Wipro
Market Capitalization: Rs 32,480 crore
Bangalore based Wipro leads the pack with a market capitalization of Rs 32,480
crore. Wipro’s performance over the past four quarters was decent despite the
global shake-up in the telecom business. Services in the telecom vertical forms
a substantial part of its software revenues. The # 1 market capitalized IT
company and also the largest in terms of revenues, sees a bright future in the
IT enabled services. The acquisition of Call Center/BPO Company–Spectramind
e-Services during the year is a step towards becoming a comprehensive IT
solutions provider.
Although Wipro is talked about as being overpriced in comparison to Infosys,
which has better growth-potential, it has managed to maintain the top position
in market capitalization. Wipro, along with TCS, won a $ 70 million per year
outsourcing order from Lehman Brothers, which is the second major contract won
by the company after the $ 70 million system integration project from the UK
based Lattice group. With the acquisition of Spectramind and US based AMS, Wipro
is unlikely to slip from its top seat.
Infosys Technologies
Market Capitalization: Rs 26,067 crore
The stellar second quarter performance by Infosys
Technologies has almost signaled signs of a recovery in the IT sector. Infosys
Technologies has managed to meet its guidance every quarter since the last year
but the performance for the second quarter ended 2002 was truly outstanding. The
resignation of US global sales and marketing officer Phaneesh Murthy after an
ex-employee filed a case against him and the company, alleging sexual harassment
had little impact on the company’s performance and its stock price remained
largely unaffected.
Infosys was trading at Rs 3179 last year and touched a low of
Rs 2156 during the month of October 2001. It touched a high of Rs 4850 when its
third quarter results proved better than expectations. It declined to touch a
low of Rs 2935 in August 2002 but has since shown a gradual recovery. Its first
quarter June 2002 results reflected signs of stability in its performance. In
the first quarter, Infosys’ revenues jumped 12% q-o-q to Rs 764.62 crore
whereas the net profit was up 3% q-o-q to Rs 216.85 crore. However, the second
quarter results beat the street expectations. Infosys reported revenues of Rs
879.58 crore, up 35% y-o-y and 15% q-o-q. Its net profit of Rs 225.77 crore was
up 12% y-o-y and 4% q-o-q. Infosys added 18 new clients and 1,806 employees
during the second quarter. Infosys expects the third quarter revenues at around
Rs 900 crore and full year March 2003 revenues of about Rs 3,450 crore. The
target seems achievable and considering the aggressive employee addition during
the second quarter, the company is slated to achieve the set targets easily.
Infosys’ foray into the BPO space has begun generating revenues. Progeon
Ltd, their BPO arm, posted a turnover of Rs 2 crore during the quarter with an
employee strength of just 287. Post the announcement of the second quarter
results, the share price of Infosys jumped from Rs 3,500 to cross the Rs 4,000
mark.
Satyam Computer Services
Market Capitalization: Rs 7,465 crore
While Satyam Computer Services may not meet its guidelines
for fiscal 2003, it has maintained sequential growth in the topline during the
last two quarters. And not wanting to be left behind in the BPO bandwagon,
Satyam has forayed into this IT enabled space by forming Nipuna, a Business
Process Outsourcing company.
Satyam reported a 7% q-o-q jump in revenues to Rs 499.14
crore in the second quarter ended September 2002. Its net profit, excluding the
sale of stakes in the JV with GE, fell 4% sequentially to Rs 103.61 crore.
During the quarter Satyam added 23 new customers and in the past one year, it
has added 22 Fortune 500 customers. Satyam sold off its 50% stake in the JV with
GE for Rs 14.55 crore and also reduced its holding in Satyam Infoway from 57% to
35%. The equity reduction would take place consequent to fresh issuance of
equity amounting to $ 20 million to Softbank Asia Infrastructure Fund and
Venture Tech. Satyam expects to close fiscal 2003 with revenues of approximately
Rs 2,100 crore and a net profit of Rs 495 crore. Its 200-seater BPO subsidiary,
Nipuna was inaugurated in October 2002.
Satyam’s share movement has been highly volatile. Satyam touched a low of
Rs 120 in the month of September 2001 and a high of Rs 301 during January 2002.
The share price dipped below the Rs 250 mark in May 2002 to touch a low of Rs
192 in August 2002. It currently trades at Rs 237 and has a market
capitalization of Rs 7,465 crore.
