KPIT Cummins’ growth impetus remains firm

Strengthens Leadership in Focus verticals; Deepens Customer Engagement.

Revenue for the year grew by 36% to Rs. 7931 Mn.

Net profit for the year grew by 28% to reach Rs. 658.52 Mn.

Pune : KPIT Cummins Infosystems Ltd. (BSE: 532400; NSE: KPIT) an IT consulting and specialist solutions partner to Global Manufacturing corporations today announced its results for the Quarter and the year ended March 31, 2009. The company has met its INR revenue and profit guidance for the year.

The company recorded total revenues of Rs. 7931Mn for FY09, a growth of 36% over the previous year and earned a Net Profit of Rs.658.52Mn. For the quarter ended March 31, 2009, the Company recorded revenue of Rs. 2097Mn, reflecting a year-on-year growth of 28%.

Commenting on the Company’s performance Ravi Pandit, Chairman and Group CEO said: “In the last 6-8 months, the Manufacturing and Finance industries have witnessed unprecedented uncertainty. We had identified challenges quite early and had initiated proactive measures to enhance value for our customers while retaining our focus on increasing utilization, optimizing costs and productivity improvement. As a Result of this we have significantly improved our operating margins with a Y-o-Y increase of 150% in EBITDA. The next year will continue to be a challenging year for our customers. We would therefore have a cautious outlook towards revenue and have sharp focus on maintenance and improvement of our level of profits. At the same time we will continue to invest in people and technology development. During the last fiscal, the relevance of our services to our customers has only increased; we want to continue to enhance this position.”

Kishor Patil, CEO and Managing Director: “In FY 09, we deepened our engagement with our customers, delivering innovative solutions in a challenging environment. We proactively aligned with their changing needs and near-term business objectives. This coupled with focus on technology and providing best –in-class solutions, we have managed to enhance their confidence. We have also been able to improve our customer satisfaction scores. This is reflected in our revenue growth of 36% (INR terms) and 20% (USD terms) and over 90% repeat customers.

"Our business strategy of attaining leadership position through focus on select industries while continuing to diversify geographically is yielding encouraging results. We will continue to make strategic investments in select areas to enable us partner with our customers for higher value creation."

FY09 Highlights:

Revenue for FY09, in INR, was 7931 Mn; a growth of 36% over FY08
Revenue for FY09, in USD was 174.10 Mn; a growth of 20% over FY08
EBITDA for FY09 grew by 150% over FY08
Net profit for FY09 was Rs. 658.52 Mn; a growth of 28 % over FY08
No liabilities in future on the 3 derivative contracts. MTM on the contracts is nil, now and in the future.

For Q4 FY09 utilization improved from 94.45% to 95.24% Q-o-Q for onsite and from 70.28% to 71.41% Q-o-Q for offshore.

Total Revenue for Q4FY09, in INR terms, was 2097 Mn; a Y-o-Y increase of 28%
Revenue for Q4 FY09, in USD terms was 42.37 Mn; a y-o-y growth of 2.94%
Net Profit after Tax for Q4FY09 was Rs. 193.18 Mn; a y-o-y growth of 85.85%

Customer Value Enhancement through Technology Innovation and Vertical

Focus Strategy

Automotive
An Automotive Tier 1 customer selected KPIT Cummins as a Hybrid Engineering Consulting partner. This reinforces our Positioning as a provider of cutting edge technology solutions.
A leading Asian Tier 1 customer entered into a long term partnership with us in the area of Instrument Clusters. We will be providing complete end-to-end solution development for Instrument Clusters as part of the engagement. Industrials
A Leading Engine manufacturer is integrating its Manufacturing and Product Management Systems on KPIT Cummins’ MES-ERP-PLM integration methodology.

We are the only company to have 3 SAP certified solutions for Discrete Manufacturing space (Auto, Industrial Machinery & Components (IMC) and Hi-Tech.

20+ Indian Manufacturing companies chose KPIT Cummins’ SAP implementation expertise for their end-toend SAP Implementation projects.
Hi-Tech

For a leading European semiconductor company we have started working on a key engagement for design and verification of a next generation Automotive System on chip (SoC).

Won a major development contract involving a series of VLSI chip design projects for Next Gen Microcontrollers from a leading European semiconductor company.
Successfully delivered a set of Analog IP development projects to provide the peripheral functions like Data converters, Clock circuits, Power circuits used in the Micro Controller Unit (MCU), to an Asian Semiconductor product leader in Automotive and Consumer electronics.

Diversified Financial Services

A leading provider of payment services has signed a long tem ODC contract with us for its critical Data Transformation Services Project.
Successfully delivered an end to end offshore development project in e-business for a leading South Africa based enterprise solutions integration company.

Developed an integrated payment switch for a European independent payment processing firm.