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KPIT Cummins sees rev push from govt, defence deals

KPIT Cummins sees rev push from govt, defence deals
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First Published: Fri, Oct 29 2010. 03 47 PM IST
Updated: Fri, Oct 29 2010. 03 47 PM IST
Mumbai: KPIT Cummins Infosystems Ltd , a product engineering and IT consulting firm, expects defence and government contracts to account for 10-15% of revenue in the next 3-4 years, a top official said on Friday.
Currently, the two segments jointly account for 2% of revenue.
“We are quoting for larger projects, but it will take one or two years,” managing director and chief executive Kishor Patil said.
Last year, KPIT Cummins decided to foray into the domestic market by venturing into government and defence contracts.
The company provides product design, engineering and IT solutions for government and defence needs such as transportation, unmanned vehicles, hybridisation, and e-governance, Patil said.
Earlier in the day, KPIT Cummins posted a 12% growth in its September-quarter profit, helped by strong growth across geographies such as the US, China and India.
“With the strong organic growth in Q1 and Q2, we are very confident of reaching our annual revenue growth projection,” chairman & group CEO Ravi Pandit said in a statement.
The company, which works with automotive and semiconductor firms, had earlier forecast a minimum profit growth of 5% on a revenue growth of 25% in FY11 in dollar terms.
Patil expects the automobile segment to grow faster, at about a 30% rate, in the current fiscal.
KPIT Cummins, which added 13 new customers in the quarter, posted a consolidated net profit of Rs237.49 million against Rs211.95 million the year ago.
In a separate statement, the company said its board has approved an increase in authorised share capital from Rs300 million to Rs750 million.
Shares of the company, which have gained more than 17% in three months, closed down 6.58% at Rs156.20, while the larger Mumbai market ended down 0.33%.
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First Published: Fri, Oct 29 2010. 03 47 PM IST