MUMBAI: Rolta India Limited, a
leading provider of innovative IT solutions for many vertical segments,
including Federal and State Governments, Defence and Homeland Security,
Utilities, Process, Power, Banking and Insurance, today announced
unaudited financial results for quarter ended September 30, 2013(Q1 FY-14).
- Consolidated Revenue for Q1 FY-14 at Rs.627.77
cr (Rs. 6.28 Billion) against Rs. 470.14 cr (Rs. 4.70 Billion) in Q1
FY-13, registering a Y-o-Y growth of 33.5% and Q-o-Q growth of 2.5%.
- Consolidated EBITDA for Q1 FY-14 at Rs. 239.34 cr (Rs. 2.39 Billion)
against Rs. 212.57 cr (Rs. 2.13 Billion) in Q1 FY-13, registering a
Y-o-Y growth of 12.6% and Q-o-Q growth of 5.3%.
- Consolidated Profit after Tax for Q1 FY-14 at Rs. 70.26 cr (Rs. 0.70
Billion) against Rs. 63.21 cr (Rs. 0.63 Billion) in Q1 FY-13,
registering a Y-o-Y growth of 11.1%. PAT for the quarter ended September 30, 2013 is strictly not comparable with the sequential quarter ended June 30, 2013 as it includes an exceptional item of additional depreciation.
Commenting on the results, Mr. K. K. Singh,
Chairman and Managing Director said, "We are very encouraged by the
continued positive response we are receiving for our solutions based on
Rolta's intellectual property (IP). We now have a rich repository of
sophisticated field-proven solutions that are helping us to monetize our
extensive investments through higher IP based revenues and longer term
India's Companies Act 2013 has
inserted a provision for rotation of auditors. In anticipation of the
provision being made effective, the Board of Directors has recommended
the appointment of Walker, Chandiok & Co. (WCC) as Statutory
Auditors of the Company in place of retiring auditors Khandelwal Jain
& Co. at the ensuing Annual General Meeting on November 23, 2013. WCC is registered with the Institute of Chartered Accountants of India
as well as the PCAOB (US Public Company Accountancy Oversight Board).
For multinational companies and other organisations with international
operations or interests, WCC has access to Grant Thornton
member firms in other countries that adopt the same rigorous standards,
and utilise the same tools and methodologies. WCC is recognized as one
of the largest accountancy and advisory firms in India
with presence in 9 cities, 20 partners and 850+ employees. Grant
Thornton (GT) has been auditing the Company's financial statements
prepared under IFRS for seven years. GT is one of the world's leading
organizations of independent assurance, tax, and advisory firms. Its
2012 combined global revenues were US$4.2 billion. GT has a presence in 100+ countries, 530 offices, 2,600 partners and 35,000 personnel.
To further strengthen its corporate governance, the Company's Board
has decided that the retirement age of the Executive Chairman,
Whole-time Directors, and Independent Directors shall be 75, 70 and 80
years, respectively. Accordingly, the composition of the Rolta Board
will undergo a change with effect from the forthcoming AGM. Mr. R.R. Kumar will be retiring after 24 years of illustrious service to the Company as a Director. Similarly, Mr. A.P. Singh, after serving Rolta on the Boards of various group companies for 30 years as Whole-time Director will also retire.
The Company continued to strengthen its infrastructure, especially
its managerial and technical resources. A number of highly skilled and
experienced persons were inducted to enhance subject-matter expertise,
industry knowledge, and sales effectiveness in all geographies. The
Company also improved compensation packages of its existing employees by
an average of 10% in India and 3.5% in
other international locations. In spite of such increase in employee
cost that became effective at the beginning of the quarter, EBITDA
margins have shown a healthy improvement due to the Company's IP-led
Rolta continues to win projects in the areas of Geospatial,
Engineering, IT and Defence & Security, even more so when it is able
to combine its strengths in these areas. This is true for all
geographical regions, vindicating Rolta's strategy of offering
preconfigured but customized solutions that leverage Rolta's deep domain
knowledge, its intellectual property, IT expertise and industry focus.
