PSI : Performance disappoints - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

PSI : Performance disappoints

Feb 2, 2001

PSI has shown a disappointing performance for 4QFY01. Its revenue growth, QoQ basis, has been quite low at just 12% and the net profit is up by 9.3%. This is despite a 1384% jump in other income and a positive tax inflow of Rs 13 m. If we exclude this the profits would have actually dropped by 56%.

(Rs m) 3QFY01 4QFY01 Change FY00 FY01 Change
Sales 208 233 12.0% 598 830 38.9%
Other Income 1 15 1384.0% 13 20 57.6%
Expenditure 158 204 29.3% 480 657 37.0%
Operating Profit (EBDIT) 50 29 -42.8% 118 173 46.7%
Operating Profit Margin (%) 24.0% 12.3%   19.7% 20.8%  
Interest 1 2 91.0% 5 4 -13.6%
Depreciation 8 8 2.8% 13 25 89.1%
Profit before Tax 42 33 -20.6% 112 164 45.7%
Tax 0 (13)   8 (8) -193.9%
Provision for contingencies 0 0   0 0  
Profit after Tax/(Loss) 42 46 9.3% 104 171 64.0%
Net profit margin (%) 20.2% 19.7%   17.5% 20.6%  
Extraordinary item 0 11   0 11  
Net profit 42 57 35.4% 104 182 74.5%
No. of Shares (eoy) (m) 7.3 7.6   7.6 7.6  
Diluted number of shares 7.6 7.6   7.6 7.6  
Diluted Earnings per share* 23.0 24.2   13.7 22.5  
P/E (at current price) 13.3 12.7   22.3 13.6  

However, the real disheartening factor is the drop in operating margins from 24% in 3QFY01 to 12% in 4QFY01. This is because its other expenditure has almost doubled. The company claims this includes compensation for termination of business. Currently this figure is not available separately.

However, one area that PSI has shown improvement is that its employee costs have come down from 52% of revenues in 3QFY01 to 45% of revenues in 4QFY01. On a YoY basis the total income figure has gone up by 18.2% and the net profit has risen by 72% in 4QFY01. The figures are quite low compared to the industry standards.

At a current market price of Rs 307, the stock is trading at a P/e multiple of 13.6 times its FY01 annualised earnings.

Equitymaster requests your view! Post a comment on "PSI : Performance disappoints". Click here!


More Views on News

If You had Invested Rs 1 Lakh in TCS in 2011, this is how Much You Would have Today (Views On News)

Nov 30, 2021

Did TCS perform better than the market and its peers?

India's Top 4 IT Companies are Struggling. Here's Why... (Views On News)

Oct 22, 2021

As attrition rates are unbelievably high, top Indian IT companies are going for big-ticket raises, and much more hiring this year.

Infosys had an Exceptional Quarter Buoyed by Huge Deal Wins. Revenue Guidance Boosts Stock (Views On News)

Oct 14, 2021

Infosys raised its forecast for annual revenue growth to 16.5-17.5% from the earlier 14-16%, predicted in July 2021.

Info Edge: The Anatomy of an Indian Internet Behemoth (Views On News)

Oct 2, 2021

Info Edge is very popular in the Indian startup ecosystem due to its active participation in funding events.

This Indian Company is Tapping into the Huge Autonomous Driving Opportunity (Views On News)

Sep 14, 2021

Despite many challenges, Indian companies and startups have not shied away from entering this space.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

The Biggest Winners and Losers in India's Transition to Electric Vehicles (Profit Hunter)

Nov 26, 2021

How India's EV transition could be a major headwind for the incumbents.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Mar 25, 2009 (Close)


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