HCL Technologies
Market Capitalization: Rs 4,754 crore
The highly tech focused company made a few changes in its
business model by entering the enterprise business, reducing its focus on
technology work and aggressively acquiring companies or entering joint ventures
to improve its performance. While HCL Technologies has been able to sustain its
topline performance, the bottomline continues to dip on rapidly increasing
costs, indicating the need for the topline to grow at a much higher rate.
HCL Technologies’ disappointing performance in the fourth
quarter ended June 2002 and in the quarter ended September 2002 led to a sharp
decline in its share price. While the company has managed to improve its
revenues, the net profit has shown negative growth over the past few quarters In
the fourth quarter ended June 2002, HCL Tech’s revenues stood at Rs 432.30
crore, up 17% y-o-y and 6% q-o-q. Its net profit however slipped 19% y-o-y and
20% q-o-q to Rs 124.17 crore. In the full year ended June 2002, HCL Tech’s
revenues jumped 16% to Rs 1629.27 crore whereas its net profit went up by 4% to
Rs 442.91 crore. In the first quarter ended September 2002, HCL Tech reported
revenues of Rs 442.44 crore, up 2% q-o-q and 19% y-o-y. It’s net profit stood
at Rs 74.84 crore, down 26% q-o-q and 33% y-o-y.
HCL Technology decided to focus on acquisition / JVs to make
inroads in the enterprise and application services arena. The company’s
strategy of entering into joint ventures, alliances, and acquisitions seems to
be paying off, atleast as far as their contribution to the performance is
concerned. In the fourth quarter, revenues from these initiatives formed 16% of
the total revenues and grew by 37%. HCL Tech was perhaps the only aggressive
acquirer amongst the Indian IT companies during the year. Having formed a JV
alliance with Deutsche Software last year, the company recently acquired US
based IT Services company–Gulf Computers, formed a 51:49 joint venture with
Jones Apparel Group (JAG), a Fortune 500 company, another with m a partners, a
consulting firm in the financial space, acquired 35.5% stake in Aquila
Technologies and entered into a strategic alliance with Sento Corporation.
HCL Tech touched a low of Rs 103 during September 2001 and a high of Rs 324
in January 2002. It has since declined on poor quarterly performances and
currently trades at Rs 165 with its market capitalization at Rs 4,754 crore. HCL
Technologies management capability and ability to nurture and integrate
operations would decide the future for this company.
i-Flex Solutions
Market Capitalization: Rs 2,327 crore
Mumbai based i-Flex, a subsidiary of Citibank, recently came
out with a public issue of Rs 210 crore, offering shares with a face value of Rs
5 at Rs 530 each. Listed during August, the company’s share price dipped to
below the offer price but has gradually improved as news of fresh orders and the
excellent second quarter results pushed the share price up. The company is
currently ranked among the top 5 market-capitalized companies and perhaps the
only one successful in software products
i-Flex focuses on the niche banking and financial services
industry, and its flagship product–Flexcube has been ranked as the world’s
second largest selling wholesale back-office banking systems in the
International Banking Systems (IBS) UK Sales League Tables for 1999, 2000 and
2001.
In the full year ended March 2002, i-Flex achieved consolidated revenues of
Rs 435.72 crore, out of which 60% came from the products segment and the balance
from software services. In products, the company garnered around 98% of the
revenues from FLEXCUBE. iFlex achieved consolidated revenues of Rs 167.69 crore,
up 64% y-o-y and 28% q-o-q. i-Flex was listed at Rs 549 in July 2002 and touched
a low of Rs 435 within the first few days. The share price has since improved
performance on the bourse and buoyed by the excellent second quarter results,
has crossed Rs 630. i-Flex is gaining confidence among individuals as well as
institutional investors and is likely to cross the Rs 700 mark soon.
Digital GlobalSoft
Market Capitalization: Rs 1,591 crore
With the successful acquisition of Compaq Computer Corp by
Hewlett Packard a few months back, Digital is once again in the limelight as
investors continue to argue over the future of the company as an entity.
According to market rumors HP would like to de-list the company and merge it
with HP-ISO, a 100% software subsidiary already operating in India. However,
Digital maintains that HP would not de-list it and the process of merger would
take place anytime in the next two quarters
The merger process would have an interim negative impact on
the performance of the company as is evident from the company’s second quarter
results. With the management focusing on integration, Digital witnessed a
sequential de-growth in net profit after a spate of excellent quarterly
performances in the last two years.
