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Aztec Software and Technology Services: The Aztec Warrior?

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DQI Bureau
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Fact Sheet

  • Website:



    www.aztecsoft.com
     

  • Address: #23,

    3rd A Cross, 18th Main, Koramangala Block 6, Bangalore 560 095
  • Tel.: +91

    080 5532036, 5522892
  • Fax: +91

    080 5521987
  • Area of specialization: Application

    Integration and Software Product c8o Development
  • Revenues

    (March 2001) Rs 80.66 crore
  • Offices:

    India, US
  • Listing (stock exchanges):

    Mumbai Stock Exchange, National Stock Exchange & Bangalore Stock

    Exchange
  • Face Value:

    Rs 3 per share
  • 52 Week High/Low:

    122/31
  • BSE Code:

    532385
  • NSE Code:

    AZTEC

Aztec Software and Technology Services (Aztec) was set up by

S Parthasarathy in 1996 and made its initial public offer in November 2000

offering the Rs. 3 face value shares at a premium of Rs. 77 per share.

Parthasarathy currently holds about 12% of the equity whereas e4e Holdings,

a wholly-owned subsidiary of e4e holds about 40% of the equity.  Mutual

Funds and Domestic Institutions hold 2%, employees plus the ESOP trust hold 26%,

public holds 9% and other individual and corporate bodies hold the balance 11%.

Aztec provides e-engineering solutions and works as a product

co-development partner to major US companies. Aztec has expertise in core

database technologies, data warehousing, XML and Java Technologies. Aztec

leverages its expertise in these areas in providing services in the Internet

middleware space. The company builds infrastructure that underlies the solutions

being built by its customers.

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Initially, the company provided solutions to ASPs, B2B

companies and Internet start-ups. With the slowdown in the technology space,

Aztec has started targeting the net-centric needs of enterprises by providing

application integration services. This includes integrating the networks and

application of an enterprise with those of its vendors.

The company is engaged in providing co-development services

for products being built by software product companies. Revenues from these

areas have improved over the past two quarters whereas those from e-engineering

have declined due to a sharp fall in technology investments which was triggered

by the slowdown in the US and worsened by the recent terrorist attacks. The

company is currently focusing on application integration for enterprises and

expects this segment to improve in the next fiscal.

Aztec has a development center in Bangalore and operates from

Santa Clara, US. Aztec’s closed fiscal 2001 with consolidated revenues of Rs.

80.66 crore and a consolidated net profit of Rs 18.55 crore, up by 430% and 466%

respectively. Aztec’s major clients include Asera, Embarcadero, Microsoft and

Jamcracker, with the top 5 clients generating 72% of the revenues in the first

half ended September 2001.

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FINANCIALS
(All

figures in Rs crore)
  2000 2001 2002* 2003*
Turnover 15.2 80.7 68.8 64.9
Other

Income
1.3 1.1 7.0 5.0
Operating

Profits
3.4 18.2 25.4 22.6
OPM (%) 22.1 22.5 26.7 27.0
Net Profit 3.3 18.6 17.1 10.9
Equity 3.3 12.1 12.1 12.1
EPS (Rs) 3.0 4.6 4.2 2.7
*Projected

Year ended March 31

Aztec is currently traded at Rs 58 discounting the projected

March 2002 EPS by 13 times and March 2003 EPS by 21 times. We expect limited

upside in the share price in the immediate term and expect the stock to under

perform until the announcement of the fourth quarter results. Market

Underperformer.

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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