Geometric Q1 Net falls 25% to Rs 15 cr

Engineering solutions firm Geometric today reported a 25% fall in consolidated net profit at Rs 15.40 crore for the quarter ended June 30, 2013 due to unexpected softness in its industrial vertical.

The Mumbai-headquarted firm had posted a net profit of Rs 20.66 crore in the year-ago period, it said in a BSE filing.

Consolidated revenues declined marginally to Rs 260.27 crore in April-June this fiscal from Rs 260.82 crore in the same period of 2012-13 fiscal.

Speaking on the performance, Geometric Managing Director and CEO Manu Parpia said: "While most of our verticals performed in line with our outlook, the Industrial vertical which comprises of businesses like mining, agricultural, and construction equipment experienced unexpected softness. We anticipate this weakness to continue to the end of this calendar year."

In anticipation of this slowdown, the company deferred the salary increments of employees by a quarter and therefore the impact of salary increases will be seen in second quarter, Parpia added.

"Our new organisation structure consisting of six verticals, each with P&L responsibility, came into effect this quarter. I believe this will have a strong positive impact on the performance of our organisation as we go forward," Parpia said.

Geometric's consolidated revenues stood at $46.45 million for the quarter as against $45.79 million in Q4 FY 13 and $47.80 million in Q1 FY 13.

At the end of the quarter, it had 86 active customers, and signed new deals worth $5.51 million.

Geometric provides engineering solutions, services and technologies. It employs over 4,500 people across 12 global delivery locations in the US, France, Romania, India, and China.