Rolta India March 09 Results Analysis

Rolta India posted its financial results for the third quarter ending March 09,
Rs.84.01 crores, forex losses on FCCB of $ 150 million,
Forex losses, upto June 08, have been adjusted against opening revenue reserve. As this loss will get capitalized in case it is used for fixed assets or would get amortized over a period, other expenses for the quarter rose by Rs.11.87 crores, due to this. So net addition to the bottomline for the quarter is at Rs.72.14 crores.
For quarter, total income is placed at Rs.244.68 crores, which is almost equal to its preceding two quarters.

EPS for March 09 quarter is at Rs.9.90 while it is at Rs.16.50 for nine months ending March 09. Hence on expected EPS of Rs.22 for the year, share at Rs.100 is fully priced. thanks

Mastek Ltd A Good Mid Cap IT Stock To Buy

Why Mastek Ltd A Good Mid Cap IT Stock To Buy?
Mastek Ltd. having posted its Q3 results for quarter ending March 09, has posted flat results. Total income for Q3 is placed at Rs .233 crores against Rs.251 crores of Q2 while PAT has been at Rs. 33.38 cr. for Q3 against Rs.31.33 crores of Q2.
However, Share price having taken a beating to Rs. 97 on 13th March 09 is now finding value and has moved to Rs. 146, post results. EPS of Rs. 12.41 for Q3 and Rs. 39.33 for 9 months ending March 09 makes the stock affordable and attractive at a PE multiple of less than 3 times.

Though all mid cap IT stocks have the same fate on valuations front, this stock looks attractive, which can move to 170 levels, by the time company will announce its Q4 results. thanks

SATYAM Bidding process News Satyam Share price

SATYAM STAKE SALE Bidding process will be received by 10 a.m. on 13th April and would be opened on that day itself. Since market is closed on 14th April,
Who are final bidders for Satyam?
As of date, there are 4 serious bidders in the fray and they are L&T, Tech Mahindra, Cognizant Technologies and P E Firm W L Ross.
Earlier, iGate, Hinduja Group and B K Modi controlled Spice Group opted out of the race, though, Spice Group maintains that it could re-enter the bidding, if its conditions for an open auction and transparent process are met.
There has been speculation that IBM has pulled out of the race, on fears of 13 US Class Action Suits, filed against Satyam in courts by ADR holders.

What will be the expected Satyam Share price after bidding?
Satyam is owning close to 75 lakh Sq.Feet of constructed area across the globe.
The present value of all these real estates is pegged at close to Rs. 4,000 crores.
prospects of recovering funds of Satyam, having diverted to Maytas. valuation of Rs.60- Rs.72 per share. Also, if two top acquirers are in a 10% band, open bidding can take it to upper range of Rs. 72.

Suggestion to the Satyam Stock investors.
Going with current trends bids are likely to be aggressive and share price is likely to react upward. In this situation, if one remains invested upto 15th April in the stock would stand to gain.

KPIT CUMMINS Not Able to Decide Wait Till March End

The financial performance for the quarter ended 31st Dec 2008 was not too bad, if one decides to ignore the forex losses it has not provided for. But it is precisely this concern, of burgeoning forex loss which would come at the end of the year which has kept the stock price low.
The company posted a YoY 22% rise in revenue at Rs.184.52 crore. EBITDA was up 21% at Rs.28.67 crore and net profit rose 19% at Rs.16.87 crore. QoQ, the performance was flat, with a 55 fall in topline and thanks to reduction in selling and distribution expenses, it more or less maintained the net profit at the same levels as in Q2FY09.
It added 3 new customers during the quarter, taking the total number of customers to 126. It added 106 new employees and this takes the total headcount at the end of Q3 FY09 at 4867.
The stock could see some fancy come back only after the March results. Till then, the stock would remain range bound at around same levels. thanks

