'Jab Tak Hai Jaan' is the last work and words from legendary filmmaker Yash Chopra, who as director and producer gave support and fillip to many an artiste's career and making them into superstars
RS Software India, a poster boy of the dot-com era has turned around, cleansed itself and has put yet another strong quarterly results
RS Software India is on a roll and has defied expectations, once again. It posted a year-on-year (y-o-y) increase of 66% in operating profit, to Rs13.59 crore, for the September 2012 quarter. Furthermore, sales have increased 28% y-o-y, to Rs77.52 crore from Rs60.44 crore, despite challenging economic climate and a volatile rupee. Its net profit zoomed 63% to Rs9.48 crore. It is pertinent to note that the company has weathered the economic storm, showing its resilience, when most small-cap companies succumb to global pressures.
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Despite good quarterly showing, its valuation remains attractive. The market capitalisation is just 3.85 times its operating profits, while its return on equity is a stupendous 42%. Very few analysts, if at all, are covering this little known small-cap stock. The operating profit comfortably beat our three-quarter y-o-y growth metric of 44%. At the same time, its operating profit grew nine times out of the last 11 quarters—a powerful sign of strong growth. The fact that operating profit grew more than sales means the company’s operations are smooth and controlled. Similarly, its sales growth has been steady and firm, with the three-quarter y-o-y growth rate at a solid 33%.
The long-term prospect looks strong as the global economy transitions from paper-based transactions to electronic form. As more and more people are using internet, the importance of electronic payment is only poised to go upwards. This is where RS Software comes into the picture. It has developed a payments laboratory for research in the areas of business intelligence, mobile payments and payment gateways.
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The company was a poster boy of the dot-com boom in the early 2000s when its stock crashed and fell into a long period of decline and stagnancy. However, it has made a strong comeback after it has wrung out the excesses. The company is focussed on providing consulting solutions, enterprise application integration, applications management and outsourcing services to the electronic payment industry.
The stock has gone up 167% since recommending the stock at Rs67 in our earlier issue of Moneylife.
Suspension of flying licence implies an immediate halt to all bookings on the entire Kingfisher network as well as through travel agents, civil aviation ministry officials said
Aviation regulator Directorate General of Civil Aviation (DGCA) today suspended the flying licence of beleaguered Kingfisher Airlines for failing to come up with a viable plan for its financial and operational revival and resolve the impasse with its employees over payment of their salary dues, reports PTI.
DGCA has suspended the Scheduled Operator Permit of Kingfisher Airlines till further orders, civil aviation ministry officials said.
Suspension of flying licence implies an immediate halt to all bookings on the entire Kingfisher network as well as through travel agents, the officials said.
The liquor baron Vijay Mallya-owned carrier has been saddled with a loss of Rs8,000 crore and a debt burden of another over Rs7,524 crore, a large part of which it has not serviced since January. The airline currently has only 10 operational aircraft compared to 66 a year ago.
Asked why the license was suspended, the officials said the government did not want a situation where the airline, which was on cash-and-carry mode for almost all service providers, re-starts operations and then keeps flying in fits and starts, as has been happening since last year-end.
The airline, under a lockout since October one and resultant suspension of entire operations, had on Friday sought more time to respond to the DGCA’s show-cause notice but did not give any timeline by which it would do so.
The DGCA had issued the show-cause notice on 5th October to the crisis-ridden carrier asking why its flying licence should not be suspended or cancelled as it was not adhering to its flight schedule and “abruptly cancelling its flights time and again during the last 10 months”, causing great inconvenience to the travelling public.
The aviation regulator had given the airline 15 days to respond, the deadline for which expired today.