Geometric Software Solutions: An Arm’s Length Away

  • Website:
  • Address: Plant 14, Pirojshanagar,
    Vikhroli (East), Mumbai-400079.
  • Tel: +91-022-5960800
  • Fax: +91-022- 5960891
  • Area of specialization: Software
    services, component technology and OEM application in the area of
    CAD/CAM/CAE/PDM and Collaborative Engineering
  • Revenues (March 2001) Rs 44.87 crore
  • Total Employees 430
  • Offices in India: (Mumbai & Pune),
    US, Japan & Germany
  • Listing (stock exchanges): Bombay
    Stock Exchange National Stock Exchange
  • Current Market Price Rs 92
  • 52 Week High/Low Rs 198/ Rs 52
  • BSE Code 32312

Geometric Software Solutions was part of the Electronic
Business Equipment division of Godrej & Boyce Manufacturing Company. The
division’s major activities were manufacturing and marketing electronic
equipment. It later began to manufacture electronic typewriters, dot-matrix
printers, workstations and CAD/CAM software. The CAD/CAM activities were spun
off as a separate company in 1994 to focus on the company’s strong
capabilities in these areas. Geometric came out with its initial public offer of
13,10,000 equity shares at a premium of Rs 290 per share in January 2000.

Geometric Software provides comprehensive solutions in the
areas of CAD/CAM/CAE/PDM and collaborative engineering. The company provides
project services, component technology and OEM applications to global mechanical
design and manufacturing markets. These services are provided through its three
strategic business units, namely geometry, information management and
collaborative engineering.

Geometry is the traditional segment of Geometric, which
builds licenses component technologies; provides project services and OEM
products in the areas of CAD/CAM/CAE, apart from offering solutions combining
technologies with services for OEMs and end-users. Currently, revenues from
high-end services form a major part of the total revenues of Geometry.
Technologies are the tool kits that can be used by system integrators to build
end user product for CCCP. Its key technology is the Feature Recognition
Technology, which automatically recognizes features in solid geometry. The
company’s applications include FeatureWorks, which has been developed using
the Feature Recognition technology. CAMWorks is another application using the
Feature Recognition technology, which gives implementation instructions to the
software. The company’s other technologies include Nestlib and FX and
CollabView. Revenues from Geometry stood at approximately Rs. 20.87 crore in the
first half ended September 2001 with projects forming 75% of the revenues. The
information management and the collaborative engineering units were formed in
October last year and have grown rapidly.

figures in Rs crore)
2000 2001 2002* 2003*
Sales 31.90 44.87 60.63 76.04
Other Income 1.46 2.05 2.53 2.70
Operating Profits 8.96 9.72 12.76 16.34
OPM (%) 28.08 21.66 21.04 21.49
Net Profit 8.06 8.13 10.45 12.89
Equity 5.20 5.20 5.20 5.20
EPS (Rs.) 15.50 15.63 20.10 24.79
Face Value = Rs. 5

Year ended March 31

#After one
time write off of Rs. 5.20 crore of investment in

Geometric added 26 clients in the first half of the current
fiscal and it achieves about 76% of the total revenues from the top 10 clients.

Sushanto Mitra
is the founder of Technology Capital Partners

The views reflected here are of the author and not of this
publication. No liability is accepted for losses based on the information
presented here

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