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.
Polaris: Out of gas - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Apr 23, 2001

    Polaris: Out of gas

    Polaris has clocked a meek sequential (QoQ) growth of 6.3% in revenues and a rise of 9% in net profits. On a YoY basis the growth in topline is 68% for the 4QFY01 and the bottomline growth for the period is 60%. Considering the comparatively smaller revenue base of Polaris, the company's performance is lacklusture.

    For the further quarter the company added six new clients. The notables ones included GE Power Systems and Panasonic USA. Both these clients are for a projects in the area of Oracle Financials.The company's active client base now stands at 76. Polaris has a large chunk of its revenues coming for areas like implementation of Oracle Financials and ERP. This could a probable reason for the company having lower operating margins. Also these areas have lower entry barriers therefore, the stiff competition could be another reason for pressure on the margins.

    The company added 115 employees during the 4QFY01. This is an increase of more than 100% compared to recruitment in 3QFY01. Therefore, the company seems to have a clear business visibility considering the fact the quite a few companies have cut down on their hiring in the fourth quarter due to the US economic downturn.

    (Rs m) 3QFY01 4QFY01 Change FY00 FY01 Change
    Sales 730 776 6.3% 1,461 2,656 81.7%
    Other Income 10 8 -18.3% 142 42 -70.7%
    Expenditure 550 584 6.3% 1,151 2,002 73.9%
    Operating Profit (EBDIT) 180 192 6.4% 310 653 110.7%
    Operating Profit Margin (%) 24.7% 24.7%   21.2% 24.6%  
    Interest - 0   3 0 -89.2%
    Depreciation 19 20 7.2% 30 68 128.0%
    Profit before Tax 171 179 4.9% 419 626 49.5%
    Tax 3 (3) -213.0% 47 6 -88.0%
    Profit after Tax/(Loss) 168 183 8.7% 372 621 66.8%
    Net profit margin (%) 23.0% 23.5%   25.5% 23.4%  
    Diluted number of shares 34.2 34.2   34.2 34.2  
    Diluted Earnings per share* 19.7 21.4 8.5% 10.9 18.2 66.8%
    *(annualised)            
    P/E (x)   16     19  

    Polaris had opened the year with a strong 12% sequential growth in revenues for the first quarter for FY01. The figure shot up to 21% in the second quarter. But then it started to dip and in the third quarter the QoQ growth in revenues was just 16%.

    For the year FY01 the company has posted a growth of 82% in revenues and 60% in operating margins. The company managed to improve its operating margins by 270 basis points over the year. The expenses for FY01 includes Rs 19.5 m as amortisation of ESOP (employee stock options plan). Excluding this, the operating margins would have gone up by 340 basis points. However, even then Polaris' operating margins are way below the industry averages.

    The company has declared a bonus of one for two (one share for every two held). At a current market price or Rs 342, the stock is trading at a P/E multiple of 19 times its FY01 earnings.

     

     

    Equitymaster requests your view! Post a comment on "Polaris: Out of gas". 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

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Profitable Investment in the History of the World(Vivek Kaul's Diary)

    Aug 8, 2017

    'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'

    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.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

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

    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

    POLARIS CONSULTING SHARE PRICE


    Aug 21, 2017 (Close)

    TRACK POLARIS CONSULTING

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

    MORE ON POLARIS CONSULTING

    POLARIS CONSULTING - NIIT TECHNOLOGIES COMPARISON

    Compare Company With Charts

    COMPARE POLARIS CONSULTING WITH

    MARKET STATS