Kale’s consolidated revenue up 67%, net profit up
26%
Brief
highlights: |
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Strategic acquisition of UK headquartered Zero Octa.
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Strategic alliance with ATPCO signed; post alliance,
Kale becomes the sole provider of technology for IATA's
NFPT initiative. |
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Consolidated
EPS grows to 11.01 for the half year ended September
30, 2007 as compared to 3.07 for the corresponding period
of the previous year. |
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Kale
adds 45 more clients including Star Alliance and now
has 12 of the top 20 airlines as its customers. |
Mumbai, Oct 26, 2007 -
During the quarter, Kale Consultants Limited (Kale), acquired
Zero Octa , the global leader in revenue integrity, audit
and recovery services. This is the first quarterly result
post acquisition. The consolidated total income for the
quarter ended September 30, 2007 stood at Rs. 365.84 million
as compared to Rs. 219.19 million for the corresponding
quarter of the previous year, a growth of 66.91%.
The consolidated EBIDTA before exceptional item was Rs.
72.37 million for the quarter ended September 30, 2007 as
compared to Rs. 56.25 million for the corresponding quarter
of the previous year. The PAT for the quarter stood at Rs.
28.76 million as compared to Rs. 22.74 million for the corresponding
quarter of the previous year, a growth of 26.44%.
Consolidated total income for the half year ended September
30, 2007 stood at Rs. 596.15 million as compared to Rs.
425.53 million for the corresponding half year of the previous
year, a growth of 40.09%.
Commenting on the performance,
Mr. Vipul Jain, CEO & Managing Director said, "The
acquisition of Zero Octa and the strategic alliance with
ATPCO has strengthened and consolidated our position in
the revenue management and accounting space. This has resulted
in a revenue growth of 67%, which is in line with our strategic
objectives."
The unaudited revenue figures for the listed entity (Kale
Consultants) are as follows:
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Operational revenues of Rs. 208.79
million for the quarter ended September 30, 2007 as compared
to Rs. 189.43 million for the corresponding quarter of
the previous year.
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The company recorded an EBIDTA before
exceptional item of Rs. 35.82 million for the quarter
ended September 30, 2007 as compared to Rs. 48.15 million
for the corresponding quarter of the previous year. The
PAT stood at Rs. 5.81 million as compared to Rs. 17.13
million for the corresponding quarter of the previous
year.
Highlights
Acquisition of Zero Octa
Zero Octa is widely considered
as the pioneer and global leader in helping airlines review
their revenue and sales processes with a view to prevent
and recover any leakages. This business is very synergistic
with Kale’s portfolio in revenue management and accounting
and positions Kale as the largest provider in this domain.
The acquisition was funded by internal sources without any
dilution of equity.
Kale, post the acquisition:
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The employee
strength has grown from 900 to 1500 professionals.
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Over 25 new
customers have been added to Kale's marquee client list.
Kale's client base now comprises of 80 customers.
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Kale's BPO
capabilities have got enhanced with expertise in revenue
management and sales processes.
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Kale has added
delivery centers in Mumbai and Goa.
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Kale's strengthened
portfolio comprises the broadest range of unparalleled
solutions in revenue management, audit, integrity, accounting,
and interline billing.
Kale and ATPCO offer unified NFP
solution
In 2003, IATA had selected and approved
ATPCO's CIPSTM and Kale's APEX® as the only two Neutral Fare
Proration (NFP) engines which formed part of the First & FinalT
(F&F) interline billing service, provided by ATPCO, IATA and
ARC (AIA). With this collaboration both companies will combine
their expertise, ATPCO's customer relationship as an airline-owned
industry organization and Kale's technology skills, to promote
industry solutions for proration and interline billing. As
part of the alliance, Kale and ATPCO will now provide Kale's
APEX® as the one best-practice solution to the airline industry.
(ATPCO - Airline Tariff Publishing Corporation)
Customer Acquisitions
As a result of these strategic events
during the quarter, Kale’s customer base in the airlines
industry has increased by over 45 new clients. Kale’s
combined client list now includes two of the world’s
largest airline alliances; the SkyTeam and the Star Alliance,
which jointly account for over 45% of the global airline industry.
The client portfolio now boasts of 12 of the global top 20
airlines.
For additional information,
please contact:
Mr. Sumeet Nadkar
Chief Financial Officer
Kale Consultants Ltd.
Tel: 91-22-67808888
Email: Sumeet_Nadkar@kaleconsultants.com
Mr. Parag Someshwar /
Mr. Manoj Bagadia
Equicorp.
Tel: 91-22-25121528
Email: equicorp@vsnl.net
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.
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