Kale emerges stronger after restructuring

Mumbai:
31 May 2004

Mumbai: Kale Consultants' restructuring exercise undertaken last year has enabled it to emerge as a more focused and strong solutions provider to the airline and travel industry, say company sources to the company.

A leading provider of software solutions and outsourced services to the airline and travel industries, Kale Consultants undertook a strategic operations restructuring exercise during 2003 to focus more on the airlines and travel vertical. The restructuring involved the sale of its software business with Citibank / OrbiTech, the sale of its banking products business, formation of a subsidiary company to carry on contracting and generic software services business and the acquisition of Cognosys, a travel technology company with cutting edge products and leading customers.

For the year ended March 31, 2004, Kale Consultants has recorded total revenues of Rs481.37 million as compared to the previous year's Rs507.01 million, despite the revenue loss due to the restructuring. The discontinued business contributed Rs152 million in the last financial year.

The core business of airline products and services has continued to show steady growth with a 5 year CAGR of 32 percent. The company has declared a PAT of Rs31.66 million compared to Rs31.42 million last year, despite the lower top line reflecting the improved profitability of the restructured business.

For the year ended March 31, 2004, the company has recorded consolidated total revenue of Rs570.61 million and net profit of Rs35.18 million. For the fourth quarter ended March 31, 2004, consolidated total revenue stood at Rs200.34 million and net profit at Rs24.32 million.

Consolidated EPS for the year amounted to Rs3.06. The above results mainly reflect the performance of the core airlines and travel divisions, after disengagement of non-core businesses.