Kale posts robust growth, revenue up 33% in Q4

Mumbai, April 24, 2007 - Kale Consultants Limited (Kale), the leading provider of software solutions and outsourced services to the Travel & Transportation industry, has recorded operating revenues of Rs. 237.83 million for the quarter ended March 31, 2007 as compared to Rs. 179.18 million for the corresponding quarter of the previous year, a growth of 33 %.

For the year ended March 31,2007, Kale has recorded total revenues of Rs. 808.27 million as compared to Rs. 637.19 million during the previous year, a growth of 27%. Operating profit stood atRs.206.42 million compared to Rs. 178.41 million during the previous year.

Commenting on the performance, Mr. Vipul Jain, CEO & Managing Director said, "We have had a strong customer acquisition in the last quarter and have a very healthy order book entering into FY 08. Our singular focus on the travel and transportation industry, deep domain knowledge, innovation and a solutions mind set continues to differentiate us. As we launch our new strategy later this year, we will accelerate growth both organic and inorganically."
Operational Highlights for the Quarter ended March 31, 2006

1. SAS Cargo, Scandinavia’s largest cargo carrier, signed up for Kale’s CSP-AMBER® - cargo revenue accounting solution. Kenneth Marx, President and CEO of SAS Cargo said, "In order to remain competitive we have gone through a process where we examined every aspect of our business - and this included back-office functions such as revenue accounting. To justify change we needed a solution that would offer substantial improvements in terms of operational cost savings and financial accuracy and flexible enough to support the varied accounting demands of our affiliated carriers and partners. We also wanted a solution that was proven in the marketplace and supplied by a company that we felt would deliver on its promise. For these reasons we chose CSP-AMBER® from Kale Consultants."
2. A North African Airline has selected Kale for Outsourced Passenger Revenue Accounting solution and Outsourced Cargo Revenue Accounting Solutions.
3. An Indian International Airport has selected Kale for consultancy on their infrastructure restructuring.
4. One of the largest Middle Eastern Airlines has signed on Kale for its Cargo Audit Services. The same airline has also outsourced its proration services to Kale MPS®.
5. A major Indian Airport has awarded Kale the contract to develop and deploy a web-based custodian system.
6. A large Middle Eastern airline has signed on Kale for the in-house implementation of Passenger (REVERA®) and Cargo Revenue Accounting Solution (CSP-AMBER®).
7. An Airline in the Indian Sub-continent has awarded Kale the contract for implementing REVERA®, Passenger Revenue Accounting solution, in a hosted environment.

Future Outlook

The airline industry is seeing robust growth, both in passenger and cargo business and this growth is likely to continue. The Travel and Hospitality industry, similarly is growing in both business and leisure segments as is the logistics industry. But along with this growth are lower yields and therefore pressure on profitability, increased competition and huge change in distribution channels driven by internet and e-commerce.

In summary a time of opportunity as well as challenges and certainly one of far reaching change in industry structure and players. In response to these trends, customers are looking for IT and outsourcing solutions that help them enhance yields, manage and protect revenue and reduce costs. They are also looking at how to simplify the business and leverage the growth of ecommerce. There is growing acceptance of outsourcing - both IT and Business Processes. Customers are also preferring solution providers who understand their business and can provide the benefits of both outsourcing and transformation.

Kale is seeing increasing traction on all its solution areas - revenue accounting and management, air cargo management, travel and hospitality technology and logistics solutions. Kale has also won respect and industry acceptance for its solutions and passion for innovation. All of these provide confidence that Kale will be able to accelerate growth and sustain profitability in the coming years.

Source : Equity Bulls

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