Spice Communication ready to put $408 mn for 51% stake in Satyam

Spice Group ready to put $408 mn for 51% stake in Satyam. with effect Spice Communication went up 47% higher, as BK Modi said that his company has put formal bid to board for Satyam acquisition. He might be keen to acquire 51% stake in Satyam.
Spice Innovation, Modi’s closely held New Delhi-based holding company, made a preliminary cash offer for preference shares in Hyderabad-based Satyam, Modi said in a telephone interview from New Delhi today.
report
Spice Makes $408 Million Offer for Control of Satyam (Update1)

MINDTREE Mid Cap IT Company Stock Results

A mid cap IT company, it was in news after the Satyam scam broke out and there was wide spread speculation that it would be taking over Satyam. The company immediately issued a press release and culled the rumours. But the results it presented for the third quarter ended 31st Dec 2008 were much below expectations. It incurred huge forex losses of Rs.65.79 crore and this obviously pulled down the bottomline right to where it belongs

The company has posted a not-so-good set of results for the third quarter ended 31st Dec 2008. Its software revenues grew by 16.6% on a QoQ and 93.4% on a YoY at Rs.363.80 crore. EBITDA for the quarter was up 28% on a QoQ and showed a YoY growth of 251.6%. But then the forex loss came in and spoilt the party. Net profit was at Rs 8.72 crore, compared with Rs 35.13 crore in the previous quarter, a massive fall of 75.2%.

During the quarter, 22 new customers were added taking the active customer base to 260. It added 299 people on a gross basis during Q3, taking our total people strength to 5,826 as of December 31, 2008.

The guidance is down as it expects slower growth in the year ahead due to the economic crisis affecting its clients. thanks

Make Profit Out Of Satyam Shares Loss Trick Here

Want to make profit out Of Satyam Shares Investment Loss. Everybody is aware of recent Satyam fiasco. I got badly stung and I would like to share my experience so that others can avoid making similar mistakes.

The day Ramalingam Raju resigned, I saw the share price of Satyam tumble from Rs 180 to Rs 90 in a matter of minutes. Now that by itself cannot be a valid reason for the share price to tumble. I became greedy and bought 2000 shares of Satyam @ Rs 90.

Later on in the same day, I learn that he confessed to committing a series of frauds !!! Now that is something serious. If the profits had been manipulated to the extent of Rs 7,000 Crores over several years, then the real value of the Satyam share should be Rs 10.

Justifiably, the share price of Satyam fell to Rs 10 (or actually to Rs 6.50 also) the very next day and is fluctuating between Rs 20 to Rs 38.

I lost a great deal of money in the process. How does one come out of the messy situation?

The only solution is to sell some shares of Satyam at every rise and buy them back at a lower price. Even if I sell 500 shares every day and buy back at a profit of Rs 2 after deducting all expenses, I make a profit of Rs 1,000 per day. I may not be lucky enough to do it every day so it may take a year to come out of the mess.

TCS Q3 Results 2008

tcs, tcs q3 results 2008, tcs q3 results 2009, tcs q3, infosys q3 results tcs q3 results; Tata Consultancy Services Ltd (TCS) has informed that a meeting of the Board of Directors of the Company will be held on January 16, 2008, to take on record the auditedresults of the Company for the quarter ended December 31, 2007 (Q3) and to consider declaration of a Third Interim Dividend to the shareholders.

Further the Company has informed that, January 24, 2008 has been fixed as the Record Date for the purpose of payment of Third Interim Dividend, if declared. Tata Consultancy Services Q3 profit up 1.6% at Rs 1,352 crore.
INDIA'S biggest software services exporter TCS reported on Thursday that its third-quarter net profit rose by a lower-than-expected 1.57 per cent from a year earlier, hit by the global economic slowdown.

RS SOFTWARE mid cap IT stock

Right now, when the biggest issue for investors is corporate governance and when they are avoiding companies which have even the slightest hint of any kind of manipulations, there comes the third quarter performance of RS Software.