One of the star performers since the past two years, Digital
reported a turnover of Rs 332.11 crore and a net profit of Rs 92.67 crore for
the full year ended March 2002. In the first quarter, its revenue grew 2% q-o-q
to Rs 96.10 crore whereas its net profit grew 4% q-o-q to Rs 27.60 crore. In the
second quarter ended September 2002, revenues were down 1% sequentially to Rs
94.87 crore whereas the net profit was down 4% to Rs 21.37 crore. Digital
achieves major revenues from its parent company but has gradually reduced its
dependence on its parents by acquiring non-HP clients during the past one year.
However, the acquisition of Compaq by HP is expected to create more
opportunities for Digital.
Digital recovered from a low of Rs 206 in September 2001 to touch a high of
Rs 780 in May 2002. The share has since declined and touched a low of Rs 457 in
October 2002 courtesy rumors of possible de-listing of its shares from the stock
exchange. Digital currently trades at Rs 484 and is likely to be range bound
until there is clarity regarding its future.
Mphasis BFL
Market Capitalization: Rs 935 crore
After the merger of BFL software with Mphasis, the company
has been through a tough time with regard to integrating the operations. The
process has paid off well as the company has stabilized its operations in the
services segment and also seen a sharp improvement in the performance of its
call center subsidiary–MsourceE.
Mphasis BFL closed the quarter ended September 2002 with a net profit of Rs
16.14 crore. While revenues were higher by 35% y-o-y and 15% q-o-q, the net
profit was up by 61% y-o-y and 16% q-o-q. The performance includes the
financials of its BPO subsidiary MsourceE, which had an excellent second
quarter. Revenues of MsourceE 14.58 crore in the quarter ended June 2002 to Rs
22.38 crore in the quarter ended September 2002. MsourceE, which managed to
break even last quarter with profit of Rs 22 lakhs reported a net profit of Rs
1.20 crore. On the other hand, the software services too reported a 7%
sequential growth at Rs 80.55 crore after three flat quarters. Mphasis’ share
touched a low of Rs 73 in September 2001. The performance in the second quarter
pushed the share price to above Rs 500 levels. Mphasis has stabilized at the
level of Rs 540 and has a market capitalization of Rs 935.22 crore. With
expectation of improved performance in the second half of fiscal 2003, the share
price is unlikely to see a downside from the current levels.
Polaris Software Labs
Market Capitalization: Rs 775 crore
Listed a couple of years ago and a prominent player in the
BFSI space, Chennai based Polaris Software is slated to leap into the top league
of Indian Software companies once it finally merges Orbitech Solutions with
itself. Orbitech, a 93.25% subsidiary of the Citigroup, would be merged with
Polaris at a ratio of 42.65 shares of Polaris for every 100 shares of Orbitech.
Post merger, Citibank will hold a 44% stake in merged Polaris Software Labs.
Incidentally, Citibank holds 43% stake in i-Flex Solutions. Orbitech closed
fiscal 2002 with revenues of Rs 320 crore whereas the consolidated revenues of
Polaris were Rs 280 crore.
Polaris’ performance has however been unimpressive since
last year with revenues moving at a flat rate since the past six quarters In the
first quarter ended June 2002, revenues stood at Rs 70.54 crore, flat y-o-y and
up 5% q-o-q. Whereas in the second quarter ended September 2002, revenues stood
at Rs 75.89 crore, up 8% q-o-q and 4% y-o-y. The net profit in the second
quarter fell 35% q-o-q and 41% y-o-y to Rs 9.27 crore. Polaris achieves 75% of
the revenues from BFSI and has an active clientele base of 106 with Citibank
being the major client.
The news of the merger with Orbitech changes in the merger ratio and
unimpressive quarterly performance impacted the share price of Polaris during
last year. While the announcement of the merger pulled up the stock price, poor
results led to profit bookings. It moved in a range of Rs 175-220 until May 2002
when the announcement of a possible merger with Orbitech pulled the stock price
to a high of Rs 281. Polaris has since declined after poor performance and
currently trades at Rs 151.
Moser Baer (India)
Market Capitalization: Rs 677 crore
It was a power packed performance by this Delhi based leading
player of recordable and erasable compact disks (CD), digital versatile discs (DVD)
and the leader in floppy diskettes. Moser Baer is the lowest cost manufacturer
of CDRs in the world and is expanding its capacity at a rapid pace. The company
has increased the capacity of CDs to 760 million units perannum and is focusing
on the fast growing DVD market. The prices of CDs have been on the downturn
since the past few months, which affected its performance in the second quarter
of current fiscal. The company nevertheless expects 27% growth in the bottom
line in March 2003.
