This global technology company specializing in providing IT Consulting and Product Engineering solutions and services to Automotive, Manufacturing, Energy & Utilities and Life Sciences companies, ended Q2FY16 on a super note. Net profit stood at Rs.75 crore, up 69% sequentially and this was on a 7% rise in revenue at Rs.812 crore. On dollar terms, $ revenue grew 5% at $124 million. EBITDA margins improved by 441 bps to 14% after absorbing wage hikes (QoQ). The company gave wage hikes during the quarter, averaging 8% for offshore and 2% for onsite employees. The gross impact of wage hikes during the quarter was in the range of 200 bps to 225 bps. Dollar vis-à-vis the rupee during the quarter had a realized rate at Rs.65.20/$ as against Rs.64.09/$ in Q1 FY16. The positive impact of the rupee depreciation on EBITDA margins was around 60 bps to 70 bps during the quarter.

In terms of verticals, the SBUs Products & Platforms (P&P) grew by 21.5% followed by SAP and Product Engineering Services (PES) with 9.4% and 9.2% respectively. There was a marginal decline of 0.1% in Integrated Enterprise Solutions (IES) and growth of 0.4% in Enterprise Solutions (ES). In terms of geography, there was growth across all markets as Europe and APAC grew by 14.9% and 14.6% respectively followed by US with 1.2% growth.  Amongst the top customers, our top client grew by 5.4%, there was also growth of 3.1% in top 2 to 10 customers however there was a decline of 1.2% in the top 2 to 5 customers.

Cash Balance at end of Q2FY16 was at Rs.440 cror v/s Rs.351 crore in Q1. Total debt was at Rs.448 crore. Thus net debt on the books as at September 30, 2015 was Rs.8 crore.