Result Reviews

Mphasis - 1QFY2013

Mphasis announced its 1QFY2013 numbers which underperformed our expectation on the revenue as well as operating front. The dollar revenues came in at US$238mn, down 3.9% qoq, due to decline in onsite volumes on account of holiday season which resulted in shutdown for few days. Revenues from the direct channel grew by 1.0% while revenues from the HP channel declined by 3.9% qoq. In INR terms revenues came in at `1,257cr, down 3.8% qoq. The company again witnessed headcount reduction in Application as well as ITO business by 173 and 15 employees, respectively. The EBITDA margin of the company declined by 215bp qoq to 18.5%. PAT came in at `184cr, down 12% qoq. The company added 22 new clients during the quarter, out of which 14 were added in direct channel. The company remained committed to increase revenues from the direct channel. Source: AngelBroking

ITD Cementation - 4QCY2012

For 4QCY2012, ITD Cementation reported a disappointing set of numbers. The top-line for the quarter declined by 4.0% yoy to `313cr against our estimate `350cr. The company's operating margin contracted by 301bp yoy to 10.5% mainly because of higher employee cost. Major disappointment came on the profit front which stood at `1cr, 88.9% lower on a yoy basis and 77.7% lower than our expectation of `6cr, mainly due to the contraction in the operating margin. However, recently the JV of ITD Cementation with its parent company, ITD, has bagged an order of `546cr from Delhi Metro Rail Corporation (DMRC). The order is scheduled to be completed in 30 months. ITD cementation (standalone) is also expecting an order worth ~`115cr in Ghaziabad for the construction of flyovers with scheduled completion in 15 months. The stock has witnessed a major correction recently and is currently trading at a PBV of 0.5x. Source: AngelBroking