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Software products: Indian IT's next destination?

Aug 22, 2008

The Indian technology sector has grown by leaps and bounds in the last two decades. The factor that has contributed to this growth has been export of software services. But there is another area of software product business which has not yet been exploited and which can emerge as major growth driver for companies in the future.

Post-budget comments: S. Patkar, CFO, Geometric

Mar 2, 2006

Post the Union Budget, we talked to Mr. Shashank Patkar, CFO of Geometric Software Solutions (GSS), in order to get his views. This is what he has to say.

Mid-cap software: At the crossroads?

Sep 29, 2005

We live in heady times! The markets are literally in stratospheric territory. FIIs have pumped in over US$ 8 bn into Indian equities this calendar year, economic growth is expected to be robust, inflation and interest rates appear to be benign, affluence is on the rise, corporate profits are growing at an enviable pace despite high crude prices. Simply, all seems hunky dory!

Flextronics buyback: Is it a fair deal?

May 5, 2005

Our concerns have come true! When the Singapore-based Flextronics acquired a majority stake in the erstwhile Hughes Software Systems (now Flextronics Software Systems of FSS), we had asked investors to take this news with caution as MNCs have a history of delisting their subsidiaries from the Indian bourses (remember Digital?). The turn of FSS has come as Flextronics has announced its proposal to delist this India-based subsidiary from the Indian bourses through a buyback of all the outstanding

Software: Preview 4QFY05...

Apr 4, 2005

The bulls in the markets seem to be back on track in the last week, after a largely bearish sentiment prevailed in the past few trading sessions. The apprehension was mainly on account of a number of factors. These included broker margin calls, year-end adjustments, higher US rates, reflecting the possibility of FII money flowing out of the markets, high crude oil prices, which could impact corporate profitability and profit booking after the markets touched their lifetime highs. Towards the end

i-flex: Flexing its muscles globally!

Apr 1, 2005

i-flex Solutions is a member of a rare breed in the Indian software industry – it is one of the few in the software space that earns a majority of its revenues from software products. Other software companies like industry bellwether Infosys and Geometric Software also have their own products, but they do not form a really significant part of their revenues.

i-flex: Back to basics...

Mar 23, 2005

i-flex Solutions is a mid-sized software company that operates in a highly specialised area. It is a niche player in the sense that its strategy is to focus exclusively on the banking and financial services industry. It provides software products, services and consulting to the banking, financial services, investment banking, brokerage and insurance industries.

i-flex: Taking the rough with the smooth!

Mar 21, 2005

i-flex solutions is India's premier software products company, operating in the banking, financial services and insurance (BFSI) space. It is the only software company in India that derives most of its revenues from software products (61% in FY04). Its flagship product, Flexcube, has been ranked as the number one selling retail and wholesale banking solution by International Banking Systems (IBS) for three years in a row. Flexcube is a comprehensive retail, corporate and investment banking solut

i-flex: Past performance, future promise…

Feb 14, 2005

In the entire gamut of the Indian software space, there is one company that has brought much-needed recognition to the ‘Made in India’ brand through its world-class product portfolio. The company is i-flex Solutions, which provides comprehensive IT solutions to the Banking, Financial Services and Insurance (BFSI) vertical. It is mainly a products company (61% of revenues in FY04), with services making up the balance.

Software: Rupee volatility takes toll!

Feb 1, 2005

The recently concluded third quarter of FY05 saw Indian software companies reporting a slower (relative to previous quarter) growth in the topline and bottomline, much due to the strong appreciation in the value of rupee vis-à-vis the US dollar. The direct effect was also seen on the operating margins front. In this write up, we analyse the performance of the sector (through consolidation of results of key companies) and see what investors in software stocks can expect going forward.

Indian IT: Meet the leaders!

Dec 8, 2004

The financial year 2004-05 till date has clearly belonged to the large cap software stocks. Be it their financial performance or (consequently) their stock’s performance in the markets, the Indian IT behemoths (read Infosys and Wipro) have surely stolen the show from their mid-cap peers (See chart below). In this article, we will try to take a look at certain reasons that have contributed to this ‘widening of gap’ between these companies.

Software: A reality check

Nov 25, 2004

In continuing with the ‘good work‘ that has aided growth in the past quarters, leading companies from the Indian IT sector have reported improved performance in the second quarter of FY05. The performance has been characterised by a higher growth in the topline, led by strong volumes and stable billing rates and improvement in operating margins, led by cost control measures and a shift offshore.

i-flex : Sour times!

Oct 29, 2004

i-flex solutions (i-flex) has reported poor results for the quarter and half year ending September 2004. While topline growth for both the periods has been good, rising expenditure and consequent decline in operating margins has taken toll on profits, which have declined on a YoY basis.

Software: King(s) of bad times!

Sep 30, 2004

In order to gauge a company’s profitability, the bottomline is the first things many investors look at in the profit and loss account. While net margin is an important indicator, it fails to provide a clear picture of the bargaining power of the company (both with the customers as well as with the suppliers). This in turn, dictates operational efficiency. Here is where operating margins come into play. In this article, we take a look at the trend in operating margins of key Indian software compa

Software: The 'risk-return' matrix

Sep 7, 2004

Stocks from the IT industry are considered to be a defensive play since companies in the sector are 'assumed' to be insulated from the vagaries of inflation and rise in interest rates. However, there is a need to understand that all players in the technology space are not insulated from these uncertainties.

i-flex: Pressure takes its toll!

Sep 2, 2004

Within the highly competitive Indian technology space, where companies are vying to capture the market share and 'mind-share' of global clients, there are a few who have created a niche for themselves and have even emerged successful in their endeavors of increasing their reach in the global marketplace.

Geometric Software: Tough times never last!

Aug 19, 2004

In the highly competitive Indian technology space, the top layer is generally occupied of large companies (like Infosys and Wipro) that have a highly efficient delivery model in place and provide end-to-end services that are usually across the entire spectrum of the value chain. While it is possible only for a few players to imitate these behemoths, the others are well off concentrating on a niche areas or particular domains like banking and finance (i-flex), telecom (Hughes Software) and engine

Indian IT: The 1QFY05 performance

Aug 2, 2004

Almost all major Indian IT companies have announced first quarter results for FY05, reporting strong performance in topline and slower rate of decline in operating margins. This quarter's performance was more of a carrying on with the good work that had been done in the last three quarters. After the pressure that these companies witnessed on the billing rates front owing to slowdown in the US economy and, thus, less spending towards fresh technology implementation, the last three quarters have

Software products: The next step?

Jun 22, 2004

Raising salary levels has been one of the foremost initiatives taken by Indian software companies to ward-off rising competition for talent from MNC technology companies. Be it the second-largest software and services company, Infosys, or the largest provider of software products to the banking industry, i-flex, all have faced tremendous degree of pressure on their bottomlines due to the rise in employee costs during the past few years.

Indian IT: The challenges ahead

May 28, 2004

Despite the slowdown that had engulfed technology spending worldwide, the Indian IT industry continued to grow at a robust rate. As per NASSCOM, Indian software services exports witnessed a CAGR of around 37% during the period FY99 and FY03. During FY04, software services exports are expected to cross the US$ 12 bn level, implying a growth of nearly 25% over FY03.

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