X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Geometric: Solidifying - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Jan 17, 2001

    Geometric: Solidifying

    Geometric posted a heartening performance this quarter by coming out of the red. It has shown a revenue growth of 30% compared to last quarter. But with operating margins at 20% the company has a long way to go. Last quarter it had posted losses due to drop in sales. That was because of its subsidiary through which it sells in the United Sates. The company has taken quick remedial measures and it seems to be getting its act together.

    (Rs m) 2QFY01 3QFY01 Change
    Sales 86 113 30.3%
    Other Income 5 3 -30.6%
    Expenditure 99 90 -9.2%
    Operating Profit (EBDIT) (13) 22  
    Operating Profit Margin (%) -14.9% 19.9%  
    Interest 0 0  
    Depreciation 6 10 59.0%
    Profit before Tax -13 16  
    Tax - -  
    Profit after Tax/(Loss) -13 16  
    Net profit margin (%) -15.0% 14.4%  
    Diluted number of shares 5.2 5.2  
    Diluted Earnings per share*   12  
    *(annualised)      
    P/E (x) 3QFY01 annualised earnings   9.1  

    To streamline operations the management has decided to restructure the company into three groups Geometry, Information Management and Collaborative Engineering. The company now plans to concentrate on areas of information management and collaborative engineering.

    Geometric has a very small onsite presence and therefore an increase in onsite presence will definitely see a rise in revenues. The billing rates currently earned by the company is estimated to be US $ 4,000 4,500 per man month. With onsite projects the company is expecting billing rates in the range of US $ 7,000 8,000 per man month.

    Another advantage the company has is that it is also into products. It has about 90 people working in this area. Some of products are sold as add ons with other high end CAD/CAM software.

    This quarter the company has changed its method of accounting depreciation from written down value to straight-line method. According to the method followed previously the profits would have been lower by about Rs 3 m.

    At the current market price of Rs 113, it is valued at a P/E multiple of 9.4 times its 3QFY01 annualised earnings.

     

     

    Equitymaster requests your view! Post a comment on "Geometric: Solidifying". Click here!

      
     

    More Views on News

    Tech Mahindra: Our Revised View (Quarterly Results Update - Detailed)

    Aug 2, 2017

    A better than expected turnaround in performance results in a change in view.

    Wipro: A Decent Start to the Year (Quarterly Results Update - Detailed)

    Jul 27, 2017

    Digital services drive growth for Wipro in 1QFY18.

    Infosys: A Decent Start to FY18 (Quarterly Results Update - Detailed)

    Jul 14, 2017

    Infosys starts FY18 on an encouraging note with a stable performance.

    TCS: Currency Volatility Plays Spoilsport (Quarterly Results Update - Detailed)

    Jul 14, 2017

    TCS starts FY18 decently despite an adverse currency impact.

    HCL Tech: Ends FY17 on Expected Lines (Quarterly Results Update - Detailed)

    Jun 29, 2017

    Volvo partnership caps a good year for HCL Technologies.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    Proxy Plays: A Smart Way to Bet on 'Off Limits' Companies(The 5 Minute Wrapup)

    Aug 4, 2017

    The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    GEOMETRIC LTD SHARE PRICE


    Mar 10, 2017 (Close)

    TRACK GEOMETRIC LTD

    • Track your investment in GEOMETRIC LTD with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks

    GEOMETRIC LTD - HP COMPARISON

    Compare Company With Charts

    COMPARE GEOMETRIC LTD WITH

    MARKET STATS