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.
Aptech FY01: Lacklusture performance - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Feb 28, 2001

    Aptech FY01: Lacklusture performance

    Aptech has registered a significant 32% QoQ dip in topline for 4QFY01. The net profit figure has also gone down by a similar amount. The only positive note in the result was a 100 basis point improvement in margins. 92% of its revenues came from the education business while the rest was from software & consultancy. The contribution of software and consultancy services to the revenues is down from 12% in 3QFY01 to 8% in 4QFY01.

    However, on a YoY basis the company showed a small increase of about 15% in topline and a marginal 3% in the bottomline. Operating margins however, came down by more than 500 basis points.

    (Rs m) 4QFY00 4QFY01 Change FY00 FY01 Change
    Net Sales 887 1,024 15.4% 3,665 4,663 27.2%
    Other income 1 58 5146.4% 57 91 59.2%
    Expenses 629 787 25.0% 2,868 3,461 20.7%
    Operating profit 258 237 -8.1% 797 1,202 50.8%
    Operating margin 29.1% 23.2%   21.7% 25.8%  
    Depriciation 71 89 25.2% 193 336 74.1%
    Interest (7) -   55 -  
    Profit before tax 195 206 5.7% 606 957 57.9%
    Tax 29 35 20.7% 95 142 49.2%
    Profit after tax 166 171 3.0% 511 815 59.5%
    Net profit margin 18.7% 16.7%   13.9% 17.5%  
    FD No of shares 30.3 30.3   30.3 30.3  
    FDEPS* 22 23   17 27  
    P/E 10 10   13 8  

    The FY01 results look much better. Though the topline growth is a small 27%, the bottomline has grown by 59.5%. The performance is marked by a 400 basis point improvement in operating margins. This is mainly due to better performance in the 2QFY01 when the company recorded operating margins in the range of 37%.

    The company derived 15% of revenues from the software and consultancy business in FY01. Remaining part of the revenues came from its education and training businesses. As a result operating margins of the company are comparatively lower than its peers in the industry.

    (News of the de-merger of the software division declared on the 21st of February.)

    Aptech has announced its intention of separating its software business. The company is looking a the following options:

    • Merger of Hexaware Technologies into Aptech and operating the two businesses of Training & Education and Software & Consulting as independent Strategic Business Units.
    • Merger of Hexaware Technologies into Aptech in a manner that two independent listed companies are created – one for the Training & Education business and the other for the Software & Consulting business.
    • Aptech can consider any other option that is in the best interest of the businesses of the company. This might include merger of Aptech’s software business into Hexaware, which is an unlisted company. Fearing this the markets have given a negative reaction to the initial announcement of de-merger.

    At the current market price of Rs 221, the stock is trading a P/E multiple of 8 times it’s FY01 earnings. For the investor the watchword is caution and to wait and watch till the company comes out clear with what it is planning to do.



    Equitymaster requests your view! Post a comment on "Aptech FY01: Lacklusture performance". 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

    This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process)(The 5 Minute Wrapup)

    Aug 17, 2017

    A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    It's the Best Time to Buy IT Stocks(Daily Profit Hunter)

    Aug 16, 2017

    The IT Sector could be in an uptrend till February 2019. Are you prepared to ride the trend?

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    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


    Aug 23, 2017 (Close)


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



    Detailed Quarterly Results With Charts