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| Kale Q2 Revenues up 26% |
| Brief highlights: |
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| Mumbai, Oct 20, 2008: |
| Kale Consultants, the leading solutions provider to the Airline, Logistics and Travel (ALT) industry, has recorded revenues of Rs. 262.06 mn for the quarter ended September 30, 2008, as compared to Rs. 208.79 mn for the corresponding quarter of previous year, a growth of 25.52%. The PAT stood at Rs. 26.63 mn as compared to Rs. 5.81 mn for the corresponding quarter of previous year. |
| Consolidated total income for the quarter ended September 30, 2008 stood at Rs. 372.96 mn as compared to Rs. 358.80 mn for the corresponding quarter of the previous year. The consolidated PAT stood at 40.84 mn as compared to Rs. 27.80 mn for the corresponding quarter of the previous year. |
| Commenting on the performance, Mr. Sumeet Nadkar, CFO said, "In Q2 we have sustained our steady growth, and are confident of further growth in the coming quarters. The steady growth in these tough economic conditions is a result of our annuity based revenue model, which ensures that irregular spikes in business do not affect our results." |
| Speaking about the business environment, Mr. Vipul Jain, CEO and Managing Director said "Even though oil prices have come down, the global economic downturn is a major worry for the airline industry. There is greater impetus and urgency to reduce costs and gain efficiencies by transformational outsourcing. During this quarter we have won 3 significant orders that add approximately $ 40 mn to our order book." |
| Technology Survey for Indian Logistics Industry: |
| The Technology Survey for the Indian Logistics Industry, commissioned by Kale Consultants, revealed that the size of the sector is currently estimated to be at Rs. 2,440 bn. The size is expected to grow to Rs. 4,100 bn by 2013 at a CAGR of 11%. The demand for IT solutions in the logistics sector is expected to cross the Rs. 1,000 crore mark by 2013 from the present Rs. 400 crore growing at a CAGR of 22%. 54% of the IT investments are expected to be made towards operational and software license costs. |
| 100 Customers: |
| During the quarter, Kale Consultants reached the phenomenal landmark of 100 customers. Kale's customers comprise of a good mix of the Airline, Logistics and Travel (ALT) industry, including the SkyTeam and Star Alliance, NACIL, American Airlines, Continental Airlines, Qatar Airways, bmi, Air India SATS, HTL Logistics,Globalink Logistics to name a few. |
| 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. |
| 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. |
