Cranes Software’s consolidated Q1 FY 2004 revenues up 62% at Rs. 135.65 million

PAT increases 74% to Rs. 36.25 million - Q1 FY 2004 EPS at Rs. 4.29


Mumbai, July 31, 2003: Cranes Software International Ltd. (CSIL), a global scientific and engineering software solutions provider, today announced its unaudited results for the quarter ended 30^th June 2003.

Commenting on the performance for Q1 FY 2004, Mr. Asif Khader, Managing Director, Cranes Software International Limited, said:

"We are singularly focused on our core competence of assessing and aligning with the requirements of scientists and engineers worldwide. The performance reported in the first quarter and the ongoing financial improvements we continue to deliver clearly signifies the success of this strategy. We have made encouraging progress across our business segments, extending our software products with several new introductions developed by leveraging our R&D competencies effectively. At the same time, we have invested in developing IP in technologies of the future that we are confident will enhance our visible business horizon thereby creating long-term benefits for all our stakeholders."

Group performance review:

Corresponding quarter performance: Q1 FY 2004 (April - June 2003) v/s Q4 FY 2003 (April - June 2002)

• Net sales grow 62% to Rs. 135.54 million compared to Rs. 83.66 million.
  
• EBITDA higher by 97% at Rs. 67.95 million from Rs. 34.50 million.
  
• Net profit after tax increases 74% to Rs. 36.25 million from Rs. 20.84 million.
  

• Net sales grow 65% to Rs. 113.18 million compared to Rs. 68.39 million.
  
• EBITDA higher by 106% at Rs. 67.68 million from Rs. 32.81 million.
  
• Net profit after tax increases 91% to Rs. 36.70 million from Rs. 19.25 million.
  

• CSIL acquired a range of statistical and mathematical software products over last year. Since then, it has created strong Bangalore-based R&D capabilities to deliver enhancements on its proprietary range, aligning product features to the rapidly changing user requirements. This strategy continues to yield encouraging results as Systat version 10.2, TableCurve 3D version 4.0 and Peakfit version 4.11, all introduced over the last twelve months, have been extremely well received in user markets and have driven the growth in financial performance. Further version releases are part of an ongoing process and
  
  

• CSIL has recently adopted the strategy of focusing on specific verticals. The Company has collaborated with the Central Manufacturing Technologies Institute (CMTI) to address the research requirements of manufacturing industries. CSIL will help productize CMTI’s significant expertise in manufacturing research and also create the sales pipeline to take the offering to the market. This partnership holds immense potential but is only the first of many such vertically oriented initiatives.
  
  

• CSIL’s expertise and experience in addressing the specific requirements of scientists and engineers worldwide has enabled the Company to forge multiple product alliances. Ongoing enhancements to CSIL’s software product distribution portfolio provide Indian scientists access to globally leading software.
  
  

  • Matlab’s Communication Blockset 2.5 was made available as a part of CSIL’s ongoing alliance with its principal, the Mathworks Inc. The tool facilitates an improved design environment for communication engineers, facilitating faster time-to-market and lower risk of design failure.
    
    

  • With the availability of Matlab’s SimMechanics 2, engineers can achieve significant time / cost savings through improved design capabilities.
    
    

  • Also made available was its U.S.-based principal AdventNet Inc.’s Web NMS 4.0 tool that enables delivery of network management solutions for a wide range of telecom and networking domains.
    
    

• Customer perspective: CSIL engaged several marquee clients during the quarter for its range of software products including Johnson & Johnson, Intel, Unilever, Bayer Healthcare, Colgate Palmolive, Glaxo Smithkline, Pfizer, Honeywell, Harvard Medical School, John Hopkins Institute and the U.S. Forest Service. In India, existing engagements were extended with leading corporates such as GE ITL, Delphi Automotive and Infineon.
  
  

• HR perspective: the CSIL Group added 17 employees during the quarter taking the aggregate headcount to 212. Hiring was focused towards enhancing existing offshore R&D capabilities in India, sales and marketing resources in India and the U.S. as well as additions in Cranes Varsity’s technical training business.