A tiny software company, it has anyway been between down quite a bit but it was surprising to see that it ended yesterday with a gain of over 3% at Rs.14. Surely, it managed to do this based on the performance of Q3FY09, which YoY has been good but down on a sequential basis. It posted a PAT of Rs.1.60 crore for the quarter ended 31/12/08 and this far exceeds PAT of FY 08, which was at Rs.1.17 crore. But compared to Q2FY09, this was down 6.74%.


There seems to be no correlation between the profitability over the quarters, as also in regard to EPS stated by the company, for various periods. For FY 08, on equity base of Rs.744 lakhs, with PAT of R.117 lakhs, EPS is stated at 16 paise, while for September 08 quarter, on PAT of Rs.178 lakhs, EPS on equity of Rs.744 lakhs is stated at Rs.2.18. And now for the Dec quarter the EPS is at Rs.2.02.

The sole aim of the promoters of the company is to have market operations and to trap the investors at the higher levels. Share now ruling at Rs.14 had its 52 week high of Rs.41 and Rs.10.90 and when established mid cap I.T. companies are available at a PE multiple of 3 to 4 times, who would be interested in these manipulative stocks? thanks

IT SECTOR – GOOD, BAD OR UGLY

The Satyam scam is not even a week old. The skeletons continue to threaten falling from the cupboard of Satyam and there is no doubt that the confidence of the investor has now been literally beaten to a pulp. With the eyes of the world on India in the aftermath of this scam breaking out, what is commendable is the swift way in which the Govt has managed to swoop down and take control. Probably we have seen such speed from the Govt for the first time ever.
The new board with eminent personalities like Deepak Parekh of HDFC, Kiran Karnik and former SEBI member C Achutan has managed to repose some faith back. Wipro. Another biggie from the Big Four IT companies of India, Wipro disclosed that the World Bank had determined in June 2007 the company would be ineligible for the bank's direct contracts up to 2011 citing a conflict of interest policy. Wipro said its revenues from World Bank were insignificant and the decision would not affect its business and results.
ow does the IT sector for now?
One cannot beat the chest and say for sure, crying from rooftops that this is the sector to back! Satyam revival would depend on how the Govt goes ahead and one has to see if there is any company willing to takeover. After Wipro, the market, right now, does not know how many more companies would now come back with such damaging disclosures.
To a large extent, a lot would depend for the sector on the Q3FY09 results of Infosys, expected tomorrow. Though analysts are of the opinion that it might miss its guidance, even if the company manages to show a growth rate over 20% in the topline and bottomline, the sentiments would improve.
So if IT is your flavour, best to wait and see how Satyam goes ahead from here and how Infy manages to post its Q3 numbers. Mid cap and small cap IT stocks would mostly have no reckoning on the bourses.

Satyam Stock Price Crashed to Rs 60 With Raju Resigns

Satyam Latest News Ramalinga Raju Resigns Satyam Shares Hit Low of 58. Sad part on Indian co-operate governance. Raju of Satyam resigns, shocking India Inc with the biggest fraud in recent times.
With yesterday news about merger with Tech Mahindra Satyam shares went up by 7%.
Satyam Computer Services founder chairman B. Ramalinga Raju resigned from the IT major's board after admitting a fraud to the tune of Rs 5,040 crore in the balance sheet of the company. reports sify
In a notification to the stock exchanges, the Hyderabad-based IT firm said Ramalinga Raju and Managing Director Rama Raju had resigned early Wednesday and that the Securities and Exchanges Board of India (SEBI) had been informed.
"This is an event of horrifying magnitude and has happened for the first time. So I am sure there are many lessons to be learned," C.B. Bhave, chairman of Securities and Exchange Board of India, told television channel CNBC TV 18. satyam, satyam computers, satyam auditors, livemint, satyam chairman resigns
Read on Ramalinga Raju's letter to Board

Satyam stock price Update:
Chairman B. Ramalinga Raju’s admission that Satyam Computer Services Ltd’s Balance Sheet was completely fabricated got the stock
crashing down by 66.5 per cent to Rs 60 from Wednesday’s high of Rs 188.70.

