Kale posts robust growth Consolidated Q1 Revenues up 42%
Brief
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Increasing opportunity in Platform-based BPO model |
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Consolidated EPS for the quarter at Rs. 2.75 per share |
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- Kale Consultants, the leading solutions provider to the Airline, Logistics and Travel (ALT) industry, has recorded consolidated revenues of Rs. 326.13 mn for the quarter ended June 30, 2008, as compared to Rs. 230.31 mn during the previous year, a growth of 42%. Consolidated PAT stood at Rs. 36.48 mn as compared to Rs. 13.87 mn. (Previous quarter’s PAT of Rs. 117.31 mn includes an exceptional gain of Rs. 103.43 mn.)
On a stand-alone basis, the company recorded total income of Rs. 229.87 mn as compared to Rs. 210.19 mn during the corresponding period. The PAT stands at Rs. 17.44 mn as compared to Rs. 11.51 mn, a growth of 51%.
Commenting on the performance, Mr. Sumeet Nadkar, CFO said, “We are on-track in terms of revenue and profitability growth. The acquisition of Zero Octa last year is working well and contributing to the overall performance. We are confident that we will continue to grow in coming quarters”.
Speaking about the business environment, Mr. Vipul Jain, CEO and Managing Director said “The airline industry is in what IATA is calling “The Perfect Storm”. The high fuel prices combined with fears of economic slowdown are hurting airlines badly, with the industry expected to have losses of $ 2.3 billion in 2008. Crises are opportunities to drive bold changes – and we are working with our customers to help them realize significant efficiencies and substantially lower costs. Platform-based outsourcing and SaaS (Software as a Service) are the business models that drive transformation while sharing risk and reward with customers. We are seeing more traction than ever before with these models.”
Kale Consultants provides comprehensive revenue accounting and cargo solutions to airline industry. For the logistics industry Kale provides solutions to the entire value chain including, carriers, shippers, airports, freight forwarders and container freight stations. Solutions for the travel industry include an end-to-end platform for travel operators.
Kale’s solutions are also available as pay-for-use hosted platforms. This innovative model is beneficial for customers since it reduces upfront investments. The return on investment on the pay for use model is quite fast since the business benefits of the solution pays for itself. Kale also offers a transaction based pricing that is tailored to the clients’ business. Similarly, Kale’s audit and revenue recovery services helps airlines recover lost revenue. The recovery is a direct addition to airlines profitability and helps customers identify gaps and plug revenue leakages. Thus Kale’s solutions reduce capital expenditure and offer flexible pricing models, thereby sharing risks and rewards.
Kale’s 95+ customers include the SkyTeam and Star Alliance, American Airlines, Continental Airlines, Qatar Airways, bmi, Air India SATS, HTL Logistics, Globalink Logistics to name a few.
Investor Relations:
Kale Consultants Ltd is committed to create long-term sustainable shareholder value through successful
implementation of its growth plans. The company’s investor relations mission is to maintain an ongoing
awareness of its performance among shareholders and financial community.
Mr. Sumeet Nadkar
Chief Financial Officer
Kale Consultants Ltd.
Tel: 91-22-6780 8888
Email: Sumeet_Nadkar@kaleconsultants.com
Safe Harbor
Certain statements in this release concerning our future
growth prospects are forward-looking statements which involve
a number of risks and uncertainties that could cause actual
results to differ materially from those in such forward-looking
statements. The risks and uncertainties relating to these
statements include, but are not limited to, risks and uncertainties
regarding fluctuations in earnings, our ability to manage
growth, intense competition in IT services including those
factors which may affect our cost advantage, wage increases
in India, our ability to attract and retain highly skilled
professionals, time and cost overruns on fixed-price, fixed-time
frame contracts, client concentration, restrictions on immigration,
our ability to manage our international operations, reduced
demand for technology in our key focus areas, disruptions
in telecommunication networks, our ability to successfully
complete and integrate potential acquisitions, liability
for damages on our service contracts, withdrawal of governmental
fiscal incentives, political instability, legal restrictions
on raising capital or acquiring companies outside India,
and unauthorized use of our intellectual property and general
economic conditions affecting our industry. The company
does not undertake to update any forward-looking statement
that may be made from time to time by or on behalf of the
company.
