Geometric

Geometric, an IT consulting and software company, declared its Q4FY15 numbers and it was disappointing to say the least. The company actually posted a loss at PAT levels of Rs.94 lakh for the quarter but after prior period adjustments of Rs.4 crore, the company ended with an adjusted net profit of Rs.3 crore, down 80% (QoQ).  EBITDA margin more than halved from 14.6% to 6.6%. The profits were impacted by both fall in revenue and unusual items in G&A expenses.

Revenue in US$ for the quarter was at $43 million, down 8% (QoQ) and in rupee terms, it was down 7% at Rs.268 crore.  Apart from the falling topline, the company had exceptional expense to the tune of Rs.6 crore. It had Rs.9 crore impact on account of correction on account of switch over to new ERP. There was also a forex loss of Rs.3 crore. Decline in sequential revenues is attributable mainly to sharp decline in Euro & reversal of revenues on account of issues arising from ERP switch over, as well as other factors including delays in projects starting. In addition, the Aerospace unit also saw a dip in QoQ revenues since the unit had a significant one time software license revenue in Q3.

In terms of geography, only USA saw a QoQ growth at 61.64% v/s 58.42%; rest all showed a decline – Europe fell from 28.68% v/s 25.93%, APAC fell to 5.8% from 6.34% and India fell from 6.55% to 6.63%. It has 63 active clients and in Q4, it added 5 new in the less than one million category. It lost three clients in the $1 to $5 million category. Its employee at end of FY15 stands at 4807. Attrition has increased from 12.2% to 13.8% (QoQ).