The share hit a low of Rs 58, as details of the extent of fraud perpetrated by the promoters shook the stock market and cast a grim cloud over the corporate practices of companies.
Satyam Was in news with layoff, and today it seems like end of Satyam news stories. Another black day in Indian share market.
This make trouble for IT stocks and big question on India Inc.

TANLA SOLUTIONS Good IT Stock To bet On

Tanla Solutions, calling itself a telecom infrastructure solutions providing company, Tanla has done pretty well for itself for the second quarter ended 30th September 2008. The acquisition of a telecom services company in the UK, a software development company in India, and the recent purchase of Openbit, a Finnish mobile payments company has helped fuel this growth.

For Q2FY09, the company recorded consolidated total revenue of Rs.212.41 crore against Rs.168.86 crore in the last sequential quarter, a rise of 90.63%. Overseas revenues were close to 96%, and India was 3.4% whereas other income was 0.6%. Of the total income, products contributed 10.23%, aggregation 70%, professional services 9.23%, while mobile payments contributed around 10.56%. The growth drivers were operations in international markets like UK and other European countries, and Tanla saw sequential network aggregation revenue going up from Rs.125.23 crore to Rs.147.77 crore, an increase of 18%. EBITDA margins stood at 45.66% for the quarter on a consolidated basis. Net profits have jumped 92.83% to Rs. 70.54 crore as compared with the same period last year.

The entire focus of the company currently is on emerging technologies globally and consequent launch in India. It is the first Indian company to offer 3G products and the applications to one of the mobile operators, MTNL, and also for the biggest operator in Sri Lanka called Dialog. Once 3G starts in India, Tanla’s services would include video alert service, video SMS service, video dial service, video blogs and also video conferencing services.
Along with domestic expansions, the company is also keeping its feet firmly on the global markets and has entered new markets like Spain, South Africa, Finland, Sri Lanka, and Germany.

Telecom is one sector which to a large extent has been affected by the global financial crisis and the slowdown in the Indian economy. Tanla is well poised to take advantage and hence makes a good investment even in these troubled times.
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MindTree Good Mid level IT Stock To Buy

It stocks are not exactly the flavour of the season right now. The financial global meltdown and the collapse of many a financial institutions/banks has raised a lot of questions about the viability of the software companies in India. The financial crisis in the USA is expected to affect the margins of majority of the IT companies in India as almost 60% of all big time companies business comes from USA. And with USA itself slowing down considerably and most of the European countries also getting into recession, it is not a surprise that the going would get tough.
MindTree, global IT and R&D Services company, for the second quarter ended 30th September 2008 has been ok. These Q2 results represented the consolidated and fully integrated results of Aztecsoft. QoQ, software revenues of Mindtree grew 9.1% while 32.5% on a YoY. EBITDA, on a QoQ grew 52.6% and YoY grew 142%. This rise in EBITDA was mainly on account of the depreciation of the rupee. PAT increased by 34.8% YoY, while QoQ, it has turned around from a net loss of Rs.12.96 crore it posted in Q1FY09.

During Q2FY09, it added 22 new customers were added, bringing the current active customer base to 206. It added 321 people on a gross basis during Q2, taking our total people strength to 5,746 as of September 30, 2008. Attrition on a trailing 12-month period has reduced to 15% as compared to 16.3% in Q1 2008-09.

The stock hit a new low on 20th Nov at Rs.221 and is now at Rs.233 levels. This reflects the general low perception for the IT stocks. Mindtree is a good mid level IT company but the slowdown and the expected reduction in prices in new deals and repeat orders is expected to put pressure on the margins.
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TANLA SOLUTIONS Waits Till Citigroup Settles down

Despite the circumstances, Tanla Solutions has done exceedingly well for itself for the second quarter ended 30th September 2008. On a YoY basis, the consolidated net revenue of the company has grown by 97% at Rs.211.15 crore and despite the operating expenses more than doubling, the company posted a net profit of Rs.70.54 crore, a rise of 92%. Even on a QoQ, the performance has been good. Net revenue rose 26% and PAT showed a growth of 25%.

