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%.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Provision for contingencies
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (eoy) (m)
Diluted number of shares
Diluted Earnings per share*
P/E (at current price)
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.
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