RS Software’s March quarter results showed how dire global circumstances were but still managed to put in decent numbers
RS Software has reported consolidated revenues of Rs76.08 crore for the quarter ended 31 March 2013, up by 8.17% year-on-year (y-o-y) from Rs70.46 crore in the corresponding period last fiscal. However, its net profit dipped only slightly by 1.74% y-o-y to Rs9.43 crore but was higher by 0.96% on a sequential basis.
Moneylife had earlier recommended RS Software at Rs67.30 but recommended investors to exit the stock at Rs173.50, with handsome profit of 158%. The original recommendation can be accessed here. It was the poster-boy of the dotcom boom but has since mended it ways and now it is putting a string of good performances.
According to Moneylife database, its net sales (on standalone basis) grew at 6% which is below its three-quarter yoy sales growth of 13%. The company’s market capitalisation is quoting at just 3.57 times its operating profit. Yet its return on networth is an astounding 42%.
On a yearly basis, according to the company’s statements, total export income for the year 2013 grew to Rs316.95 crore (from Rs261.86 crore) whereas domestic income stood at Rs1.21crore. These are impressive numbers given that much of the global economy has been jittery and almost its entire income is derived from exports. Its consolidated revenue for the 2012-2013 fiscal is Rs322.52 crore representing a growth of 22% from the corresponding year of the previous year. At the same time, its yearly net profit stood at Rs37.93 crore recording a growth of 31% over the corresponding previous year. Total assets of the company for 2013 fiscal stood at 142.76 crore while it was 122.78 crore for the 2012 fiscal.
Commenting on the results, Raj Jain, MD & CEO, RS Software India said, “The growth in the need for solutions helped RS Software report attractive growth, evident from its consistent performance over the past few years. The payment processing ecosystem and industry is a $900 billion market in revenues and RS Software is attractively positioned to capitalise on this growing global opportunity. The share of electronic payments in non-cash payments in India have shown an upward trend with electronic payments by the end of the year 2011-12 constituting 91% in terms of value and 48% in terms of volume. We are a specialist in the payments business with over 20 years of experience, and will continue to report sustainable growth leveraging the opportunities both domestically and overseas”.
He further added, “With the e-commerce market in India having grown 34% on an average since 2005 and Tier I and Tier II cities contributing largely to the e-commerce revenue pie, it is an exciting time for all of us in the payment chain.
The board of directors of has proposed a dividend of 20 % in addition to interim dividend of 15% declared in January 2013, for every equity share, for the year ended on 31 March 2013.
A close above 5,555 on the Nifty may bring in some gains. On the downside, support remains in the region of 5,480-5,450
The market closed lower on a sell-off in IT and technology shares after Infosys announced disappointing fourth quarter results this morning and on weak economic indicators. A close above 5,555 on the Nifty may bring in some gains. On the downside, support remains in the region of 5,480-5,450. The National Stock Exchange (NSE) reported a lower volume of 49.99 crore shares and advance-decline ratio of 548:761.
The Indian market opened on a subdued note on the back of disappointing fourth quarter numbers and growth guidance by IT services major Infosys and concerns about the industrial growth figures for February, which would be released later in the day. Markets in Asia were mixed in morning trade as the yen strengthened against the dollar while US markets closed higher overnight on reports that jobless claims for the week ended 6th April fell more than expected.
The Nifty opened 73 points down at 5,521 and the Sensex resumed trade at 18,276, a cut of 266 points from its previous close. The lacklustre performance by Infosys pulled the BSE IT index down 9% in early trade.
The Bangalore-based IT services company Infosys reported a 3.4% rise in net profit to Rs2,394 crore while revenues grew 18.09% to Rs10,454 crore on a year on year basis. However, the company stated that its revenues are expected to grow between 6% and 10% in FY14.
The benchmarks hit their high, albeit in the negative terrain in initial trade on select buying. At this point the Nifty touched 5,545 and the Sensex inched up to 18,338. However, the market remained range-bound in the negative terrain on worries that Infosys’ muted growth would influence other companies.
Of the economic indicators released this morning, retail inflation declined to 10.39% in March, snapping a five-month rising trend, on the back of a fall in prices of vegetables and protein-based items. This apart, industrial growth slipped to 0.6% in February this year mainly on account of contraction in power generation and mining output and poor performance of manufacturing sector.
A lower opening of the key European markets also weighed on domestic sentiments in moon trade. The decline led the indices to their lows with the Nifty going down to 5,495 and the Sensex retracting to 18,186.
