Geometric declares Revenues of Rs 1,293 Mn, PAT up 140.7% Q-o-Q

MUMBAI: Geometric Ltd. (BSE: 532312, NSE: GEOMETRIC) today announced its Q1 results for FY 2009-10. Geometric’s operating revenue in the quarter Q1 FY10 was Rs 1,293.23 Mn (USD 26.61 Mn) as compared to Rs 1,419.65 Mn (USD 28.13 Mn) in Q4 FY09. This decrease in top-line was a result of anticipated ramp-downs in some business engagements and exiting of non profitable projects.

The Profit after Tax (prior to extraordinary items) increased exponentially to Rs 85.23 Mn, a rise of 140.6% from a loss Rs (209.94) Mn last quarter. The Profit after tax after adjustments of extraordinary items was Rs 83.48 Mn as against loss of Rs (205.21) Mn for the previous quarter, a rise of 140.7%.

Geometric has increased its thrust on offshoring resulting in increased offshore revenues. Offshore revenues increased from 59.8% in Q4 FY09 to 64% this quarter.

Highlights for Quarter Ended June 30, 2009

• EPS up from Rs. (-3.30) to Rs. 1.34 from last quarter, an increase of 140.7%
• Improved EBITDA from Rs (-108.53) Mn last quarter to Rs 186.6 Mn this quarter, an increase of 271.9%
• Improved financial leverage from 0.51 to 0.29, over previous quarter, on account of debt repayment

Announcing the results, Mr. Ravishankar G., Managing Director & CEO said, “Inspite of the volatility in the market and a challenging business environment, Geometric’s performance has been in line with its plans, and we are seeing a positive trend in the pipeline. We continue to focus our efforts on delivering value to our customers through leverage of our global delivery infrastructure, strong technology partnerships and operational excellence. We are driving a higher degree of rigor in managing operational efficiencies and costs.”

In the last few quarters, Geometric focused its efforts on driving efficiencies through building on existing customer relationships, leverage of existing competencies; conservation of resources; and building on adjacencies to create opportunities for future growth. With a view to achieve these efficiencies, the company initiated a major internal transformation and restructuring exercise, to drive customer centricity, rationalize infrastructure and costs, consolidate subsidiaries, monetize fixed assets, and restructure capital.

Business Highlights

The Company added eight new customers during Q1, taking the total number of active customers to 101.

Some of the significant contracts are:

• A QA and support engagement for a Software OEM major, for an end customer funded program
• Embedded product development support for a global Auto OEM major
• Program planning engagement for a European industrial major, indicating continuing success in diversification of verticals for our SPE business.
• A product engineering contract from a global agricultural and construction equipment major for its European operations
• First major order of DFMProTM, our Design for manufacturing product, to a European consumer goods major
• Geometric’s first Agile PLM implementation engagement in India for an industrial major

Other important business highlights for the quarter include:

• Alliance with Gerber Technology to tap the fashion and apparel industry
• Addition of Mr. Ajay Mehra, Partner, BMR Consultants to the Geometric Board
• Appointment of Ms. Priya Jadhav as a Vice President to head the finance function of the company