Each one of the examples below, pertaining to last quarter illustrates
the Company's success in leveraging Rolta IP in a variety of high-growth
sectors. The pipeline is also steadily undergoing a qualitative
improvement, with larger, more sophisticated projects and greater
contribution from Rolta IP.
Defense and Homeland Security:
- In the Defence and Homeland Security (HLS) sector, the Company continues to strengthen its leadership position.
- For example, Rolta's war gaming solution is becoming the standard
for Indian defense, after wins and implementations at various key
military organizations. Now, the Company has been invited for award of
contract by the apex Indian war gaming agency.
- Major HLS organizations continued to repose confidence in Rolta's
offerings and now even the central secret services are finalizing on the
Company's sophisticated solutions.
- Plans for setting up an Optronics manufacturing plant in
collaboration with a leading manufacturer of global standing are at an
advanced stage to address the opening demand from police, paramilitary
forces and defence.
- Defence Procurement Policy 2013 of MoD, India
stipulates that qualified indigenous vendors shall be given first
preference, and imports the last. Rolta is one of the very few select
companies qualified to bid for 'Make India' programs under the Policy
and is very well positioned for large multi-billion dollar programs like
Battlefield Management Systems, especially since the Company is also
the incumbent with its solutions already deployed at various field
Enterprise Geospatial and Engineering:
- Rolta is seeing increased traction in the area of 3D city modeling,
with focus shifting towards building a mapping infrastructure that can
help to improve citizen services, including safety and security. Rolta
has won its second 3D multi-million dollar mapping project in the Middle East.
There are other municipal and government bodies actively pursuing
similar approaches, and as an early mover in this complex field with a
proven track record, Rolta is well placed to get significant business
from other customers in Middle East.
- Rolta won a prestigious contract from the apex mapping agency of a
major mid-eastern country for design and development of a GIS portal,
including the necessary IT infrastructure, to serve the entire country.
This solution will leverage Rolta's Geospatial expertise and IP.
- A large contract was signed with one of the world's largest infrastructure companies in Japan, for design and detailed engineering, and Engineering IT services for a hydrocarbon facility in the Middle East.
- In India, the Company successfully
completed a complex project for Laser Scan based As-Built Engineering
for country's largest Exploration & Production Company.
- Canadian governmental agencies awarded a follow-on GIS Services
contract to Rolta for extending and enhancing their Rolta OnPointâ¢
- Rolta received a large contract for implementing a solution for Land Management in Namibia, to modernize land records and use by exploiting the power of Rolta Geospatial IP, combined with domain expertise.
- The Company was also awarded contracts for specialized GIS related consulting and services in Saudi Arabia, Oman, Dubai, and Qatar. These wins are important door openers and should result in substantial follow on business.
Business Intelligence, Big Data and Analytics
- Rolta was selected by the largest chip manufacturer in the world to
drive their global strategic program on "Self-Service BI" to give the
power of BI and Analytics to their business users. Rolta was awarded
this critical project because of its unique Rolta SmartMigrateâ¢ based
automated solution, and its strong BI and Big Data Analytics expertise.
Rolta will play a key role in deploying this ambitious solution at the
customer's business units spread across the world.
- One of the top 20 independent commercial bank holding companies in the U.S., with $83 billion
in assets and more than 725 branch offices, awarded a contract for
Hyperion planning for EPM implementation. Rolta won this contract due
to its specialized IP and expertise on the Oracle stack.
- Rolta won a contract from a major UK Water Utility for "smart"
assets updates reporting for business efficiencies and for regulatory
compliance by leveraging its expertise in Business Intelligence and
Analytics, based on Rolta OneViewâ¢ architecture. This is a
path-breaking application that would be applicable to other utilities in
UK and other similar agencies in Europe.
- A leading chemicals company in Qatar
selected Rolta for helping them craft their strategy for operational
excellence based on Rolta's flagship BI/Analytics solution, Rolta
OneViewâ¢. This is a precursor to large scale implementation of business
IT Infrastructure Consulting and Managed Services
- A major distributor of more than five million products representing
over 4,000 world-class manufacturers, awarded a multi-million dollar,
multi-year contract for managed services covering SAP's ERP
applications, providing both functional and technical support.
