 6,206.12 Mn for the year, as against
Rs. 5,115.62 Mn last year
* USD revenues rise 26.2% to USD 136.47 Mn from the previous year
* FY11 net profit increases 23.3% to Rs. 575.21 Mn, compared to a profit of Rs. 466.60 Mn in FY10
* Revenue contribution from the US increased from 63.3% to 72.8%, signifying the revival of the geography after the recessionary trends seen in the previous year
* EPS of Rs.9.24 in FY11, as against Rs. 7.51 in FY10
* Added 33 new customers during the year
* Recommended dividend of 60% on face value of Rs. 2 per share, by the board of directors

Highlights for the quarter ended March 31, 2011 (Q4 FY11)

The company recorded operating revenues of Rs. 1,700.30 Mn for the quarter ended March 31, 2011, a rise of 4.2% and 33.7% compared to revenues of Rs. 1,632.02 Mn in last quarter, and Rs. 1,271.71 Mn in the same quarter last year, respectively. In US dollar terms as well, consolidated revenues increased 4.4% Q-o-Q and 35.9% Y-o-Y to USD 37.84 Mn.

The company saw an increase in operating profits to Rs. 153.20 Mn in Q4FY11, as against profits of Rs. 134.52 Mn in Q3FY11 and Rs. 119.23 Mn in Q4FY10, a rise of 13.9% and 28.5% respectively. Net profit of the company rose to Rs. 178.43 Mn in the quarter, a 16.8% increase from the subsequent quarter’s profits of Rs. 152.73 Mn, and a 50.8% increase from Q4FY10 profit of Rs. 118.36 Mn.

The company had a total employee strength of 3905 employees as of March 31, 2011, including its subsidiaries.

On declaring the results, Mr. Manu Parpia, Managing Director & CEO said, “The results of FY11 have been exceptional. They reflect the growing demand for our solutions and services, which we see continuing for the foreseeable future. The focus of the coming year will be improvement in margins, especially as the tax holiday is over. Therefore, our efforts will be directed at ensuring we continue to grow revenues and simultaneously improve our margins.”

Business outlook

“At the moment the company is not in a position to provide a guidance for the next year. However, revenue is expected to be flat or slightly lower when compared to the previous quarter due to delays in commencing projects. As the company proposes salary increase in line with market conditions, we expect pressure on margins in the first quarter”, he added.

Key wins and additional business highlights for Q4 FY11

The company added 5 new customers during Q4, and 33 new customers during the year; taking the total number of active customers to 100. Some of the significant wins in this quarter are:

* A multiyear contract for development and maintenance of CAD/DMU & PLM for an aerospace major
* A Greenfield Oracle Agile PLM implementation program for a leading Indian pharmaceuticals company
* Offshore-based AMS services on Teamcenter for a leading oilfield products and services company in the US
* Development of an integrated manufacturing process planning application for a global leader in construction and off-highway equipment
* A large software product development project for a leading machine tools manufacturer in Europe. Project won after successful completion of a solution definition and design consulting engagement with the same customer
* An annual contract for press tool design services for a leading European industrial equipment manufacturer

Other important business highlights for the quarter include:

* NASSCOM IT Innovators 2011 recognition for the fourth consecutive year for a design process innovation
* Opening of the first Canadian office in Montreal
* Release of version 8.0 of eDrawings Professional for Pro/ENGINEER, RapidFire Lite, Solid Edge and Google SketchUp