Rolta has for 1QFY02 clocked a QoQ growth (compared to 4QFY01) of 5% in revenues. The growth in net profit is 18%. Considering Rolta's size the growth in topline is slightly low compared to the figures posted by others in the IT industry. However, Rolta's business model is slightly different from the run of the mill software companies as its core areas include CAD/CAM industry and ISP services.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
Diluted number of shares
Diluted Earnings per share*
On a YoY basis the company has clocked a revenue growth of 36% and the rise in net profits is 44%.
The operating margins for the company are one of the best in the industry at 53.5%. However this figure has come down from an astronomical 65.9% in 4QFY01.
The high operating margins could be due to the fact that Rolta's staff costs are just 4% of the revenues, which could be perhaps the lowest in the IT industry.
At the current market price of Rs 74, the stock is trading at a P/E multiple of 3.8 times its 1QFY01 annualised earnings.
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