Moser Baer witnessed a sharp decline in its operating margins
in the second quarter ended September 2002. The second quarter net profit fell
4% q-o-q and 2% y-o-y to Rs 53.15 crore on a turnover of Rs 215.32 crore, which
was up 11% q-o-q and up by 29% y-o-y. Moser Baer’s operating margins fell from
49% in the quarter ended June 2002 to 43% in the quarter ended September 2002.
It closed fiscal 2002 with revenues of Rs 678.60 crore.
Moser Baer jumped from a low of Rs 214 in September 2001 to a high of Rs 365
in February 2002 on improved performance in the third quarter ended December
2001. With the prices of CDRs coming under pressure in 2002 Moser Baer witnessed
pressure on its operating margins. The share price has been on a gradual decline
and the performance of the second quarter led to massive offloading. Moser Baer’s
share price dipped below the Rs 200 mark and is currently trading at around Rs
140.
e-Serve International
Market Capitalization: Rs 632 crore
Formerly known as Citicorp Securities & Investments Ltd,
e-Serve International, provides transaction processing solutions, customer care
solutions and technology services to companies engaged in banking, insurance,
capital markets, mutual funds and e-markets. A part of the Citigroup, e-Serve
provides services predominantly to its parent company Citibank across the globe.
Citibank Overseas Investment Corporation, currently holds 44.38% equity in
e-Serve.
e-Serve’s witnessed a sharp improvement in the
profitability during the fourth quarter of fiscal 2002. While the revenues were
up 6% q-o-q to Rs 59.80 crore in the quarter ended March 2002, net profit leaped
85% q-o-q to Rs 5.50 crore. In the first quarter ended June 2002, revenues were
down by a percent to Rs 58.93 crore and net profit up 1% q-o-q to Rs 5.57 crore.
Similarly, in the second quarter ended September 2002, revenues jumped 3% q-o-q
to Rs 60.88 crore and net profit was up 6% to Rs 5.88 crore.
e-Serve was trading at Rs 160 in September 2001 with extremely low volumes.
The share began its upward journey to its peak at Rs 666 in the month of May
2002. e-Serve has since moved in a range of Rs 500 to Rs 570 and currently
trades at Rs 509. With sufficient business flow and increasing export revenues,
e-Serve is expected to sustain and improve its performance in the current
fiscal.
CMC
CMC provides services in hardware maintenance, system
integration, third party maintenance, networking services, education, and
training. CMC was recently acquired by Tata’s IT arm, Tata Consultancy
Services (TCS) from the government of India. TCS acquired the 51% stake from the
government at Rs 157 per share and came out with an open offer to acquire
another 20% stake from the public at Rs 281 per share. The open offer received
lukewarm response.
CMC closed fiscal 2002 with revenues of Rs 546.70 crore and a net profit of
Rs 33.64 crore. The company achieves substantial revenues from systems
integration in the domestic market and from government and related agencies with
predictably the January-March quarter making the highest contribution to its
turnover. CMC achieved revenues of Rs 208.35 crore and a net profit of Rs 13.11
crore in the quarter ended March 2002. In the first quarter ended June 2002,
revenues were up 8% y-o-y to Rs 96.75 crore whereas the net profit was up 116%
to Rs 6.64 crore. The performance in the second quarter was poor with revenues
declining 2% y-o-y to Rs 131.07 crore and net profit declining by 50% to Rs 5.20
crore. The second quarter results led to massive selling in the company’s
shares.
GTL
GTL is a comprehensive player in the Network Engineering and
IT Services industry providing software development and services, deployment of
IT infrastructure for Internet and telecom companies, call center and managed
network services, VPN and software development services. The company’s
services under the Network Engineering Services include network deployment,
installation, and operations on a turnkey basis to telecom services providers
and the IT Services Division. In the IT Services division, GTL provides services
in software development, maintenance and support, project management, data
centers, VPN, managed networks, network consultancy and network security.
GTL’s performance in the last six quarters has seen
revenues moving at a snail’s pace amidst volatile profitability. GTL’s
revenues for the full year ended March 2002 stood at Rs 547.81 crore and net
profit at Rs 102.04. In the first quarter ended June 2002, GTL’s revenues were
up 7% sequentially to Rs 146.04 crore but net profit was down 22% sequentially
at Rs 24.55 crore. Similarly, in the second quarter ended September 2002, while
the revenues grew 4% q-o-q to Rs 151.66 crore, net profits fell 28% q-o-q to Rs
17.70 crore.
