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Hyderabad, India – 14thFebruary 2019: Kellton Tech Solutions Ltd. (BSE & NSE: KELLTONTEC), a global leader in digital transformation serving startups to Fortune 500 companies, announced today its financial results for Third Quarter & Nine Months FY19 ended on 31st December 2018.
Review of financial performance for 9M FY19 ended 31st December 2018
- Total Revenue was Rs 6,281 million during the nine-month period under review as compared to Rs 5,713 million during the corresponding period in the previous year reflecting a growth of 9.9% on a Y-o-Y basis.
- The Company reported an EBITDA of Rs 930 million in 9M FY19 as compared to an EBITDA of Rs 846 million during the corresponding period in the previous year reflecting a growth of 9.9% on a Y-o-Y basis.
- The EBITDA margin for 9M FY19 stood at 14.8%.
- Net profit stood at Rs 574 million for 9M FY19 as compared to Rs 461 million in the corresponding period of the previous year reflecting a growth of 24.6% on a Y-o-Y basis.
- Diluted EPS stood at Rs 5.93 for 9M FY19 as compared to Rs 4.75 in the corresponding period of the previous year, up by 24.8% on Y-o-Y basis.
Review of financial performance for the quarter ended 31st December 2018
On a year-on-year basis:
- Total revenue was Rs 2,078 million during the quarter under review as compared to Rs 2,108 million during the corresponding period of previous year reflecting a decrease of 1.4% on Y-o-Y basis.
- The Company reported an EBITDA of Rs 295 million for the quarter under review as compared to Rs 316 million during the corresponding period of previous year, registering a decrease of 6.7% on Y-o-Y basis.
- The EBITDA margin for the quarter under review was 14.2%.
- Net profit stood at Rs 185 million for the quarter under review as compared to Rs 170 million in the corresponding period of previous year, up by 8.8% on Y-o-Y basis.
- Diluted EPS stood at Rs 1.84 for the quarter under review as compared to Rs 1.67 in the corresponding period of previous year, up by 10.2% on a Y-o-Y basis.
Operational Highlights of Q3 FY19
- Kellton teamed up with BitSync2018—The Largest BITS Alumni Conference in the US—as the official mobile app partner.
- Kellton was the mobile app partner for Nasscom Design & Engineering Summit and Nasscom Product Conclave.
- The overall muted growth in Q3-FY19 was primarily due to seasonality and furloughs in the USA for the calendar year, lower order from the significantly larger customer from phase II of Mauritius project and sale of the subsidiary, Bokanyi Consulting in March 2018, reducing its contribution from the total revenue.
- The company has significantly ramped up its India hiring to cater to increased demand from existing clients and it is also witnessing good upcoming demand from Non-government related companies in India.
New Client Wins during Q3 FY19
Acquired 13 new clients during the quarter, some big wins are:
- Deploying location-based cargo services for the US-based manufacturer of bottled water and soft drinks
- Building digital capabilities to enhance platform features and deliver digital ads to Fortune 500 companies for a UK-based Product Company
- Delivering an end-to-end wealth management solution for a premier investment company
- Revamping patient services to improve outcomes of a leading provider of surgical imaging platform
- Optimizing the supply chain for a global telecom firm by delivering an analytics solution
- Deploying an integration solution to deliver new capabilities for a global leader in engineering and technology services
- Implementing a digital asset management platform to automate processes for one of the largest media house in the US
Commenting on the results, Mr. Niranjan Chintam, Chairman & Whole-time Director, Kellton, said: “We have recorded steady growth in this quarter and gained huge traction in the IoT business in Europe and the APAC region. While gearing up to fuel the next level of growth, we are expanding our existing portfolio to deliver high-quality service to our customers. This quarter, with 13 new clients, we also continue to focus on maintaining stable win ratios and investing in people and technologies to stay relevant in the market”
About Kellton Tech Solutions Ltd.
Kellton is a ‘Born Digital’ technology consulting and services company founded on the belief of ‘Infinite Possibilities with Technology.’ The Company has helped startups to Fortune 500 clients build disruptive Digital Transformation solutions and leverage technology as a competitive differentiator for their businesses. Driven by deep domain knowledge and technology expertise, Kellton adds value to the relationship by acting as a Trusted Partner to its clients. A rapidly growing company, Kellton has made it to the Deloitte’s ‘Technology Fast50’ India list four times, Forbes Asia’s ‘Best Under a Billion’ list, and has been recognized amongst the best tech companies to work for. With operations across the US, Europe, India, and Asia-Pacific, the team of 1500 dedicated Kellton’ites is consistently on the lookout for the next gripping challenge, please visit our web site www.kellton.com
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Note: Except, for the historical information and discussion contained herein, statements included in this release may constitute forward-looking statements. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from those that be projected by these forward-looking statements. These risks and uncertainties include, but not limited to such factors as competition, growth, pricing environment, recruitment and retention, technology, wage inflation, law, and regulatory policies etc. Such risks and uncertainties are detailed in the Annual Report of the company which is available on the website www.kellton.com. Kellton Tech Solutions Ltd. undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.