Geometric Software reports rise

MUMBAI: Geometric Software Solutions Co. Ltd. on Monday reported a steep increase in net profit for the quarter to December 2006 after shaking off "performance issues," a top official said.

The company reported a net profit of 82.99 million rupees on net sales of 453.80 million rupees.

"It would not be right to compare our performance with year ago as last year we had performance issues," Chief Executive Officer and Managing Director Ravi Gopinath told Reuters.

"We are on track to meet the guidance for organic growth we had given at the beginning of the year," he said, adding that Modern Engineering's contribution to the financial was not yet being taken into account.

Geometric acquired Modern Engineering for $23.75 million, which became its subsidiary with effect from November 1, 2006. For the two months ending December 2006, Modern's net profit was $0.09 million on operating revenue of $5.6 million, the company said.

For FY07 the company had forecast a 35 percent growth both in operating revenue and net profit.

"With the consolidation of Modern Engineering, Geometric has a significantly enhanced business portfolio and delivery footprint," he added.

Last quarter's operating revenue was adversely impacted by the appreciating rupee and interest on debt used to the fund Modern's acquisition.

"This quarter we expect the situation to be better," Gopinath said.

The acquisition has helped the company's engineering services thrust that has increased its share in revenues to 10 percent from 6 percent year ago.

As of December-end its total employee base stood at 2400, while the attrition rate reduced to 20 percent from 23 percent in the previous sequential quarter.

Geometric shares closed up 4.25 percent at 141.05 rupees in the Mumbai market.