Tag Archives: engineering

Bertrand Does Better than Competitors in Q3

/ September 6, 2020

Bertrandt reported its Q3 FY20 results (calendar Q2 2020). Revenues were EUR 205m, down by a massive-20.9% yoy, and the EBIT margin was -0.9% (Q3 FY19: +2.7%). Yet, Bertrandt’s results were better than those of EDAG ( yoy revenues down by 32.6%) and Akka (-31.4% yoy at CC/CS).

Covid-19 Will Mostly Impact the ER&D Onshore Industry

/ March 19, 2020

Since we published our last note on the impact of Covid-19 on ER&D spending, the situation has changed with Covid-19, having now spread to Europe and soon the US. Already, The European Central Bank is predicting a GDP decline of 5% in 2020, based on the impact of three months of confinement.

Akka Launches a Mandatory Offer for Data Respons

/ March 10, 2020

Akka has launched a mandatory offer for Data Respons (DR) that will provide shareholders the opportunity to sell their DR shares. The company has been active on the stock markets since the end of its tender offer on February 13, raising its stake from 72.9% to 78.1%. Akka is hoping to reach 95% of shares and launch a squeeze-out offer later one.

Bertrandt: Soft Quarter in Q1 FY20

/ February 23, 2020

Bertrandt had a soft quarter in Q1 FY20 (corresponding to calendar Q4 2019): revenues were flat (+0.4%) to EUR 263m, impacted by project delays, and reduced utilization rates in its Digital Engineering (DE) unit (-3.0%). DE, Bertrandt’s largest unit (55% of revenues), suffered from Germany OEMs shifting their R&D spending to digital.

Alten Slows Down in Q4. Points to Market Adjustment

/ February 3, 2020

Alten’s revenues in Q4 slowed down to a growth of +7.3% yoy (at CC/CS ), following double-digit CC/CS growth during Q1-Q3 2019. The company suffered from a demanding comparison basis (+13.7% in Q4 2018), and one lesser working day in several countries (a 0.15% impact on the group’s revenues).

Wipro Still Reinventing its Industrial and Engineering Business in Q3 FY20

/ January 19, 2020

Wipro announced a mild growth in the revenues of its Industrial and Engineering (I&E) business unit in Q3 FY20: I&E revenues were up by 3.1% only (to USD 151m). Revenues included a small contribution from the recent ITI acquisition and were impacted by the market conditions in the semiconductor industry and softness in 5G adoption.

UPDATED: Bertrandt Ends its FY19 with a Low Point

/ December 12, 2019

Bertrandt had a mixed Q4 FY19 performance with revenues up 2.6% and an EBIT margin of 5.2% (down 330 bps). For the full year, revenues reached EUR 1,060m, up 3,8%, within the guidance range the company had provided (EUR 1,041-1,071m).

KPIT Had A Solid Q2. Strategic Questions Remain

/ November 29, 2019

Automotive engineering pure-play KPIT continued on its growth momentum in Q2 FY20 (+15.2% yoy), enjoying a satisfactory EBITDA margin of 13.4%. KPIT’s financial performance was, however, a notch below that of Q1 both in terms of revenue growth (Q1: +19.3%) and margin (14.6%).

Akka Raises EUR 175m in Convertible Bonds. But Why?

/ November 28, 2019

We don’t usually comment on the financial performance of ER&D service vendors beyond their financials. But this time, this is a little bit different: Akka Technologies raised yesterday EUR 175m in convertible bonds, a significant amount for Akka, which has a market cap of EUR ~EUR 1.2bn.

Capgemini’s Acquisition of Altran Delayed by Elliott by Up to Five Months

/ November 28, 2019

Capgemini’s acquisition of Altran will be delayed by up to six months. Edge Fund Elliott has, through intermediaries, brought, the case to court. The initial ruling on December 4 will decide if the acquisition will be suspended. A final ruling will occur by end of the March at the latest.

Thoughts About HCL Tech’s Performance in Q2 FY20

/ November 9, 2019

HCL Tech’s ERS accelerated its yoy growth in Q2 FY20 to +15.0% at CC, from +13.3%. Its EBIT margin also increased from 16.0% in Q1 to 21.4% in Q2. The financial improvement results from mostly a catch-up effect: ERS recognized revenues in Q2 that it could not in Q1.

ÅF Pöyry Suffers from The Economic Conditions in Q3 2019

/ October 30, 2019

ÅF Pöyry’s revenue growth (yoy, at CC/CS) continued to decelerate this quarter, declining from +8% in Q1 to +1% in Q3 2019, despite the positive impact of an additional working day (+90 bps on revenue growth during the quarter). The company suffered from the same issues as in Q2: a slowdown in the automotive sector from its largest automotive client, (impacting Industrial & Digital Solutions Division) and delayed decision-making in the Infrastructure Division in Denmark.

Accenture Acquires Two Firms in October YTD

/ October 20, 2019

It has been almost three years since Accenture launched Industry X.0, and we estimate that Accenture acquired nine competitors in these 36 months. The pace is accelerating with Accenture having five competitors in 2019, YTD.

Wipro Expecting An Acceleration in E&IS from Q3 Onward

/ October 19, 2019

During its Q2 FY20 earnings call, Wipro provided some light about the performance of its Industrial & Engineering Services (E&IS) unit.
It is not so long ago that Wipro was corporate India’s strongest name for ER&D services, mostly servicing clients in the network equipment provider industry and also semiconductor manufacturers.