Cambridge Technology Enterprises Ltd. posts 360 per cent growth in revenue

Hyderabad, July 31 (ANI/Business Wire India): Cambridge Technology Enterprises Limited (CTE) today announced its un-audited First Quarter (Q1) results for the quarter ending June 30, 2008 for the financial year 2008-09.

Bhaskar Panigrahi, CEO and Chairman, CTE said, "The initial synergy of the combined company is evolving now. We are pleased with a decent growth rate across the group which is testimony to our robust integration and organic expansion plans we have put in place for FY 2009. We have substantially invested in building an excellent pipe for potential M and A candidates which should help us build on the solid foundation that we laid in FY 2008."

Krishna Nangegadda, President and Whole Time Director, CTE said, "We witnessed a consolidation of efforts to further enhance our efficiency and to optimize core delivery operations. We reorganized the corporate structure and sales/business development to realize our aggressive growth plans. This restructure will streamline the integration process and not only help our organic growth but also help reap the benefits of future acquisitions faster."

"This quarter our focus has been to consolidate the exponential inorganic growth of FY 2008 and we have invested in a three pronged strategy to help realize the synergies of the past four acquisitions- We increased investment in business development to increase customer reach to cross sell, enhanced investment in offshore to build resource base for expanding and for new business, invested in people and processes to expand the CMM-RAD capabilities across all-shore teams. These investments would help us achieve our FY 2009 targets for organic growth and enhance our profitability over the year," said Ramesh Reddy, CFO, CTE.

Highlights

Consolidated Results for April to June (Q1-09) quarter ending June 30, 2008:

-- The consolidated revenues for the first quarter were Rs. 47.49 Crores (USD 11.06 Million). Compared to revenues of corresponding period last year of Rs 10.31 Crores (USD 2.40 Million), the growth translates to over 360 pr cent Year on Year on annualized basis.

-- Profit after Tax was Rs 5.38 Crores (USD 1.25 Million) for the Q1 quarter. Compared to Rs. 1.76 Crores (USD 0.41 Million) of profit after tax for the corresponding quarter in the previous year (Q1 FY 2008) growth translates to over 206 per cent Year on Year on annualized basis.

-- Basic and Diluted Earnings per share for the period are Rs.3.40 and 2.63 respectively, on the basis of post-issue paid up capital of Rs.1582.44 lakhs.

-- Key Investments in the quarter for FY 2009 growth plan includes:

-- Enhanced business development and marketing expenses to increase reach to combined customer base and to enable cross-selling of combined services portfolio

-- Investments in people and processes to enhance resource base to meet new business demands

-- Investments to identify, evaluate and finalize potential target companies for acquisitions in FY 2009.

ANI