BWI: Ajel Infotech Limited (BSE:AJEL) Topline Up By 96.62% In Q1, 2010

Press release from Business Wire India
Source: AJEL INFOTECH LTD
Monday, August 16, 2010 12:18 PM IST (06:48 AM GMT)
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Ajel Infotech Limited (BSE:AJEL) Topline Up By 96.62% In Q1, 2010
. Ajel Infotech Ltd (BSE:AJEL) reported a consolidated revenue of Rs. 207.60 Million in Q1, 2010 against Rs. 105.63 Million in Q1 2009 . . Net profit has increased to Rs. 30 Million versus Rs. 2.01 Million for the same quarter last year. . The company has started booking software product revenues and is aggressively expanding its customer base

Mumbai, Maharashtra, India, Monday, August 16, 2010 -- (Business Wire India) -- Ajel Infotech Limited (BSE: AJEL), a premier provider of information technology services, reported its consolidated financial results for the first quarter ended June 30, 2010. The completion of its software product development and the strong recovery of the Indian economy in early 2010 contributed to strong quarter-over-quarter increases in revenue and product sales cash flow, which resulted in Ajel achieving a net profit in the first quarter of 2010.

Total consolidated revenue for the first quarter of 2010 was Rs. 207.60 million, an increase of Rs. 101.97 million, or 96.62%, compared to the first quarter of 2009. The Company's first quarter consolidated 2010 results included Rs. 101.41 million in product sales revenue. Ajel reported Rs. 303 million in net profit for the quarter, compared to a Rs. 2.01 million net profit in the first quarter of 2009.

Ajel's direct expenditure including employee costs, operating costs, product component costs and selling, general and administrative expenses increased by Rs. 73.31 million, or 71%, from the first quarter of 2009. The increase was largely attributable to product component costs and higher salary expenses due to increased employee strength. Ajel's EBITDA of Rs. 31.45 million in the first quarter compared to Rs. 2.62 million in the first quarter of 2009, an increase of Rs. 28.83 million.

Ajel's Managing Director Srinivasa Arikatla commented, "Ajel's investment in software product development for the Indian market over the last 2 years and the sustained recovery in the Indian economy augmented our ability to capture a larger share of the markets we serve. As we look ahead to the remainder of 2010, we are increasing our focus on key growth areas namely Banking & Financial Services (BFSI), Healthcare, Media & Entertainment, Information Management, Mobility Solutions and Professional Services. We have a strong focus on the domestic market in India for localized software products and eGovernance intiatives at the gram panchayat levels. We believe this diversified approach will allow us to create long-term value for our shareholders."

In order to strengthen the Healthcare vertical, Ajel has recently initated steps to acquire RTEngines Software Private Limited, a Mumbai based IT consulting company with offices in Boston, Massachusetts and Dubai, UAE supporting leading global Healthcare, Telecom and BFSI companies. Ajel has already received an in principle approval from the Bombay Stock Exchange (BSE) and is in the process of filing for amalgamation with the Bombay High Court.

eFreshIndia.com is a joint eGovernance initiative by Ajel, Infrastructure Leasing & Financial Services Limited (IL&FS), Food Cert India Private Limited (FCI) and Netherlands based international B2B trade platform eFresh.com. eFreshIndia.com was launched on 11th August 2010 by the Union Food Processing Minister Shri Subodh Kant Sahai, the Minister Of State for Rural Development Shri Pradeep Jain and Secretary to the Government Of India, Ministry Of Food Processing Industries Shri Ashok Sinha (IAS) in Delhi. Ajel plans to integrate the portal with Common Service Centres at the gram panchayat level with a focus on regional language content to bring farmers, suppliers, customers, quality certification bodies and micro-finance institutions in a business model driven eco-system via the eFreshIndia.com portal.

Ajel plans to increase the headcount to 750 people by end of the financial year from current strength of 300 employees. In addition to Ajel's presence in the burgeoning Indian market, Ajel also has a fast growing customer base in the Asia-Pacific region including Singapore, Malyasia and Middle-Eastern countries like UAE and Qatar in the Healthcare, Media, and Mobility Solutions domains.



CONTACT DETAILS
Raj Kishore Senior Vice President, India Operations, AJEL INFOTECH LTD, +91 81422333322 / (40) 65356699, rajk@ajel.com

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