2026-05-14 17:48:05
SKF India Ltd recommends final dividend of Rs. 40
Cybertech Systems and Software Ltd recommends final dividend of Rs. 4
JSW Dulux Ltd recommends final dividend of Rs. 50
LIC Housing Finance Ltd recommends dividend of Rs. 10
Chemfab Alkalis Ltd recommends final dividend of Rs. 1.25Research
Infotech Enterprises - 2QFY2013 Result Update - Angel Broking
Posted On : 2012-10-21 13:05:47( TIMEZONE : IST )
For 2QFY2013, Infotech Enterprises (Infotech) reported a decent set of results, with an overall volume growth of 3.9% qoq. In the utilities, telecom and content (UT&C) vertical, utilities witnessed a volume growth of 8.2% qoq while content volumes grew by 5.2% qoq. In the engineering manufacturing and industrial products (ENGG) vertical, the aerospace segment witnessed a volume growth of 1.5% qoq and home, transportation and hi-tech (HTH) reported a volume growth of 2.8% qoq. The company added 17 new clients during the quarter. We maintain our Neutral view on the stock.
Quarterly highlights: For 2QFY2013, Infotech reported revenue of US$87mn, up 3.5% qoq, on the back of 3.9% qoq volume growth and 0.3% qoq pricing decline. In INR terms, the revenue came in at Rs.477cr, up 4.5% qoq. The company's EBITDA margin remained almost flat qoq at 18.7%. The operating margin of the company faced headwinds from the net addition of 301 employees and 400bp onsite effort shift which however was offset by tailwinds from increase in utilization level and INR depreciation against USD.
Outlook and valuation: The management has cut its FY2013 USD revenue growth guidance to less than 11% from 11-14% earlier in constant currency terms. To achieve this, the company requires an ask rate of 5% in 3Q and 4QFY2013 which looks demanding and a bit stretched. The key reasons for the cut in guidance were that the company is witnessing delays in deal ramp ups and clients are holding back IT budgets. We expect an USD revenue growth of 9.6% yoy for FY2013. Over FY2012-14E, we expect the company to post a USD and INR revenue CAGR of 11.0% and 14.4%, respectively. We expect the EBITDA and PAT CAGR to be at 14.0% and 17.2%, respectively, over FY2012-14E. At the current market price of Rs.195, the stock is trading at 9.7x FY2014E EPS. We value the company at 10x FY2014E EPS of Rs.20.2, which gives us a target price of Rs.202, and maintain our Neutral view on the stock.
