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Engineering Services is a relatively new segment of the Indian
IT sector, but according to Nasscom, it has witnessed over 40% CAGR in the last
four years. It is estimated that while the global market for engineering
services was $750 bn in 2004, it could cross a trillion mark by the year 2020
out of which around $200 bn is likely to be outsourced.
In a study by Nasscom-Booz Allen Hamilton, Indias share in
this market stands at around 12% and is likely to reach 30% by 2020, making this
sector worth more than $60 bn opportunity for Indian companies.
Consequently, most major Indian software companies have large ES
operations. However, there are limited numbers of listed companies completely
focused on engineering services. These include Rolta and Infotech Enterprises.
Rolta India: Quarterly Revenues
Grow Over 40%
Rolta India is a provider of computer-aided designing (CAD), computer-aided
manufacturing (CAM), geo-spatial information system (GIS) solutions, e-business,
and other information technology (IT)-related services. It is also a provider of
plant design automation (PDA) solutions and services in India. The consolidated
revenue for the quarter ending September 30, 2007 stood at Rs 221.03 crore as
against Rs 154.63 crore in the corresponding quarter of the previous year, a
y-o-y growth of 43%. Similarly, net profit for the quarter ending September 30,
2007 has shown a robust y-o-y growth of 44.2% to Rs 53.83 crore, as against Rs
37.32 crore in the corresponding quarter of the previous year.
During the quarter, Rolta won major projects for mapping and
network database creation from large companies in the telecom and utility
sectors in North America and other geographies worldwide. One of the preliminary
reasons is the acquisition of Orion Technology, a Canadian software and
integration company specializing in enterprise Web-GIS solutions. Rolta Thales (RTL),
a joint venture between Rolta and Thales, France, launched its C4ISTAR
solutions developed on the basis of the on-going technology transfer from Thales
and are customized for the Indian defense forces. The company also set up an
in-house Rolta Academy during the quarter. The academy will provide specialized
training to over 1,000 professionals every year in GIS, engineering design and
IT technologies to impart domain expertise and skills specific to the companys
business practices. The academy is equipped with cutting edge technologies,
software tools, and a large dedicated faculty.
|
Consolidated Financials |
|
Particulars |
Quarter |
Growth
(%) |
Year Ended June 30, 07 |
|
Sept 07 |
Sept 06 |
|
Sales |
221.03 |
154.62 |
42.9% |
599.14 |
|
Other Income |
9.63 |
2.66 |
262.03% |
8.53 |
|
EBITA |
84 |
60.8 |
38.2% |
286.6 |
|
EBITA (%) |
38% |
39.4% |
NA |
40.3% |
|
Net Profit |
53.82 |
37.31 |
43.3% |
182.25 |
|
Equity |
80.12 |
79.92 |
NA |
79.92 |
|
EPS |
6.7 |
4.7 |
41.7% |
22.7 |
|
All figures in Rs crore
unless indicated otherwise. All figures are rounded-off |
The company acquired 5 acres of land in Nonadanga in east
Kolkata, from the West Bengal government, for developing an IT park. Rolta would
invest over Rs 250 crore for the IT park, which will have extensive facilities
for delivery of IT-based GeoSpatial services, engineering design services,
software development, and ERP implementation services worldwide. Shares of the
company trade at Rs 220. Page(s) 1 2
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