globally, today announced its operating results for the year ended and quarter ended March 31, 2005.
The following are the highlights of the operating results on a consolidated basis for the year ended March 31, 2005:
â¢ Revenue grew to Rs. 2920 million, registering a growth of 26% over the
previous yearâs revenue of Rs. 2320 million
â¢ Gross margins moved from 38% of revenue in the previous year to 43% of
revenue in the current year
â¢ Profit before interest, depreciation and taxation (PBDIT) improved by 200% to
Rs. 508.73 in the current year compared to the previous year. Consequently,
PBDIT margins moved from 7% of revenue in the previous year to 17% of
revenue in the current year
â¢ The Company has posted a consolidated profit after tax of Rs. 321.14 million
for the current year
â¢ The EPS for the year has grown to Rs 6.88 as against a negative EPS in the
Commenting on the improvement in the operations, Mr. V. Srinivasan, Managing
Director and CEO, stated, "The growth in revenues, gross margins and PBDIT
margins is the result of the right strategies we have been following in increasing the software product mix in our revenues. This has been achieved by penetrating newer markets through proper branding, marketing and sales strategies and making the products globally acceptable."
Highlighting the success of the product strategy, Mr. Hari Padmanabhan, Executive Director, commented, "The mix of product revenue in total revenue has grown from 31% in the previous year to 44% in the current year, moving closer to the 50:50 ratio we want to achieve in the products-services revenue mix."
Commenting on the performance, Mr. Manoj Kunkalienkar, Executive Director,
stated, "The Company, in addition to the sales penetration strategies, has also
rationalized substantially on selling, general and administration expenses, thereby reducing this from 30% of revenue in the previous year to 26% in the current year."
The highlights of the operating results on a consolidated basis for the quarter
ended March 31, 2005, are as follows:
â¢ Revenue grew to Rs. 818 million, registering a growth of 24% over the
corresponding quarter of the previous year and a growth of 8% over the
previous quarterâs revenue
â¢ Gross margins moved from 40% of revenue in the corresponding quarter of the
previous year to 43% of revenue in the current quarter
â¢ EBIDTA margins moved from 11% of revenue in the corresponding quarter of
the previous year to 18% of revenue in the current quarter
â¢ The Company has posted a consolidated profit after tax of Rs. 75.02 million for the current quarter
"The future strategy of the Company will continue to be client penetration through the product strategy and build upon these relationships to penetrate further in the services business," stated Mr. V. Srinivasan.
The Board also recommended a full and final dividend of Rs 1/- per share on full equity share capital outstanding as on date.
Board level changes:
The Company has inducted on the Board of Directors, Mr. Bruce Kogut and Mr. S.
Santhanakrishnan. Leaving the Board of Directors are Mr. Vijay Thacker and Ms.
Ramni Nirula. Mr. Kogut is a Professor at INSEAD, France. His areas of work include international direct investment, development economics, technology policy, and privatization.
Mr. S. Santhanakrishnan is a Chartered Accountant with a degree in Law. He is the Managing Partner of Sridhar & Santhanam, a member of Central Council of the
Institute of Chartered Accountants of India (ICAI) and serves on several committees of the institute.
Outlook for fiscal 2006:
For fiscal 2006, the Company anticipates a growth in revenue of between 25% and
30% over the revenue in fiscal 2005, with net margins of between 13% and 15%.