Kale posts robust growth in FY08

Consolidated revenue grows 37%, Operational PBT grows 28%

Brief highlights: Strategic Acquisition of Zero Octa, UK based leading revenue recovery and audit services firm, fuelling strong revenue growth Alliance with ATPCO, to jointly offer one best-practice proration solution to the airline industry Client base grows significantly to over 95 clients, including 12 of the top 20 airlines Enhanced focus on domestic logistics and travel markets New Brand Positioning “Industry Solutions, Customised Approach” Consolidated EPS for the year at Rs. 14.47 per share

Mumbai, April 25, 2008: - Kale Consultants, the leading solutions provider to the Airline, Logistics and Travel (ALT) industry, has recorded consolidated revenues of Rs. 1,221.17 million for the year ended March 31, 2008, as compared to Rs. 891.54 million during the previous year, a growth of 37%. Operational PBT was Rs. 129.35 million compared to Rs. 100.76 in the previous year, which is a growth of 28%. Profit after tax stood at Rs 207.57 million as compared to Rs. 89.53 million, which includes exceptional gain of Rs. 101.16 million largely due to sale of real estate assets.

For the quarter ended March 31, 2008, Kale has recorded consolidated revenues of Rs. 338.24 million as compared to Rs. 263.21 million for the corresponding quarter of the previous year, a growth of 29%. Operational PBT stood at Rs. 59.90 million as compared to Rs. 40.89 million during the previous year, a growth of 46%.

Commenting on the performance, Mr. Vipul Jain, CEO & Managing Director said, “This has been a milestone year for Kale. The acquisition of Zero Octa and the alliance with ATPCO, have clearly strengthened our leadership position in the airlines industry. The logistics and travel industry in India is a big emerging opportunity and we are well positioned in this market. We have over 95 customers including 12 of the top 20 airlines and are now targeting them with a larger portfolio of solutions.”

Highlights for the Year ended March 31, 2008
	Zero Octa is a strategic addition to Kale’s Revenue Management portfolio aimed specifically at the airline industry. Zero Octa offers a fully managed end-to-end revenue recovery and audit solution that maximises the efficiency of the airlines’ systems, processes and personnel.
	Kale and ATPCO (Airline Tariff Publishing Company, USA) entered an alliance to jointly offer one best-practice proration solution to the airline industry. As per the agreement, Kale and ATPCO will offer a unified NFP solution, which will be powered by Kale’s APEX®.
	Kale’s client base now comprises over 95 customers worldwide, this includes 12 of the top 20 airlines. Kale’s airline customer base also includes two of the world’s largest airline alliances, SkyTeam and Star Alliance. Other international clientele include Qatar Airways, bmi, Continental Airlines, American Airlines, Air India SATS Joint Venture, Mercury Travels, lastminute.com amongst others.
	The Airlines business had a strong intake of clients across all target geographies. All of ATPCO’s CIPS customers including major carriers like United Airlines, US Air and Air New Zealand are being migrated to Kale’s APEX®. Other notable new projects include Airmail Accounting BPO for Finnair Cargo and Cargo Sales Audit service for Saudi Arabia Airlines. Kale-MPS® has also been processing Passenger Revenue Accounting for Air India. Now with the merger of Indian Airlines and Air India into NACIL, Kale has started processing all the tickets for the domestic operations also.
	The Logistics business has strengthened its offerings during the year and added new clients like ASJ (Air India Singapore Airline Terminal Services Joint Venture), HTL Logistics and Globalink Logistics.
	During the year Kale’s award winning BPO arm, MPS® processed over 25 million revenue accounting transactions; 15 million interline transactions and helped customers recover $ 50 million in revenue making a direct impact to their profitability.
	During the year Kale’s employee strength grew from 900 to over 1500 techno-functional professionals, who are spread across 3 software development centres, 4 managed process outsourcing centres in India and global presence in USA, UK, New Zealand and Argentina.
	In line with global ambitions, Kale has adopted a new positioning – “Industry Solutions, Customised Approach”. The brand repositioning initiative is geared towards articulating enhanced capabilities, as well as to differentiate Kale’s capabilities from its competition.

 

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.

For additional information, please contact:

Mr. Sumeet Nadkar
Chief Financial Officer
Kale Consultants Ltd.
Tel: 91-22-67808888
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.