Geometric Q1 consolidated net soars 84%

Mumbai-based Geometric Software Solutions posted a consolidated net profit of Rs 11.65 crore for the quarter-ended June 30, 2007 - a 83.8% increase when compared with the Rs 6.34 crore figure in the corresponding quarter a year ago. The company's total income was up 82.8% to total Rs 126.44 crore as compared to the Rs 69.16 crore figure reported in the first quarter of the previous financial year.

As compared to the trailing quarter, Geometric's operating revenues decreased by 1.3% in dollar terms and 9.1% in rupee terms.

Commenting on the results, Ravi Gopinath, CEO and MD, said: "The marginal drop in our revenues on a sequential (as compared to the previous quarter) basis is the outcome of a lengthy sales cycle, project start-up delays and our emphasis on securing business directly. However the combined value proposition of our extended PLM and global engineering offerings is demonstrating very good traction and we have closed new direct business of over $5 million in the first quarter. This will manifest itself as billing in the next few quarters."

Speaking on the rupee impact, G Ravishankar, CFO, said: "The company follows the policy of covering major portion of its foreign exchange earnings, including the highly probable transactions. Significant appreciation of rupee coupled with the company's policy of accounting for exchange gains on mark-to-market basis, in line with the ICAI guidelines, resulted in high other income (Rs 13.53 crore)."

The business mix has seen a drop in the products revenue share from 8% to  7.1%, and an increase in the engineering revenue share increased by 1%. There was no major change in the geographical mix of revenue. Offshore (including offsite) revenue as a percentage of total services revenue increased from 43.3% to 45.9%. Revenue from software product companies comprised 33.6% of the total, recording an increase of 3.9% and industrial customers contributed 49.5% of the revenues. The company had 2628 employees as of June 30, 2007, including its subsidiaries. The gross addition in the number of employees in the quarter was 187.