Moneycontrol Bureau
Geometric's first quarter net profit grew by whopping 480 percent or 5.8 times sequentially to Rs 19.12 crore, led by other income, engineering services business and operational performance.
Revenue increased by 11 percent quarter-on-quarter to Rs 297.5 crore and dollar revenue jumped 9 percent to USD 46.8 million in the quarter ended June.
"This quarter, we saw volume growth in both software services and engineering services. We have also taken several steps to streamline operations, which should lead to an improvement in margins," said Manu Parpia, Managing Director & CEO.
Software services business grew by 11.5 percent Q-o-Q to Rs 186.19 crore with EBIT (earnings before interest and tax) down 12.9 percent. Engineering services revenue increased by 13.2 percent to Rs 96 crore with EBIT climbing 79.65 percent while products business fell 5 percent to Rs 15.37 crore with EBIT surging 42.3 percent in the quarter.
Geometric said it has signed new deals worth USD 13.65 million during the quarter against USD 9.4 million in previous quarter. "We showed an improvement in retention, with annualised attrition for the quarter at 10.9 percent against 13.8 percent.
Operating profit (earnings before interest, tax, depreciation and amortisation) rose by 140.6 percent quarter-on-quarter to Rs 25.67 crore and margin expanded by 462 basis points to 8.62 percent in the quarter gone by.
It was an excellent performance on the margin front as margin had contracted very sharply to 4 percent in Q4FY15 from 12.2 percent in Q3FY15.
Other income more than doubled to Rs 15.9 crore in first quarter of FY16 compared to Rs 7.38 crore in fourth quarter of FY15.
At 11:30 hours IST, the scrip of Geometric was quoting at Rs 127.65, up Rs 12.35, or 10.71 percent on the BSE.Posted by Sunil Shankar Matkar
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