KPIT Cummins Infosystems Ltd (BSE: 532400; NSE: KPIT), a global IT consulting organisation, announced its results for the quarter ended June 30, 2006. During the first quarter of the financial year 2006-07 (Q1 FY07), revenue grew by 46.17% over Q1 FY06 and 13.42% over Q4 FY06 to Rs. 1,022.65 Million. Net profit for Q1 FY07, after minority interest, was Rs. 103.47 Million. Net profit has grown by 61.82% over Q1 FY06 net profits and by 0.73% over Q4 FY06. EPS for the quarter was Rs. 7.01 as compared to Rs. 4.54 for the corresponding period of the previous year.

Continuing with the favourable trend of the previous year, offshore revenue increased to 46.84% of total revenue in Q1 FY07 from 43.44% in Q4 FY06 and 34.62% in Q1 FY06. The offshore / onsite mix has impacted the gross profit margins of the Company positively. Gross margins have therefore increased to 37.33% in Q1FY07 from 36.62% in Q4FY06 and 33.97% in Q1FY06.

During the quarter, the company added 5 new customers, taking the total customer base to 77.

For Q1 FY07, 64.75% of Company’s revenue came from US, 28.88% from Europe and the balance 6.37% from Rest of the World, including Japan and Asia Pacific. Revenue breakdown by industry vertical was 77.33% from Manufacturing, 8.74% from Diversified Financial Services (DFS) and the balance 13.95% from ‘Others’ which included independent software vendors.

During the quarter the Company added 174 new employees in addition to the 248 employees of CG-Smith, thus taking the total employee strength to 2,544.

Commenting on the performance of the company, Mr. Kishor Patil, CEO and Managing Director, KPIT Cummins said, “We have crossed the Rs.100 crores mark for quarterly revenue for the first time in our history. This is in line with our mission of becoming a $100Million company by this fiscal. As we look at expansion, apart from Europe, which we expect to provide higher revenue growth in future, we will be setting up operations in China and Singapore to service our customers in Asia-Pacific region.”

Mr Pawan Sharma, President KPIT Cummins Global Business Solutions and Head – DFS added, “In the last quarter, we have experienced good traction among GBS and DFS customers. We have added 2 customers to the GBS business and one leading European bank as our DFS customer. We are further investing into new sales people and technology. We believe customers will increasingly prefer one-stop solutions providers. Our combined offering of IT and Business Solutions is finding favour with customers.”

Sourced From : Adfactors Public Relations Pvt Ltd