Hughes Software Systems
The global slowdown in the telecom spending took its toll on
telecom focused software company Hughes Software Systems. Hughes provides
communications-related software services, products, and solutions to the global
communication OEMs. The company is a part of Hughes Network Systems (HNS), which
in turn is a part of US based Hughes Electronics Corporation. Hughes achieves
revenues from products, HNS related business and services to non-HNS clients.
Hughes has entered the BPO space and has signed its first contract with the
DirecWay Product Line of HNS to provide technical help desk
Hughes’ topline has been on the decline since last year as telecom spending
declined sharply and major telecom and communication vendors were forced to cut
the work force due to massive losses. Hughes revenues declined 3% q-o-q to Rs 58
crore in the fourth quarter ended March 2002 and further by 18% to Rs 47.40
crore in the first quarter ended June 2002. Its net profit too fell sequentially
by 12% to Rs 12.70 crore and 65% to Rs 4.40 crore in the quarters ended March
2002 and June 2002 respectively. Hughes has however shown some signs of recovery
with its revenues increasing 10% q-o-q to Rs 52.10 crore and net profit by 89%
q-o-q to Rs 8.30 crore in the second quarter ended September 2002.
Mastek
The Mumbai based Mastek provides software services in the
United States, UK/Europe, and the Asia-Pacific region through its three
subsidiaries. The Mastek group’s performance has been mixed in the last couple
of years, first due to the economic slow down in the Asia-Pacific region and
then the events in United States. Mastek currently focuses and achieves major
revenues from the European region and is making efforts to improve its
performance in the US region. Mastek recently entered into a JV with Deloitte
Consulting to provide software services to the clients of Deloitte.
Mastek closed the full year ended June 2002 with revenues of Rs 288.09 crore,
up 10% over previous year. Its net profit jumped 352% to Rs 38.23 crore thanks
to the improved performance in the second half. In the first quarter ended
September 2001, Mastek reported revenues of Rs 91.63 crore, up 43% y-o-y and 2%
q-o-q. Net profit in the first quarter stood at Rs 15.25 crore, up 271% y-o-y
and down 25% q-o-q. While 60% of the revenues came from the European operation,
the US market contributed 26% of the revenues.
NIIT
Delhi based NIIT has been severely hit by the global slowdown
in the IT sector last year. A major player in the IT education segment and
software services, NIIT saw a sharp fall in revenues in the IT education segment
as layoffs in the software sector and oversupply led to a slump in the demand
for IT education. NIIT’s software services segment, which traditionally moved
at lower than the industry rate too felt the brunt of the slowdown, which led a
sharp fall in the company’s revenues and profitability. Although, NIIT has
seen recovery in the IT education segment in the past couple of quarters, a
full-scale recovery is ruled out in the immediate future.
NIIT closed the year ended September 2001 with revenues of Rs 1138.90 crore
and net profit of Rs 71.10 crore. The performance of the education segment has
been improving in the past three-quarters. Revenues from IT education have
increased from Rs 74.23 crore in the quarter ended December 2001 to Rs 81.40
crore in the quarter ended March 2002 and further improved by 13% sequentially
to Rs 9.20 crore in the third quarter ended June 2002. However, revenues from
software services were flat in the third quarter ended June 2002 at Rs 96.40
crore after they had improved 5% sequentially in the second quarter ended March
2002.
Rolta India
Rolta is a leader in the engineering software services
segment and its operations include manufacturing and sales of engineering
workstations and providing solutions in the CAD/CAM/GIS conversion area. The
company is engaged in providing AM/FM and GIS, Plant Design Automation (PDA) and
Mechanical Design Automation (MDA) and e-services. It derives major revenues
from domestic operations providing CAD/CAM solutions to state government and its
agencies. Moreover, it has an exclusive tie up with Integraph, the worldwide
leader in AM/FM and GIS and also for providing on-site and off-site services on
Integraph’s Plant Design System (PDS).
Rolta closed the year ended December 2001 with revenues of Rs 300.81 crore
and a net profit of Rs 105.45 crore. In the nine months ended September 2002,
the company has clocked revenues of Rs 200.95 crore, which include inter
division sales, and net profit of Rs 76.75 crore. In the third quarter ended
September 2002, while revenues were flat at Rs 60.15 crore, the net profit fell
32% to Rs 20.42 crore.
