Mumbai: Mid-tier software services company Geometric Ltd on Monday posted a 6% dip in December-quarter net profit, but analysts cheered the 29% jump in revenue due to strength in its engineering services segment.
The company, which provides products, software and engineering services to industries such as automotive, aerospace and defense, and heavy engineering, posted a consolidated net profit of Rs 15.2 crore on net sales of Rs 163 crore.
“It looks extremely encouraging. It seems like the automotive and manufacturing industry is picking up so even KPIT had a similar kind of topline growth,” an analyst who did not wish to be named said.
Last week, peer KPIT Cummins posted an 18% jump in October-December net profit and saw its revenue soar 48%.
Geometric, which has 111 active customers, said its revenue from engineering services segment shot up 64%.
“If they keep up the momentum even the March quarter looks very encouraging,” the analyst said.
The company saw its expenditure jump 36% to Rs 145 crore due to higher employee costs and travelling expenses.
Revenue rose 28.6% to Rs 163 crore. “We were able to deliver on this growth, while sustaining our margins, even after absorbing the impact of mid-term salary hikes, variable pay, and increase in training costs,” chief executive Ravishankar G. said in a statement. The company, which has a headcount of 3,659, added 10 new customers during the quarter amounting to new business of $9.42 million.
Shares of Mumbai-based Geometric, which the market values at Rs 508 crore , closed down 1.66% at Rs 80.15 in the Bombay Stock Exchange.