The market continued to trade lower dragged by IT and technology stocks in the late session and settled sharply lower. The Nifty declined 65 points (1.17%) to 5,529 and the Sensex plunged 300 points (.62%) to finish the trading session at 18,243.
Among the broader indices, the BSE Mid-cap index fell 0.14% and the BSE Small-cap index declined 0.39%.
The top sectoral gainers were BSE Fast Moving Consumer Goods (up 1.95%); BSE Power (up 1.02%); BSE Bankex (up 0.96%); BSE Oil & Gas (up 0.64%) and BSE PSU (up 0.47%). The main losers were BSE IT (down 11.09%); BSE TECk (down 8.87%); BSE Capital Goods (down 0.69%); BSE Consumer Durables (down 0.61%) and BSE Realty (down 0.48%).
Sixteen of the 30 stocks on the Sensex closed in the positive. The chief gainers were ITC (up 2.75%); State Bank of India (up 1.98%); Hindalco Industries (up 1.61%); Hindustan Unilever (up 1.49%) and Bajaj Auto (up 1.38%). The top losers were Infosys (down 21.33%); Wipro (down 4.72%); Coal India (down 1.78%); TCS (down 1.63%) and Larsen & Toubro (down 1.31%).
The top two A Group gainers on the BSE were—Jaiprakash Associates (up 4.98%) and JSW Steel (up 4.24%).
The top two A Group losers on the BSE were—Infosys (down 21.33%) and Wockhardt (down 9.99%).
The top two B Group gainers on the BSE were—HB Stockholdings (up 20%) and Sankhya Infotech (up 19.96%).
The top two B Group losers on the BSE were—Yash Papers (down 19.90%) and Jindal Hotels (down 19.85%).
Of the 50 stocks on the Nifty, 36 ended in the green. The key gainers were Jaiprakash Associates (up 4.67%); Ambuja Cement (up 3.54%); ITC (up 2.51%); BPCL (up 2.38%) and Lupin (down 2.17%). The key losers were Infosys (down 22.07%); Coal India (down 1.83%); HCL Technologies (down 1.65%); TCS (down 1.62%) and Maruti Suzuki (down 1.61%).
Markets across Asia closed mostly lower as the strengthening of the yen against the dollar saw the Nikkei 225 falling 0.5% in trade today. The Chinese market ended lower on nervousness ahead of the release of key economic data on Monday and sentiment in South Korea was impacted by ongoing concerns of a possible conflict with the North.
The Shanghai Composite declined 0.58%; the Hang Seng lost 0.06%; the KLSE Composite fell 0.50%; the Nikkei 225 contracted 0.47%; the Straits Times slipped 0.44%, the Seoul Composite tanked 1.31% and the Taiwan Weighted fell 0.46%. Bucking the trend, the Jakarta Composite added 0.26%.
At the time of writing, the top European markets were down between 0.46% and 1.23%. At the same time, the US stock futures were in the negative, indicating a lower opening for US stocks later in the day.
Bank home, institutional investors, both foreign and domestic, were net buyers in the equities segment on Thursday. While FIIs pooled in Rs36.63 crore in stocks, DIIs infused 57.71 crore in equities.
The board of Oil India, the nation’s second biggest state-owned explorer, has approved the setting up of an overseas arm to acquire oil and gas properties abroad. The subsidiary will be set up on the lines of ONGC Videsh, the overseas arm of state-owned ONGC, and Bharat PetroResources, a unit of state refiner Bharat Petroleum Corp (BPCL). Oil India closed 0.27% down at Rs526 on the NSE.
Pharma major Dr Reddy’s Laboratories is recalling its muscle relaxant tizanidine tablets from the US market due to labelling issues. The recall was initiated voluntarily by the Hyderabad-based company, as per an intimation from the company to the US Food and Drug Administration. The stock gained 1.85% to close at Rs1,920 on the NSE.
Indian auto major Mahindra & Mahindra has suffered a production loss of around 3,000 engines due to the “tools down” protest by workers of its Igatpuri engine manufacturing facility near Nashik even as the stir entered the fourth day. The plant produces 1,100 engines per day in three shifts for Mahindra’s vehicles such as XUV 500, Bolero, Xylo, Genio and Maxximo. The stock declined 1.32% to close at Rs821.15 on the NSE.
As per SEBI’s directions, all trading members of stock exchanges would be required to submit on a continuous basis, the general business and organisation details, key personnel details, subsidiary and associate or group company details, among others