KPIT Cummins eyes 34-40% topline growth
Targets $98-102 million during current financial year
| The company also announced plans to open a subsidiary in Poland, which will work as a software development centre. |
| KPIT Chairman S B (Ravi) Pandit today told the company's shareholders in the annual general meeting that the operations are being expanded in Pune and consolidated in Bangalore, in addition to setting up the overseas subsidiary. |
| "Growing from $12 million to $72.93 million in four years, the company has embarked on a mission to become a $100 million company in 2006-07," he said. |
| Closing FY06 with revenues of Rs 318.21 crore and a net profit of Rs 32.56 crore "� posting a growth of 26 per cent in revenues and 16 per cent in net profits over FY05, Pandit said, was certainly not a good performance compared with the three earlier years. "But the reason for net margin to reduce is chiefly the additional outlay on facilities," he said, adding "the guidance for FY07 is revenues of $98-102 million, which implies a growth of 34-40 per cent". |
| In a bid to establish itself as a global company, KPIT Cummins is setting up a software development centre in Poland and also on the cards is consolidation of its Bangalore operations from two locations to a single centre and expansion in Pune. |
| Talking to mediapersons after the meeting, Girish Wardadkar, president and executive director, KPIT Cummins, said, "We are in the process of setting up a 100-people centre in Poland, which will be operational by September 2007 and will warrant an investment of $2 million." The company, to be christened KPIT Infosystems Central Europe Ltd, would focus on three of the company's core focus areas "� banking and financial services, manufacturing and enterprise resource planning, and SAP practice, Wardadkar said. |
| In Bangalore, where the company has two centres with 500 people carrying out operations, it is "setting up a 2,000-seater facility, which will reach full capacity within three years", said Wardadkar, adding "by the end of the year the company will have 800 people in Bangalore". |
| Commenting on the company's expansion in Pune, Wardadkar said the company has acquired 20 acres of land in phase III of the Hinjawadi software park besides the 10 acres in phase I, where it is already operational and has begun construction of its SDC II spread across 2,00,000 sq ft. |
| "Once phase II is complete, we will have a capacity for 4,000 engineers by Q2 of FY07," said Wardadkar. |
| Speaking about the upcoming campus in Hinjawadi phase III, Pandit said, "We have paid 50 per cent of the land acquisition amount of Rs 8 crore and expect to get possession of the land by the next year." |
| He further said, "We have reorganised ourselves into six lines of business "� manufacturing, DFS, automotive and industrial electronics, business intelligence, global business solutions and semiconductor solutions "� to help us achieve our goals, besides moving from a star customer model to pyramid model." |