KPIT COMMINS=FY10=SALES LESS=OPERATING PROFIT LESS=FY11 TO BE BETTER

KPIT CUMMINS

INFOSYSTEMS LIMITED

FY10 vs FY 09

RESULTS COMPARISON

CONSOLIDATED

The consolidated  figures are below. Net sales are down by7.76 percent YOY. However, raw material  expenditure is down more by 8.43%. Operating profit is down by 6.49%.

Other Income for FY10 is (-)2525.29 lakhs compared to  (-)5737.9 lakhs, a difference of (-)55.99% YOY.

It appears that only this reduction of (Minus) other income YOY has finally resulted in Net profit.

Net Profit based on this, has jumped by 30.26 percent on consolidated basis to Rs.8573 lakhs from Rs.6582 lakhs last year.

Basic EPS(in Rs.) is Rs.10.97 against Rs.8.44 last year- on a face value of Rs.2.

At current market price of Rs.121, the PE ratio comes to 11.03.

From the segment reporting of the 2 years, it is seen that the major fall is in the UK and Europe markets, while US market has maintained  some improvement over last year.

In the circumstances, the performance of the company needs close watch in current quarter. But, current PE is not high. The company has said "KPIT Cummins expects Fiscal 2011 revenues to grow by 25% in USD terms" which is encouraging.

KPIT CUMMINS_CONSOL	FY10(lakhs)	FY09(lakhs)	Dif%age
Net SALES / services	73164.07	79315.48	-7.76
SIT & WIP	-	-
Raw Materials	40904.96	44672.04	-8.43
Traded goods	-	-
Other Expdr	-	-
Gross Profit	32259.11	34643.44	-6.88
General Administrative	9477.48	9432.54	0.48
Selling and Distribution	6637.31	6875.4	-3.46
Depreciation	3080.37	4364.57	-29.42
Operating Profit	13063.95	13970.93	-6.49
Interest	274.15	454.74	-39.71
Exceptional	-	-
Other Income	-2525.29	-5737.9	-55.99
Profit before tax	10264.51	7778.29	31.96
Tax Expense	1691.42	1196.68	41.34
Net Profit after tax	8573.09	6581.61	30.26
Extraordinary Items	-	-
Net Profit	8573.09	6581.61	30.26
Minority Interest	-	-3.54
Shares of Associates	-	-
Other Related Items	-	-
Consolidated Net Profit	8573.09	6585.15	30.19
Dividend (%)	-	-
Face Value (in Rs.)	2	2	0
Paid-up Equity	1570.46	1560.86	0.62
Reserves	36966.63	15292.89	141.72
Basic EPS(in Rs.)	10.97	8.44	29.98
Diluted EPS(in Rs.)	10.8	8.41	28.42
Public Shareholding (%)	69.42	72.58	-4.35

SEGMENT REPORTING	FY10_lakhs	FY 09_lakhs	DIF%AGE
TOTAL REVENUE
RESTWORLD	7004.06	7120.54	-1.64
USA	43924.36	43766.51	0.36
UK&EUROPE	22235.65	28428.43	-21.78
Total	73164.07	79315.48	-7.76
Less:	0	0
Inter Segment Revenue
Net Sales/Inc. from Ops.	73164.07	79315.48	-7.76
RESULTS
USA	17500.22	16298.92	7.37
RESTWORLD	850.61	1308.06	-34.97
UK&EUROPE	6565.7	9926.22	-33.85
Total	24916.53	27533.2	-9.5
Less:
Interest	274.15	454.74	-39.71
Other un-allocable
expenditure net off
un-allocable income	14377.86	19300.16	-25.5
Total Profit Before Tax	10264.52	7778.3	31.96

NON-CONSOLIDATED

On a stand alone basis, net sales are down by a huge 33.71 percent, while raw material costs are down by 40.14%.

Operating profit after interest is down by 25.84%  to Rs.10176 lakhs from Rs.13722 lakhs YOY.

Other Income which is Rs.(-)1159 lakhs compared to Rs.(-)6681 lakhs, a difference of (-)82.66% YOY.

This only has resulted in Net Profit        rising by 25% to Rs.7845 lakhs from last year’s Rs.6277 lakhs.

As a consequence, Basic EPS has risen to Rs.10.04 on a FV of rs.2/- from Rs.8.05 last year.

KPITCUMMINS-NONCONSOL	FY10(lakhs)	FY09(lakhs)	Dif%age
Net sales / services	42704.47	64418.11	-33.71
SIT & WIP	-	-
Raw Materials	23244.96	38835.24	-40.14
Traded goods	-	-
Other Expdr	-	-
Gross Profit	19459.51	25582.87	-23.94
General Administrative	5603.33	8517.03	-34.21
Selling and Distribution	650.36	598.21	8.72
Depreciation	2817.42	2325.54	21.15
OPT before Interest	10388.4	14142.09	-26.54
Interest	212.5	420.17	-49.43
Exceptional	-	-
OPT AFT.INTT	10175.9	13721.92	-25.84
Other Income	-1158.65	-6680.94	-82.66
Profit before tax	9017.25	7040.98	28.07
Tax Expense	1172.27	764.11	53.42
Net Profit after tax	7844.98	6276.87	24.98
Extraordinary Items	-	-
Net Profit	7844.98	6276.87	24.98
Dividend (%)	-	-
Face Value (in Rs.)	2	2	0
Paid-up Equity	1570.46	1560.86	0.62
Reserves	37098.67	19404.64	91.18
Basic EPS(Rs.)	10.04	8.05	24.72
Diluted EPS( Rs.)	9.88	8.02	23.19
Public Shareholding (%)	69.48	72.58	-4.27

QUARTERLY RESULTS

The Q4 results for  FY10 are not encouraging, as can be seen from the figures below. There is a fall in Net sales, increase in total expenditure, operating profit, Net profit and EPS in Q4  compared to Q3, Q2, and Q1 – and also with reference to Q4 of FY 09.

