KPIT Cummins Q3 Net Profits Increase by 66%

KPIT Cummins Infosystems announces its results for the quarter ended December 31, 2006. For the quarter ended December 31, 2006, the Company earned Net Profit of Rs. 137.23 Million, 65.85% over the corresponding quarter in the previous fiscal and 11.14% over the preceding quarter.

Net profit margin has improved to 11.72% of revenues for the quarter, as compared to 10.83% in Q2FY07 and 10.29% in Q3FY06. EPS for the quarter was Rs. 9.21 as compared to Rs. 5.74 for the corresponding period of the previous year, an increase of 60.45%.

Total revenues for the quarter were Rs. 1171.07 Million, reflecting a 45.64% growth over the revenues in Q3FY06 and a 2.70% growth over Q2FY07 revenues. Organic revenues have shown a stronger growth of grown by 7.07% over the previous quarter.

Growth in offshore revenues has been strong at 50.53% over the previous year. As a proportion of total revenues, offshore revenues increased to 49.61% during the quarter, as compared to 42.04% in the corresponding quarter of the previous year.

During the quarter, the Company upgraded 2 of its customers to the Star customer category, thus taking the total number of Star customers to 15. One of the world's leading players in the semiconductor industry and a customer of the Semiconductor Solutions LoB is one of the new Star customers. The other new Star customer is a leading manufacturing company based in Europe.

During the quarter, the Company added 4 new customers, taking the total active customer base to 86. These include 7 of the top 10 OEMs in the automobile industry, 6 of the top 20 semiconductor companies of the world and other leading names in the manufacturing and financial services verticals. There are 17 customers with a revenue run rate of over $1 Million.

For Q3FY07, 62.25% of Company's revenue came from US, 29.45% from Europe and the balance 8.30% from Rest of the World, including Japan and Asia Pacific. Revenue breakdown by industry vertical was 77.50% from Manufacturing, 10.63% from Diversified Financial Services (DFS) and the balance 11.87% from 'Others' which included independent software vendors. Manufacturing vertical has grown by 4.26% compared to the previous quarter.

During the quarter the Company added 321 new employees, taking the total employee strength to 3,119.

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