Oct 21, 2011

Geometric Ltd. Q2 FY 2011-2012 revenues rise 10.7% Q-o-Q

MUMBAI: Geometric Ltd. (BSE: 532312, NSE: GEOMETRIC), announced its Q2 financial results for FY 2011-2012 at the board meeting held today.

Highlights for the quarter ended September 30, 2011

* Consolidated revenues rise to Rs. 1912.30 Mn a rise of 10.7% from Rs. 1,726.89 Mn in Q1FY12; and up 25.9% from Rs. 1,519.31 Mn in Q2FY11
* In dollar terms, revenues rise 7.3% and 26.2% from Q1FY12 and Q2FY11 respectively to USD 41.40 Mn
* Operating Profit more than doubles to Rs. 200.83 Mn compared to last quarter’s profits of Rs. 99.76 Mn
* Added six new customers, and new business worth USD 8.16 Mn

The company recorded PAT (after extraordinary items) of Rs. 133.89 Mn, an increase of 14% from Rs. 117.41 Mn in the last quarter. The company’s PAT (before tax on sale of asset and prior period items) also rose by 67.5% and 47.9% to Rs. 200.91 Mn from Rs. 119.98 Mn in Q1FY12 and Rs. 135.88 Mn in Q2FY11, respectively. The company had to bear an extraordinary expense of taxes on an asset sold to its subsidiary, which impacted the after tax income. Without taking into account extraordinary items, the company achieved an EPS of Rs. 3.20 for the quarter. This figure however included an unrealized foreign exchange gain of approximately Re. 1 /share mainly due to revaluation of its US subsidiary.

On declaring the results, Mr. Manu Parpia, Managing Director & CEO said, “We have had a very good quarter both in terms of top-line and bottom line growth. We remain committed to the goal of improving the profitability of Geometric (excluding the joint venture), and our initiatives have helped us improve our margins this quarter.”

The company, including its subsidiaries, had over 4200 employees at the end of the quarter.

Key wins and additional business highlights for Q2 FY12

The company added six new customers during Q2; and new revenues of USD 8.16 Mn. Some of the significant wins in this quarter are:

* Design and implementation for integrated BOM management process on a leading PLM platform for an automotive major in North America
* Engagement with the Indian subsidiary of a global aerospace tier I supplier for computer aided engineering
* Engagement with a large Japanese marine engine manufacturer for product design and development
* Project for CAx applications and manufacturing engineering to global locations for an off-highway industry leader
* Won an Engineering Data (Matlab/MathCAD) Migration project with a leading oil and gas engineering company in Italy
* Won a technical documentation project for manufacturing work instructions with a leading industrial gas turbine company
* Successfully engaged with a leading North American machine tool company for designing their next generation water jet machining application
* Strengthened the engagement with a world leading earthmoving equipment company for data consolidation opportunity at the customer’s China site

Other important business highlights for the quarter include:

* Signed a ‘Qualified Supplier Agreement’ with a world’s leading oil and gas engineering company for providing end-to-end engineering solutions
* Received Frost & Sullivan’s 2011 Global Enabling Technology in Computer Aided Design for DFMPro
* Recognized as one of the five fastest growing CAM vendors in 2010 by CIMdata; also projected to be the five fastest growing companies for 2011
* Release of DFMPro version 3.1 for Creo Elements/Pro
* Employed a leading consulting firm to help us in a major initiative to transform the Company. The benefits from this initiative are already visible but will have a significant impact in FY 13

Geometric 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 6.21 billion (US Dollars 136.47 million) for the year ended March 2011. It employs over 3900 people across 11 global delivery locations in the US, Romania, India, and China. Geometric was assessed as CMMI 1.1 Level 5 for its software services and is ISO 9001:2008 certified for engineering operations. The company’s operations are also ISO 27001:2005 certified.