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 December 31, 2013 (Q2 FY-14).
- Consolidated Revenue for Q2 FY-14 at Rs.759.17 cr (Rs.7.59 Billion) against Rs. 627.77 cr (Rs. 6.28 Billion) in Q1 FY-14, registering a Q-o-Q growth of 20.9% and Y-o-Y growth of 44.2%.
- Consolidated EBITDA for Q2 FY-14 at Rs. 285.06 cr (Rs. 2.85 Billion) against Rs. 239.34 cr (Rs. 2.39 Billion) in Q1 FY-14, registering a Q-o-Q growth of 19.1% and Y-o-Y growth of 32.5%.
- Consolidated Profit after Tax for Q2 FY-14 at Rs. 74.61 cr (Rs. 0.75 Billion) against Rs. 70.26 cr (Rs. 0.70 Billion) in Q1 FY-14, registering a Q-o-Q growth of 6.2% and Y-o-Y growth of 6.0%.
- Consolidated Revenue for six months FY-14 at Rs. 1,386.94 cr (Rs.13.87 Billion) against Rs. 996.62 cr (Rs. 9.97 Billion) in FY-13, registering a Y-o-Y growth of 39.2%.
- Consolidated EBITDA for six months FY-14 at Rs. 524.40 cr (Rs. 5.24 Billion) against Rs. 427.69 cr (Rs. 4.28 Billion) in FY-13, registering a Y-o-Y growth of 22.6%.
- Consolidated Profit after Tax for six months FY-14 at Rs. 144.87 cr (Rs. 1.45 Billion) against Rs. 133.60 cr (Rs. 1.34 Billion) in FY-13, registering a Y-o-Y growth of 8.4%.
- The Company had adopted July 1 to June 30 Financial Year as its accounting practice. The Companies Act 2013 has now prescribed a uniform Financial Year ending March 31 for all Indian Companies. The Company's Board of Directors has, therefore, decided to end the current financial year on March 31, 2014 (instead of June 30, 2014). Therefore, the current financial year will be for a period of nine months up to March 31, 2014. Subsequent financial years shall commence on April 1 and conclude on March 31.
Commenting on the results, Mr. K. K. Singh, Chairman and Managing Director said, "We are very pleased with the progress we are making in monetizing our investments in creating an IP-led business. We are now getting much larger orders, including repeat business from existing customers. These represent an expansion of the Company's footprint within customers' IT landscape, and include IP and annuity revenues, with on-going engagements for managed services."
The Company announced that its Promoters increased their share holding in the Company from around 40% to over 50% through creeping acquisitions over the last three years. The Promoters continue to increase their holdings further through creeping acquisitions in line with SEBI guidelines. This is evidence of the confidence that the Promoters have in the business model of the Company, the superiority of its offerings, and the growth potential of the Company.
Rolta's products and solutions are receiving increasing attention from industry analysts. Rolta OneView was positioned by NASSCOM/Frost & Sullivan in the top right "Exemplars" quadrant in their Product Excellence Matrix ("PEM") for Analytics products in their report published in November 2013. Exemplars are defined as: " vendors that have a well-defined growth strategy and successful execution plan". In a second PEM that reflects the market focus from "narrow" to "wide", and level of maturity in the market from "entry" level to "established", Rolta OneView was once again placed in the top right quadrant, conveying that it is an established product with wide applicability in many vertical segments.
Rolta's strategic partnership with SAP announced in this quarter is a noteworthy development not only because it is another testimonial of the Company's differentiated offerings for Business Intelligence (BI), Big Data and Analytics, but also for the scope of the alliance. Under the agreement, Rolta will provide customers across the world with cutting-edge solutions designed to exploit the power of SAP technology by combining Rolta's products with almost the complete database and technology portfolio offered by SAP. This effectively enables Rolta to sell SAP products cost-effectively, bundled with its own IP anywhere across the world without having to depend on SAP's distribution channels.
On the other hand, Rolta is working with SAP to have Rolta OneView included in their "Preferred Partner Solution" program as a precursor to its inclusion in the SAP global price-book. This will enable SAP's global sales force to sell the Rolta solution, which will dramatically increase the market penetration of Rolta OneView as it will reach SAP's 250,000+ customers.
Rolta has transformed its data center to a world-class private Cloud infrastructure with 100% virtualization. Besides providing scalability and agility to Rolta's own organization, it is also used for delivering Rolta solutions and IP on the Cloud. Rolta is working to make Rolta OneView and its many other solutions available on SaaS (software as a service) model by leveraging Rolta GeoCloud.
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. Rolta has strengthened its position in significant industry segments like Banking, Finance, Insurance, Manufacturing, Retail and Healthcare, apart from the traditional Rolta segments like, Oil & Gas, Utilities, Government, Infrastructure, and Defense & Security, where it remains strong. The pipeline is, therefore, 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 has continued to strengthen its leadership.
For example, Rolta is one of the few companies who have been invited to respond to the largest C2 defence 'Make India' program being undertaken by the Indian Army (estimated to be worth over Rs. 30,000 Crores / $ 5.0 Bn). With its incumbent software provider status, state-of-the-art indigenous GIS and C2 software that has been deployed and proven operationally at various field formations and cutting-edge communication solutions, Rolta is in an exceptional position to address this project. In fact, some of the world's leading defence contractors have approached Rolta to not only partner the Company for this program but to also source Rolta software and solutions for their global projects.
Major HLS organizations have continued to repose confidence in Rolta's offerings with even more police forces in different cities/states, like Mumbai, Chandigarh, UP and Maharashtra finalizing on the Company's sophisticated solutions.
Enterprise Geospatial and Engineering Solutions:
Rolta continues to win projects for Engineering Information Management from various verticals within the process industry. These include assignments for as-built modeling to create repositories of validated data that serve as the foundation for enterprise level BI and Analytics.
Similarly, the Company continues to make significant inroads with its geospatial solutions. The Company won a prestigious $25M+ project for 3D city modeling from Abu Dhabi City Municipality. This is an ambitious project designed to fulfill the challenges of sophisticated analysis and simulation for town planning, infrastructure development, environmental management, homeland security and emergency response. Rolta will leverage its Geospatial Fusion solution framework and various special-purpose software tools.
Rolta is seeing increased traction in the area of 3D modeling, with focus shifting towards building a mapping infrastructure that can help to improve citizen services, including safety and security. There are many municipal and government bodies actively pursuing similar approaches. In fact, Rolta has already received another order for 3D City modeling in Saudi valued at $4M+. Similarly, another example is an innovative solution for a 3D Soil Mapping system built on the Rolta Geospatial Fusion platform in Dubai, which incorporates predictive analytics and 3D visualization capabilities. 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 in this specialized segment worth hundreds of millions dollars.