Tata Infotech ties up with US partner - 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?  

Tata Infotech ties up with US partner

Feb 23, 2000

Tata Infotech has tied up with Wausau Financial Services for software development, joint marketing of financial services, consulting packages and manufacturing automatic teller machines. Wausau is an international provider of payment processing solutions for financial and commercial businesses apart from being a value–added reseller for partners such as Fuji, Unisys and Fuji.

Tata Infotech has had long–standing relationship with Unisys and it was this agreement with Unisys which helped it bag a lot of customers in the USA. In fact, the marketing was done under the brand name of Unisys itself. This contributed almost 65% of its revenues in FY99.

After Unisys set up a 100% subsidiary in India and the Y2K contracts tapered off it was the domestic system integration work which helped shore up the company’s topline. However, the margins in the domestic market were far lower than those that accrue from the US market. Hence the net profit were down 84% for the quarter ended December 1999.

This tie up could possibly serve as an anti–dote for loss of the turnover accruing from the break up with Unisys. However the details of the contract as to the revenue potential of the agreement and the margins that could accrue to the company are not known.

However the potential for automatic teller machines in India is immense and if the Tata Infotech can create a brand name for itself it could turn out to be a lucrative business in the future.

Market View:
Tata Infotech has underperformed the current boom in the software sector primarily due to concerns pertaining to its dependence on Unisys as well as its exposure to Y2K. With the company addressing both these concerns, in all probability, the worst could be over. Analysts too are taking a re–look at the stock.

Equitymaster requests your view! Post a comment on "Tata Infotech ties up with US partner". Click here!


More Views on News

Sorry! There are no related views on news for this company/sector.

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

I Recommended this Stock over Page Industries because it's Relevant to Doubling Your Income (Profit Hunter)

Sep 7, 2020

Things are not often what they seem in the market and how you can take advantage of this.

The NASDAQ Whale Could Harm Your Portfolio (Fast Profits Daily)

Sep 7, 2020

The discovery of Softbank pushing up prices on the NASDAQ will cause volatility in the market. Stay alert!

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.


Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms


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