And yet, the company yesterday touched a new at Rs.59, though it recovered from that level and settled above Rs.60 levels. But why did it touch a new low in the first place? Well, the beleaguered Citigroup has a 8.75% stake in the company and given the trouble that it is in, the market perception is that Citi would now be pressing sales in all its holdings in Indian stocks. Though a rescue package has been announced, there is still concern that Citi would continue selling to shore up its liquidity to tide over the current crisis.

Tanla remains a very sound company. A zero debt company, being mainly in the telecom sector, the impact of the global financial crisis is muted. The mobile market in both UK and India remain resilient to recent economic upheavals. Emerging markets like India too have shown healthy trends in mobile services. In September alone, there was a record 10 million subscriber addition with the total mobile subscriber figure crossing the 300 million milestone.

In Q2, Tanla's Mobile Payments performance highlighted the increasing global shipments of smart and feature phones. License Manager installations from Tanla OY were close to 6 million handsets with September alone doing close to 3 million. All smart phones being sold by manufacturers like Nokia carry Tanla's mobile application rights management product. This service is now available in India through Tanla's tie-up with Airtel and would shortly be rolled out with other operators.

The stock price could continue to see some more volatility, till things do not settle down on the Citigroup front.
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satyam q2 results Net up by 42%

Satyam Q2 net up 42% at Rs 581cr reports BS
Satyam Computer Services, the country's fourth largest software exporter, reported a net profit of Rs 580.85 crore for the quarter ended September 30, 2008, when compared with Rs 409.09 crore in the corresponding quarter last year, reflecting an increase of 41.98 per cent.
"The revenue growth was on the back of a four per cent volume growth and rupee depreciation against the US $. These drivers, coupled with efficient cost managment, resulted in an EPS of Rs 8.63 for the quarter, against a guidance of Rs 7.78. We believe that these factors will also enhance our annual margin performance," Satyam founder and chairman, B Ramalinga Raju, said in a statement issued to the BSE on Friday.

"The near term environment remains challenging because of the global slowdown and continued instability, notably in the US banking and financial services sector. Consolidation among financial services companies is also contributing to uncertainty, although it is also creating transformational opportunities," he added.

Indian IT STOCKS Analysis FROM “MOST FAVOURED”

IT stocks have been hammered down mercilessly by the punters over the past few days. Stocks which were touted as blue chips are today being sold off by investors. Well, if legendary institutions like Lehman and Morgan can collapse, can we say even talk about blue chips today?


So why have the markets turned sellers on the IT counter? Falling rupee, US crisis, liquidity issues, hike in interest rates, inflation; anything and everything seems to be responsible. When the markets crashed three days ago, IT stocks, along with realty led the fall.


In the meltdown on 29th September, TCS was amongst the biggest losers of the day and it touched a new low at Rs. 612.10. Satyam also touched a new 52-week low at Rs.289. Infact 150 stocks hit a new low that day and prominent IT stocks amongst them were Patni Computers, 3iInfotech, eClerx, Hexaware and Mindtree.


The quake on Wall Street has rattled the Indian IT companies as they earn roughly half their revenue from US. With a further slowdown seemingly inevitable, there is no doubt that business is expected to take a hit. No doubt, when the rupee appreciated last fiscal, to reduce their dependence on the US dollar and to spread their risks, IT companies had started exploring markets in Europe, Middle East and Asia. So companies which have managed to spread their tentacles and reduced their dependence on USA would be impacted slightly lower. Yet, the current crisis is not about the dollar alone, it has affected BFSI business all over the world, so irrespective of the region, business is expected to face a slowdown.