- Similarly, the 2nd largest PC manufacturer in the world awarded a
major project to support Oracle EBS R12 upgrade, Hyperion planning and
Data Relationship Management.
- In the Utilities space, a provider of electricity to 9 million
people in various southeastern states in the U.S. entrusted the Company
with a project for enterprise data warehouse redesign as a precursor to
implementing BI and Analytics.
- A long-standing Managed Services client, one of the leading global
manufacturers of plastic products has called upon Rolta to provide
consulting services for an Oracle Fusion Financial Applications
implementation. Rolta is being recognized as one of the very few
companies globally who has the expertise with unique IP for acceleration
and accuracy of migration, which positions the Company as a premier
service provider for Oracle Fusion implementations.
- Rolta architected and implemented new information back-up and
disaster recovery processes and systems for a large, state operated
Health Care organization, in US and at a global leader in the Metals
- The Company also designed and implemented new software defined
distributed networking architectures for a global Retailer, and another
for a major Medical Products company; built the IT infrastructure to
support a new customer focused application for a regional utility
- Rolta won a World Bank funded multi-crore project in India
to deliver a comprehensive solution for Rural Livelihoods promotion in
Bihar. Rolta's win is evidence of its strong ERP expertise, a proven
e-Governance solution framework, and an enviable track record of
delivering complex projects for Government organizations such as NICSI
and various state organizations. This solution could become a template
for implementing similar applications for other states in India.
About Rolta: : Rolta is a leading provider of
innovative IT solutions for many vertical segments, including Federal
and State Governments, Defense/HLS, Utilities, Process, Power, Financial
Services, Manufacturing, Retail, and Healthcare. By uniquely combining
its expertise in the IT, Engineering and Geospatial domains, Rolta
develops exceptional solutions for these segments. The Company leverages
its industry-specific know-how, rich repository of intellectual
property that spans photogrammetry, image processing, geospatial
applications, business intelligence, analytics, field-proven solution
frameworks, and deep expertise in cutting-edge technologies like Geo BI,
Cloud computing, Software Defined Infrastructure and Big Data for
providing sophisticated enterprise-level integrated solutions. Rolta is
a multinational organization headquartered in India.
The Company operates from 40 locations worldwide through its
subsidiaries, and has executed projects in over 45 countries. The
Company benchmarks its quality processes to the world's best standards,
like successful assessment for Software Application Development and
Maintenance at the highest Level 5 of SEI's CMMIÂ® version 1.3. Rolta is
listed on the Bombay Stock Exchange & National Stock Exchange, and
forms part of various indices on BSE/NSE in India.
The Company's GDRs are listed on the Main Board of London Stock
Exchange. The Company's 'Senior Notes' are listed on Singapore Stock
Disclaimer: This press release includes statements that are
not historical in nature and that may be characterized as
"forward-looking statements", including those related to future
financial and operating results, benefits and synergies of the Company's
brands and strategies, future opportunities and the growth of the
market for open source solutions. You should be aware that Rolta's
actual results could differ materially from those contained in the
forward-looking statements, which are based on current expectations of
Rolta management and are subject to a number of risks and uncertainties,
including, but not limited to, Rolta's ability to integrate acquired
operations and employees, Rolta's success in executing its strategies,
Rolta's ability to take a competitive position in the industry, business
conditions and the general economy, market opportunities, potential new
business strategies, competitive factors, sales and marketing
execution, shifts in technologies or market demand, and any other
factors. The Company may make additional written and oral
forward-looking statements but do not undertake, and disclaim any
obligation, to update them.
For additional information please visit http://www.rolta.com, or contact:
Jt. MD & COO - Domestic Operations
Member of the Board
President - Americas
Member of the Board
President - Business Operations:
Europe, Middle East and Africa
Director Finance & CFO
Member of the Board
SOURCE Rolta India Limited