ROLTA INDIA Buy Now

Shares of Housing Development and Infrastructure (HDIL) are trading at Rs 401.20, down Rs 16.75, or 4.01% at the Bombay Stock Exchange (BSE) on Tuesday at 1:25 p.m.

Rolta is a market leader in providing specialized IT-based solutions to the geospatial and engineering sectors. For the year ended 30^th June 2008, the company has posted encouraging results. The rise in the topline was supported by a rise in the bottomlines and this was despite a surge in the operating expenses. The most pertinent point to be noted is that the company is debt free, its interest outgo was nil for the year while in June 2007, it was at a meager Rs.74 crore.

For the year ended 30/06/08, the net revenue of the company rose 51% and despite a 68% rise in operating expenses, the PAT was up 34% at Rs.230.59 crore. The company had declared a 1:1 bonus and this is now reflected in the increased equity.

For the year, the company had a MTM loss of Rs.30.18 crore on account of FCCBs. This FCCB was at a fixed price at Rs 40.75, and this is the rate at which they will be converted. But on 30^th June 2008, when the company ended its year, the price was about Rs 42.90 and that is what has been provided for. The company states that as soon as these FCCBs are converted, this will be rewritten and losses will be reversed, it’s a book entry and there has been no cash outflow.

For the current fiscal, the company hopes to maintain a topline and bottomline growth of 40%. It is also looking at making some acquisitions, around 2-3 companies mainly in USA, which are into a varied segment of business, mainly those in the high-end business.

Rolta, through its JV the Shaw Group, USA provides comprehensive Engineering, Procurement and Construction Management (EPCM) services to meet turnkey project requirements of power, oil, gas and petrochemical sectors. Rolta's JV with Thales, France, develops and provides state-of-the-art C4ISTAR information systems, Military Communications, Digital Soldier & Vehicle System solutions, covering the entire “sensor to shooter” chain, under transfer of technology from Thales.

Rolta is one company which is expected to benefit from the nuclear deal, mainly due to its JV with the Shaw group, which has a 70-80% of the world market for nuclear power plants design and for installation and commissioning. But the revenue from this is expected to come in only after the next 18-24 months.

The two JVs – Shaw Group and Thales are expected to reap a bounty for the company in terms of the benefits of the nuclear deal and key defence deals respectively. And this will take Rolta to a newer level by 2010. So stay invested and those wanting to dip their oars in this water, this is a good time to buy.
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