Geometric Ltd. (BSE: 532312, NSE: GEOMETRIC) announced its Q1 financial results for FY 2013 - 2014 at the board meeting held today.
Highlights for the quarter ended June 30, 2013 (Q1 FY14)
· USD Revenue rises 1.4% Q-o-Q
· In Rupee terms, consolidated revenues benefited from the depreciation of the Rupee to rise 5.3% Q-o-Q to INR 2,602.75 Mn from INR 2,471.26 Mn in the previous quarter. Geometric’s revenue at the end of the corresponding quarter last year stood at INR 2,608.20 Mn
· Reduction in attrition rate to 11% this quarter due to strong employee engagement focus
· EPS for the quarter is INR 2.44
The Company declared consolidated revenues of USD 46.45 Mn for the quarter as against USD 45.79 Mn in Q4FY13 and USD 47.80 Mn in Q1FY13. The operating profit for the quarter rose 55.7% Q-o-Q to INR 372.88 Mn compared to INR 239.53 Mn in the previous quarter. The company closed the quarter with Net Profit of INR 154.12 Mn as opposed to INR 111.00 Mn in Q4FY13 and INR 206.60 Mn in Q1FY13.
Mr. Manu Parpia, Managing Director & CEO, Geometric Limited said, “Our new organization structure consisting of six verticals, each with P&L responsibility, came into effect this quarter. I believe this will have a strong positive impact on the performance of our organization as we go forward. While most of our verticals performed in line with our outlook, the Industrial vertical which comprises of businesses like mining, agricultural, and construction equipment experienced unexpected softness. We anticipate this weakness to continue to the end of this calendar year”.
In anticipation of this slowdown, the company deferred the salary increments of employees by a quarter, and therefore the impact of salary increases will be seen in Q2.
Key wins and additional business highlights for Q1 FY14
At the end of the quarter, the company had 86 active customers, and signed new deals worth USD 5.51 Mn during the quarter including:
Multiple projects for CAD and PLM application harmonization and migration for a leading European aircraft manufacturer
Strengthened our presence in key manufacturing engineering programs with a major North American automotive OEM
PLM integration and maintenance engagement with a leading oil and gas technology equipment manufacturing and services company
Should costing and analysis project with a major European heavy vehicle manufacturer
Pilot engagement for a DFMPro based enterprise solution with a European high-tech major
Manufacturing engineering assignment for an Asian automotive OEM’s new car program
Other important business highlights for the quarter include:
Received UTC Gold Supplier Certification, the highest supplier status for suppliers of United Technologies Corp. (an aerospace conglomerate) based on our customer focus, quality and lean philosophy
Launched CAMWorks® for Solid Edge®, the first embedded CAM for users of Siemens PLM’s CAD platform, Solid Edge
Introduced an interoperability product, V6 xPDM Adapter for Teamcenter™ to enable exchange of design and engineering data between Siemens PLM Software’s Teamcenter and Dassault Systèmes’ ENOVIA® V6
About Geometric
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 8.08 billion (US Dollars 167.51 million) for the year ended March 2012. It employs over 4500 people across 12 global delivery locations in the US, France, 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.
Highlights for the quarter ended June 30, 2013 (Q1 FY14)
· USD Revenue rises 1.4% Q-o-Q
· In Rupee terms, consolidated revenues benefited from the depreciation of the Rupee to rise 5.3% Q-o-Q to INR 2,602.75 Mn from INR 2,471.26 Mn in the previous quarter. Geometric’s revenue at the end of the corresponding quarter last year stood at INR 2,608.20 Mn
· Reduction in attrition rate to 11% this quarter due to strong employee engagement focus
· EPS for the quarter is INR 2.44
The Company declared consolidated revenues of USD 46.45 Mn for the quarter as against USD 45.79 Mn in Q4FY13 and USD 47.80 Mn in Q1FY13. The operating profit for the quarter rose 55.7% Q-o-Q to INR 372.88 Mn compared to INR 239.53 Mn in the previous quarter. The company closed the quarter with Net Profit of INR 154.12 Mn as opposed to INR 111.00 Mn in Q4FY13 and INR 206.60 Mn in Q1FY13.
Mr. Manu Parpia, Managing Director & CEO, Geometric Limited said, “Our new organization structure consisting of six verticals, each with P&L responsibility, came into effect this quarter. I believe this will have a strong positive impact on the performance of our organization as we go forward. While most of our verticals performed in line with our outlook, the Industrial vertical which comprises of businesses like mining, agricultural, and construction equipment experienced unexpected softness. We anticipate this weakness to continue to the end of this calendar year”.
In anticipation of this slowdown, the company deferred the salary increments of employees by a quarter, and therefore the impact of salary increases will be seen in Q2.
Key wins and additional business highlights for Q1 FY14
At the end of the quarter, the company had 86 active customers, and signed new deals worth USD 5.51 Mn during the quarter including:
Multiple projects for CAD and PLM application harmonization and migration for a leading European aircraft manufacturer
Strengthened our presence in key manufacturing engineering programs with a major North American automotive OEM
PLM integration and maintenance engagement with a leading oil and gas technology equipment manufacturing and services company
Should costing and analysis project with a major European heavy vehicle manufacturer
Pilot engagement for a DFMPro based enterprise solution with a European high-tech major
Manufacturing engineering assignment for an Asian automotive OEM’s new car program
Other important business highlights for the quarter include:
Received UTC Gold Supplier Certification, the highest supplier status for suppliers of United Technologies Corp. (an aerospace conglomerate) based on our customer focus, quality and lean philosophy
Launched CAMWorks® for Solid Edge®, the first embedded CAM for users of Siemens PLM’s CAD platform, Solid Edge
Introduced an interoperability product, V6 xPDM Adapter for Teamcenter™ to enable exchange of design and engineering data between Siemens PLM Software’s Teamcenter and Dassault Systèmes’ ENOVIA® V6
About Geometric
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 8.08 billion (US Dollars 167.51 million) for the year ended March 2012. It employs over 4500 people across 12 global delivery locations in the US, France, 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.
