Indra´s net profit increases by 4% during the first half

Indra reported a sound performance in the first six months of the year. The strong growth in its international markets, particularly Latin America and Asia Pacific, offset the difficult conditions of domestic business.

Net profit stood at €105 M for the first half of 2011, an increase of 4% on the same period the previous year.

Revenues were €1,354 M, up by 2% with respect to the first six months of 2010. The international business continued to perform well, expanding by 5%, with double-digit growth in Latin America (16%) and Asia Pacific and Africa (17%). The domestic market improved slightly and has remained practically flat. Budget restrictions in the more institutional markets were offset by increased  corporate client activity, with growth in the Telecom & Media and Financial Services segments particularly noteworthy. In markets  more closely linked to public expenditure, Security & Defence revenues fell by 23%, whereas Public Administrations and Healthcare saw growth of  3%.

Total order intake grew 5%.The expansion of international business stepped up the pace with an increase of 21%, while the domestic market fell by 5% in accordance with expectations. Contracts in the Services segment increased by 12%, whereas the Solutions segment showed a flat trajectory compared to the drop of 9% over the first quarter of 2011. The book-to-bill ratio was 1.29x, as against 1.25x during the same period the previous year.

The order book amounted to €3,273 M, representing 12% growth and equivalent to 1.27x revenues over the last twelve months.

The EBIT margin for the period was 10.5%, 0.4 percentage point higher than the same period the previous year.

2011 guidance

Indra reiterates its guidance announced for the year as a whole, given the company’s strong performance during the first half of 2011 and the outlook for the rest of the year (revenue coverage of 91%, in line with last year’s figure for the same period). Figures are as follows:

• Revenue growth of more than 2%, with significantly higher growth on international markets, offset by a slightly negative performance by the Spanish market.
• Order intake slightly ahead of last year’s and significantly higher than revenue, which will further bolster the order backlog.
• An EBIT margin of at least 10.5% with no courses of action entailing additional extraordinary costs in 2011.

 

KEY FIGURES

The following table lists the key figures for the period:

 

INDRA	1H11 (€M)	1H10 (€M)	Change (%)
Order intake	1,739.8	1,663,2	5
Revenues	1,353.6	1,328.6	2
Order book	3,272.5	2,919.0	12
EBIT	141.7	133.9	6
EBIT margin	10.5%	10.1%	0.4 pp
Attributable profit	105.3	101.1	4
Net debt	343.8	221.8	55