VisualSoft Technologies
Once tipped to give tough fight to the IT majors, VisualSoft
Technologies was hurt by the dotcom burst as it achieved almost 50% of its
revenues from Internet related products. As the product revenues slumped,
VisualSoft strategy to focus on the services segment seems to be paying off.
Hyderabad-based VisualSoft is slowly making a comeback with improved performance
and the focus on more stable services rather than fast growing but risky
products has proved to be the right decision.
VisualSoft witnessed sequential decline in the revenues and profits until the
second quarter of fiscal 2002. The company has since reported sequential growth.
VisualSoft’s revenues in the first quarter ended June 2002 grew 8%
sequentially to Rs 27.87 crore whereas the net profit was 14% up at Rs 7.37
crore. In the second quarter ended September 2002, revenues were up 7% q-o-q to
Rs 29.91 crore and the net profit went up 9% sequentially to Rs 8.07 crore. The
company’s operating margins too have improved from 21% in the second quarter
of fiscal 2002 to 34% in the second quarter of fiscal 2003. Revenues from
products, which formed 8% of total revenues in March 2002, were down to 4% of
total revenues in the second quarter.
Tata Infotech
The Tata group company is largely into software consultancy
and services in the area of insurance and banking, manufacturing and commercial,
public sector, transportation telecommunications and health, and system
integration apart from providing IT education. Once amongst the major players in
the Indian IT industry in terms of revenues, Tata Infotech’s performance has
been disappointing both during and after the software boom.
While most of the major IT players have been able to sustain their
performance, Tata Infotech has continued to slip on disappointing quarterly
performances. Tata Infotech’s performance for the year ended March 2002 was
disappointing compared to the previous year. Tata Infotech reported revenues of
Rs 475.10 crore and net profit of Rs 20.50 crore in the year ended March 2002,
down by 8% and 23% respectively. In the first quarter ended June 2002, Tata
Infotech also reported poor performance with revenues declining 27% y-o-y and
16% q-o-q to Rs 95.79 crore. The company reported a loss of Rs 1.13 crore as
against a profit of Rs 6.92 crore in the immediate previous quarter and Rs 5.42
crore in the corresponding quarter last year.
Mascot
Bangalore-based Mascot is a part of the Nasdaq-listed iGate
and one of the major software services exporters in the country. The company
provides software solutions in the area of application maintenance outsourcing,
E-business, business intelligence, ERP, and mobile commerce. It is yet to
stabilize its performance and offer tough competition to its peers. Despite
having a massive offshore facility in India, Mascot achieves almost 63% of the
revenues from onsite activities and 50% of the total revenues from one client–GE,
which has affected its financial performance as well as the price movement on
the bourses.
For the year ended March 2002, Mascot achieved revenues of Rs 407.38 crore
and a net profit of Rs 45.36 crore, which were higher by 20% and lower by 3%
respectively over the previous year. While the first quarter performance for the
period ended June 2002 was decent with revenues and profit growing sequentially
by 3%, the performance in the second quarter was disappointing. In the quarter
ended September 2002, Mascot reported revenues of Rs 89.32 crore, down 20% y-o-y
and 2% q-o-q. Its net profit stood at Rs 6.31 crore, down 55% y-o-y and 22%
sequentially. Operating margins declined from 9% to 8.28% due to higher direct
cost relating to onsite activity. The lack of performance had an adverse impact
on the share price, which declined sharply after the announcement of the
results.
Tata Elxsi (India)
Tata Elxsi provides design and development services in
technologies that include visual computing, networking and communications,
embedded systems and storage management, Internet, Intranet and groupware. The
company also provides system integration solutions in CAD / CAM, film, video and
broadcast, network design and implementation, and scientific and commercial
computing.
Tata Elxsi’s profitability was impressive for the year ended March 2002
despite a small dip in revenues which were down 6% to Rs 129.80 crore. The net
profit was up 21% to Rs 16.75 crore indicating that margins in niche segments
were not so badly affected as compared to the rest of the sector. In the quarter
ended June 2002, revenues were down 12% y-o-y to Rs 24.71 crore but up 83% y-o-y
at Rs 2.88 crore. The performance in the second quarter was however
disappointing with revenues sliding 8% y-o-y to Rs 27.59 crore and net profit
declining by 9% y-o-y to Rs 2.89 crore