KPIT Cummins Q3 Net Profits increase by 66%

KPIT Cummins Infosystems have announced their Q3 FY07 results.
 
*         Net profit for Q3FY07 grew by 65.85% over previous year to Rs.
137.23 million 
*         Revenues for Q3FY07 grew by 45.64% over previous year to Rs.
1171.07 million
*         Offshore revenues grew by 50.53%  over previous year
*         2 new Star customers added
*         4 new customers added during the quarter
*         17 customers reach revenue run rate of over $1 Million
 
Please find attached and enclosed the press release on the same. 
 

Warm Regards,

Aniket Thakur
Adfactors PR Pvt. Ltd.  
Technology Communications Practice
Raj Mahal, 4th Floor, 
84, Veer Nariman Road, Churchgate, 
Mumbai 400020 
tel: +91 22 2287 1361 
fax: +91 22 2287 1365 
mobile: +91 9892173022
Knowledge-driven communications
The information in this email is confidential and is intended solely for
the addressee(s). Access to this email by anyone else is unauthorized.
If you are not an intended recipient, you must not read, use or
disseminate the information contained in this email
 
 




Press Release


KPIT Cummins Q3 Net Profits increase by 66% 

*         Net profit for Q3FY07 grew by 65.85% over previous year to Rs.
137.23 million 
*         Revenues for Q3FY07 grew by 45.64% over previous year to Rs.
1171.07 million
*         Offshore revenues grew by 50.53%  over previous year
*         2 new Star customers added
*         4 new customers added during the quarter
*         17 customers reach revenue run rate of over $1 Million
 
Pune, January 18, 2007: KPIT Cummins Infosystems Ltd (BSE: 532400; NSE:
KPIT), a global IT consulting organisation, announced 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.
 
Commenting on the performance of the Company, Mr. Ravi Pandit, Chairman
and Group CEO, KPIT Cummins said, "We are happy with the performance.
During this quarter we have stepped up our investment in technology
development as well as marketing. We remain confident of achieving our
targeted results." 
 
Mr Kishor Patil, Managing Director and CEO, KPIT Cummins added, "Our
relationship with our customers is stronger than ever before, as
reflected in customer satisfaction surveys, appreciation of clients,
etc. We have 17 customers reaching revenue run rate of over $ 1 Million.
Moreover, even in the face of stiff competition from global vendors, we
have been able to win some important deals especially in the automotive
sector."
 
 

About KPIT Cummins 

KPIT Cummins Infosystems Ltd is a global IT consulting organization and
a CMMI level 5 Company. With a major presence in solutions for
Manufacturing, Advanced Technology Solutions (Automotive, Industrial
Automotive and Semiconductor Solutions) and Diversified Financial
Services, KPIT Cummins has grown at 66% CAGR over the last three years.
KPIT Cummins has been ranked overall 8th among all listed Indian IT
companies by Dataquest FINANCIAL INDEX. The Company operates globally
through its subsidiaries in USA, UK, France, Germany and Singapore. 
 
Forward Looking Statements
Some of the statements in this update that are not historical facts are
forward-looking statements. These forward-looking statements include our
financial and growth projections as well as statements concerning our
plans, strategies, intentions and beliefs concerning our business and
the markets in which we operate. These statements are based on
information currently available to us, and we assume no obligation to
update these statements as circumstances change. There are risks and
uncertainties that could cause actual events to differ materially from
these forward-looking statements. These risks include, but are not
limited to, the level of market demand for our services, the
highly-competitive market for the types of services that we offer,
market conditions that could cause our customers to reduce their
spending for our services, our ability to create, acquire and build new
businesses and to grow our existing businesses, our ability to attract
and retain qualified personnel, currency fluctuations and market
conditions in India and elsewhere around the world, and other risks not
specifically mentioned herein but those that are common to industry.
 
Investor contact:                                           Media
Contact:
Sanjay Sinha                      `                           Pushpahas
Joshi  
  sanjays1@kpitcummins.com
pushpahasj@kpitcummins.com 
Tel: +91 20 6652 5108                                               Tel:
+91 20 6652 5202