Basic EPS in Q4 is down to Rs.1.89 from Rs.2.77 in Q3, Rs.3.31 in Q2, Rs.2.08 in Q1 (and also Rs.3.19 in Q4 of FY 09).

KPIT CUMMINSINFOSYSTEMS	Mar-10	Dec-09	Sep-09	Jun-09	Mar-09
Net Sales	9942.4	10898.3	10980.6	10883.3	16410.8
Raw Materials	5875.2	5532.86	5664.47	6172.43	8843.1
Total Expdr	5875.2	5532.86	5664.47	6172.43	8843.1
Gross Profit	4067.2	5365.41	5316.11	4710.82	7567.74
General Administration	1373.9	1618.99	709.33	1901.16	1772.12
Selling and Distribution	117.6	207.27	82.98	242.51	138.89
Depreciation3	698.39	738.02	713.26	667.75	618.52
Interest	36.14	98.25	39.54	38.58	138.78
OPT after Interest	1841.2	2702.88	3771	1860.82	4899.43
Other Income	-148.59	-193.53	-1010.88	194.37	-2163.58
Profit before tax	1692.6	2509.35	2760.12	2055.19	2735.85
Tax Expenses	211.19	351.05	179.71	430.33	243.4
Net Profit after Tax	1481.4	2158.3	2580.41	1624.86	2492.45
Net Profit	1481.4	2158.3	2580.41	1624.86	2492.45
F.V (in Rs.)	2	2	2	2	2
Paid-up Equity	1570.5	1561.06	1560.96	1560.86	1560.86
Reserves	-	-	-	-	19404.6
Dividend (%)	-	-	-	-	-
Basic EPS	1.89	2.77	3.31	2.08	3.19
Diluted EPS	1.83	2.71	3.27	2.08	3.18

ANNOUNCEMENTS MADE

TO THE EXCHANGE

07-06-2010        Kpit Cummins Infosystems Limited has informed the Exchange regarding a press release dated June 04, 2010, titled "BHARAT FORGE and KPIT CUMMINS to Form a Joint Venture; Announce 'New Hybrid Technology Solution' for Automobiles; Unveil 'REVOLO'- A Smart and Sustainable Solution that Redefines Mileage Standards". 

04-06-2010        Kpit Cummins Infosystems Limited has informed the Exchange that the Board of Directors of the Company has approved a Joint Venture Agreement with Bharat Forge Limited for Innovative Solutions belonging to next generation of Automotive Technology.

07-05-2010        Kpit Cummins Infosystems Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on May 07, 2010 have approved following major proposals : (1) The Annual General Meeting of the Company will be held on July 16, 2010. (b) Allotment of 130,880 equity shares under the ESOP Schemes of the Company. (c) Approval of merger of KPIT Cummins Global Business Solutions Limited & KPIT Infosystems Central Europe Sp. Z.o.o (Wholly owned subsidiaries) with KPIT Cummins Infosystems Limited, subject to the necessary approvals. (f) Grant of 40,000 options under the ESOP 2006 Scheme of the Company.    

07-05-2010        Kpit Cummins Infosystems Limited has informed the Exchange regarding a press release dated May 7, 2010, titled "KPIT Cummins expects Fiscal 2011 revenues to grow by 25% in USD terms", alongwith Investor Update for Quarter and Year ended March 31, 2010.

07-05-2010        KPIT Cummins Infosystems Limited has informed the Exchange regarding the standalone Results for the quarter ended on 31-MAR-2010 as follows: Net Sales of Rs. 9942.37 lacs for quarter ending on 31-MAR-2010 against Rs. 10898.27 lacs for the quarter ending on 31-DEC-2009. Net Profit / (Loss) of Rs. 1481.38 lacs for the quarter ending on 31-MAR-2010 against Rs. 2158.3 lacs for the quarter ending on 31-DEC-2009.       

07-05-2010        KPIT Cummins Infosystems Limited has informed the Exchange regarding the standalone Results for the year ended on 31-MAR-2010 as follows: Net Sales of Rs. 42704.47 lacs for year ending on 31-MAR-2010 against Rs. 64418.11 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 7844.98 lacs for the year ending on 31-MAR-2010 against Rs. 6276.87 lacs for the year ending on 31-MAR-2009.         -

07-05-2010        Kpit Cummins Infosystems Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on May 07, 2010 has recommended a Dividend @ 35% for FY 2009-2010 (Rupees 0.70 per Equity Share of Rupees 2 each).

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