Press Release Summary: KPIT Cummins Infosystems have announced their Q2 FY08 results.
· Registers double digit growth (qoq) in both topline and bottom-line
· Strong volume growth: 41.13% yoy & 13.35% in Dollar terms
· Bags 3 new star customers
Press Release Body: KPIT Cummins Infosystems Ltd (BSE: 532400; NSE: KPIT), an IT, engineering and BPO partner of first choice for global corporations , today announced its results for the quarter ended 30th September, 2007, showing strong growth in all major markets and practice areas-especially Automotive Electronics, Business Intelligence & Global Business Solutions.
Topline Growth
In US$ terms, revenues over the last quarter same year grew by 41.13% while sequential growth was 13.35%. Total revenues for Q2FY08 were Rs. 1492.42 Million, reflecting a 30.88% growth over the revenues in same quarter last fiscal and 10.31% growth over the revenues of previous quarter.
Profit Growth;
For Q2 FY08, the Company earned a Net Profit of Rs. 140.72 Million, a growth of 13.97% over the corresponding quarter in the previous fiscal and 10.94% over the preceding quarter.
Highlights of the Quarter
Overall performance:
Automotive & Semiconductor
Ø KPIT Cummins was chosen as a strategic partner by a top 10 Asian Tier-1 supplier in a global selection process to co- builds it's advanced electronic systems for global vehicle platforms thus enabling faster time to market. This is a multi-year deal with annual revenue potential of US$ 10+Mn in next 24-30 months.
Ø KPIT Cummins partnered with a leading Automotive software company to co-provide high-end Hardware-in-Loop solution for world's top 5 car maker.
Ø KPIT Cummins was selected to build an end to end FPGA (Field Programmable Gate Arrays) design solution for an Automotive Tier-1 supplier in Germany.
Global Business Solutions
Ø World's leading middleware software company has engaged KPIT Cummins as a partner to provide multi-lingual Enterprise Software Support services from its Poland and India centers. This is a multi-year deal with annual revenue potential of US$ 5 + Mn in next 24 months.
Enterprise IT
1)Business Intelligence practice had a sterling quarter with several wins:
a. Signed a new contract with a leading French Corporation for building a financial reporting system.
b. Bagged a multi-year/multi-million dollar assignment from a top 5 customer for providing Business Intelligence Services & solutions
This quarter witnessed a lot of accolades & recognitions for KPIT Cummins
Customers & Markets
¨ Became the first and only Indian company to be invited to JASPAR (Japan Automotive Software Platform & ARchitecture) consortium. JASPAR is a consortium formed by leading Japanese Automotive corporations to define the standards for next generation in-vehicle electronic systems architecture.
¨ Electronica Machine Tools, a KPIT Cummins customer was selected among the top 100 innovative CIOs of the year by CIO magazine for demonstrating innovative application of IT for furtherance of business objectives. This was done for an innovative implementation of SAP by KPIT Cummins in a record time of 4 months.
¨ EFY (Electronics For You) TOP 100 survey ranked KPIT Cummins amongst top 100 focused providers of Electronics Systems & Solutions.
¨ An independent industry analyst recognized KPIT Cummins among the select Business Process Outsourcing services provider in the F&A (Finance & Accounting) domain for Investment Services firms.
Operational Excellence
Winner in Support category at the National level Lean and Six Sigma Excellence Awards 2007 jointly organized by Sakaal group of publication and Symbiosis Center Of Management and HRD (S C M H R D). KPIT Cummins was the only company among the 14 IT/ITeS contestants selected for this award. 81 companies across various industry verticals participated in this competition.
Corporate Governance
¨ Only IT company to be selected for the Golden Peacock award for excellence in Corporate Governance-by the World Council for Corporate Governance & Institute of Directors (UK & Delhi)
¨ KPIT Cummins has been recognized as one of India's most investor friendly Companies, as endorsed by a study carried out by Business Today (Aug 2007 issue). KPIT Cummins stands in the Top 10 amongst 20 companies across sectors
¨ Chairman, Ravi Pandit was conferred the Rotary Excellence Award by Rotary Club of Pune, Kothrud
Commenting on Q2 performance:
Ravi Pandit, Chairman & Group CEO said:
"We had a very encouraging Q2 with lot of customer wins at higher rates, improvement in our operational efficiencies and double digit volume growth over the last quarter. Our Poland center registered its first major win this quarter. Our competitive positioning in the Automotive & Semiconductor verticals is strengthening every quarter as we sign up new accounts and expand our relationships with existing customers. In spite of the foreign currency depreciation, we have found our way to protect margins. We will continue to work on options to better them in forthcoming quarters."
Kishor Patil, CEO & Managing Director expressed his pleasure
"Our investment in practices like Business Intelligence & Global Business Solutions (BPO) is paying off with several multi-year deals with US$ 10+Mn annual potential signed this quarter. Automotive Electronics & Semiconductor practices continue to demonstrate leadership in marketplace with significant wins. We have three US$ 10 Mn + deals in pipeline over next 4-6 months and we look forward to a strong performance in quarters to come. Europe & Asia-Pacific demonstrated sizeable wins. We have also experienced better price realizations in our new wins by a factor of 12-15%."
Girish Wardadkar, President & Executive Director commented on robust operational performance
"Utilization has improved to 74% this quarter from 71% last quarter. We are effectively leveraging Six Sigma as a tool to improve our operational performance. Around 250+ engineers have joined us fresh out of campus and we will focus on their training + deployment in coming quarters. We hired 338 people this quarter. Annualized attrition at the end of H1 was down to 21% from 24% last year. As part of our innovation initiative-CREST, we filed our first patent this quarter. As we get into H2, we will continue to see success of several operational & technology initiatives launched in earlier quarters"
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