Kale posts net profit of Rs 31.66 million

Mumbai: Kale Consultants Limited, the of software solutions and outsourced services to the airline and travel industries, has undertaken a strategic restructuring exercise of its operations during the year to focus more sharply on airlines and travel vertical

The restructuring involved sale of software business with Citibank / OrbiTech , sale of banking products business, formation of Subsidiary company to carry on contracting and generic software services business and acquisition of Cognosys, a travel technology company with cutting edge products and leading customers.Post restructuring, Kale has emerged a very focused and strong solution provider to the airline and travel industry.

For the year ended March 31,2004, the company has recorded total revenues of Rs 481.37 million as compared to Rs 507.01 million in the previous year despite the revenue loss due to the restructuring. The discontinued business had contributed Rs 152 million in the last financial year. The core business of airline products and services has continued to show steady growth with a 5 year compound annual growth rate of 32 per cent.

The company had a profit after tax of Rs 31.66 million, compared to Rs 31.42 million last year, despite the lower top line.This reflects the improved profitability of the restructured business.

For the year ended March 31, 2004, the company has recorded consolidated total revenue of Rs. 570.61 million and net profit of Rs. 35.18 million. For the fourth quarter ended March 31, 2004, consolidated total revenue was Rs. 200.34 million and net profit was Rs. 24.32 million.

Consolidated EPS for the year amounted to Rs. 3.06. The above results mainly reflect the performance of the core airlines and travel divisions, after disengagement of non-core businesses.

Commenting on the performance, Vipul Jain, managing director said, " Post restructuring, our company has become a pure play in airlines and aravel vertical.We plan to grow in the chosen areas of revenue accounting, cargo and travel distribution, by providing the entire continuum from software, hosted solution and outsourced services. With the synergy of domain knowledge, marquee customers, IPR and brand, we are poised for a profitable, scalable and sustainable growth."