What came as a complete shocker were the front liners hitting a new low. So what exactly was the cause? There is widespread fear that the meltdown in the US financial system is expected to hit the business of IT firms badly as quite a sizeable chunk of their income comes from US banking, financial and insurance sector (BFSI). Infact around 40% of TCS revenue comes from BFSI. TCS is stated to have the highest exposure to the BFSI sector and with this crisis and spate of bankruptcies, naturally, all were in a tearing hurry to offload TCS as quickly as possible. Of the top five Indian IT companies, TCS services Morgan Stanley while Goldman Sachs is an important client for Infosys.


Ironically, Satyam is stated to have the lowest exposure to US, yet it touched a new low. Across-the –board-selling and there was so much panic that the trader just did not want to wait on the IT counters, irrespective of the companies exposure to US.


What about Infosys? During the first quarter ended 30th June 2008, 35% of the company’s revenue came from BFSI which was at around 36% for FY08. Infosys services 6 of the 7 large US banks, 6 of the top 10 securities firms, 4 of the top 5 European banks, 6 of the 8 top mortgage orginators. How many of them exist today? US accounts for 60% of the company’s revenues; that somehow no longer seems reassuring, it has infact become a cause for worry.


To make matters worse, National Association of Software and Service Companies (Nasscom), in a recent report has stated that growth of Indian software and services could be slower than expected in 2008/09 and it is expected to revise its growth projections in December. It had forecast revenue growth between 21% - 24% to about $50 billion in FY09. The third and fourth quarters are expected to be exceptionally difficult.


There is no doubt that given the current scenario, business is bound to take a hit. Re-negotiations and new negotiations would be put off for some time. This fiscal, FY09, despite the dollar appreciation, would be tough on the Indian IT companies. The short to medium term outlook for IT companies does look bleak. The market is always right; we just have to learn to look at the indicators to know the reasons. Infosys is to declare its results on 10th October. That will give us the cue for the fiscal.
By Ruma Dubey

KRONE COMMUNICATIONS stay invested Good Stock

KRONE Communications is a joint venture of Krone GmbH and KEONICS, providing connectivity solutions. Due to the changing technology, the company is still in the process of shifting from wireline to wireless segment. The company ends its fiscal on 30^th October, so its results for the period ended 31^st July 2008, represents the third quarter performance.

The performance for current Q3 on a YoY has not been very good. Though the company showed a smart 35% rise in net sales, the 43% rise in operating expenses, which ate away more than 90% of its sales, affected the bottomlines. EBITDA was down 12% and OPM slipped from 18.28% to 11.92%. PBT was down 11% and PAT was down 12%. NPM slipped from 10.37% to 6.73%.

The main culprit was the soaring price of its raw materials – mainly copper and plastic. With the prices of the metal cooling down during the last few days, it should help the company recoup and bounce back.

A debt free company, its equity stands at just Rs.4.60 crore of which 62% is held by its parent company - ADC GmbH Germany. In 2005, the ADC group came out with statuary open offer to acquire 23% stake at Rs 92, but the offer did not go through as shareholders did not bite the bait as prevailing price at that time was Rs 130 on BSE. Good they did not as even today, it is quoted much above the offer price! Or maybe the parent company would now make another offer at a much higher price?

Cyclically, its fourth quarter is the best and hopefully, it will help the company turn the tide back in its favour. The slowdown in the IT sector had a direct bearing on its Q3 performance but the company hopes to overcome this by concentrating more on the telecom sector. It also exploring opportunities with OEMs for new products, with higher value adds. Currently quoted at Rs.115, stay invested.

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Tanla Solutions Best to Hold IT Stock

Tanla Solutions Ltd, a leading telecommunications software and services provider posted very good results for the first quarter ended 30^th June 2008. There has been accelerated growth in revenues and profitability with consolidated total income of Rs. 166.86 crore, up by a whopping 86% on a YoY. Net profit increased by 69.60% to Rs. 56.41 crore. On a sequential basis, total revenues increased by 14.71%. EBITDA margins stood at 48.20% for the quarter on a consolidated basis.

During the quarter, the company acquired 85% in Finland based Openbit for US$15.81 million at a total valuation of US$18.60 million. Integration with Tanla’s UK aggregation platform has been completed Accounts & Finance, HR and R&D to be completed during Q2. It added 145 employees during the quarter, taking the global workforce to 526.

It added 18 new content providers’ clients in UK and Ireland and 20 in India. It has signed up voice portals with BSNL for setting up voice portals in all 23 circles in India, covering both GSM & PSTN networks. These services are to be live in Q2 across the country. It has also signed connectivity agreements with all operators in Spain, South Africa, Dubai and Singapore, wherein the revenues are to commence from Q2.

The stock is currently quoted at Rs.216. The company’s fortunes are directly linked to that of the telecom sector and with the sector all set to takeoff further, though right now things look a bit dull; things could only get better for Tanla during the fiscal. Best to hold on to this stock. One can also consider buying at all declines.
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POLARIS SOFTWARE stay invested

To maintain 10% growth rate For the quarter ended 30th June 2008, consolidated revenue for the current quarter was at Rs.316.98 crore as against Rs 286.16 crore in Q4FY08, showing an increase of 10.77% on Q-on-Q basis, and 23% on Y-on-Y basis. EBITDA stood at Rs 40.1crore in the current quarter, compared to Rs.36.21 crore in the immediately preceding quarter.

PAT for Q1 was at Rs 27.01 crore as against Rs 21.45 crore for the immediate preceding quarter showing an increase of 26 % on a Q-on-Q basis and 87% on a Y-on-Y basis.

The revenues contribution from Americas grew to 37% of total revenues, up by 300 basis points. Its revenues from Optimus, a wholly owned BPO subsidiary of Polaris, grew by 80% on a YoY basis. During the quarter, the company expanded its customer base, by winning 15 new customers, including 5 that were Intellect-led. Its headcount at the end of this period was at 10,397, consisting of Polaris headcount at 7606, Optimus headcount at 2698 and Polaris Retail Infotech Ltd. (PRIL) headcount at 93. Attrition for Q1 was placed at 16.67%.

Dollar appreciated by 4.73% on a Q-on-Q basis in Q1 and Polaris average rate in Q1 was at Rs.41.71 as against Rs 39.83 in the preceding quarter.

The company hopes to maintain a growth rate of 10% over the remaining three quarters in the current fiscal. It is not that things have become hunky dory, there slowdown persists and this is bound to affect business. But the company hopes to counteract this problem by generating maximum offshore revenues.

The company plans to get into realty business and it has investments in Gurgaon and Chennai and it is these existing assets, which the company is looking at monetizing.

Its total cumulative hedging right now stands at about $90 million and this is primarily for catering to the three quarters forex inflows and at the average rate of Rs.40.08. It has covered only about 50% of this inflow and the balance is on paper. The company is not into any exotic deals, neither into speculative deals nor into the derivative segments in the billing rates. So to that extent, the company seems well protected.

At the current rate of Rs.99, best to stay invested.
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IT companies financial performances

IT companies might bend themselves backwards to prove that there is no slowdown and shout themselves hoarse that things are hunky dory, but yet the unease remains. The financial performances of the frontline IT companies have been good mainly on the back of the appreciating rupee but otherwise if one sifts through the data, it is quite apparent that things are tough. And it is these small signs which one should look out for.

Infosys are stated that it is scaling down its hiring this fiscal, a cut of 29%. It had recruited 35,000 people in 2007-08 and in the current fiscal it will hire only around 25,000 people, of which 18,000 will come through campus recruitments, which means some more savings on costs. Campus candidates no longer come cheap but yet, compared to the open market, they are definitely great values for money. The company has made it very clear that the cut in hiring has got nothing to do with the slowdown, it was more due to pressure on the infrastructure facilities of the company and also due to some changes in the business plans.

Well, when business grows, then pressures on infrastructure facilities would have meant more internal growth to accommodate more people, as the company cannot sacrifice growth. And changes in business plans? Plans which require lesser people? Now that somehow sounds more like a slowdown, irrespective of what the company says, doesn’t it?
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