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.
Silverline's net surges by 90% in 2QFY00 - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Jul 18, 2000

    Silverline's net surges by 90% in 2QFY00

    Silverline Technologies Ltd. (STL) has shown a YoY 91% jump in net profits in 2QFY00 to Rs 278 m. However quarter over quarter the profits increased by 7%. The contribution from e-business to total revenues increased to 33% in the 2QFY00 compared to 21% in the corresponding quarter in the previous year. This has also led to improvement in its profit margins to 27.3%.

    The company's top two customers First Data and SCI contributes 30% to its total revenues, which has been reduced from 46% in FY99. During the six months period Jan-June 2000, the company has added 27 new customers.

    (Rs m) 1QFY00 2QFY00 Change
    Sales 1,369 1,452 6.1%
    Other Income (13) (16) 30.5%
    Expenditure 1,001 1,056 5.5%
    Operating Profit (EBDIT) 368 396 7.6%
    Operating Profit Margin (%) 26.9% 27.3%  
    Depreciation 41 53 27.6%
    Profit before Tax 314 327 4.0%
    Tax 54 49 -10.5%
    Profit after Tax/(Loss) 260 278 7.1%
    Net profit margin (%) 19.0% 19.2%  
    No. of Shares (eoy) (m) 64.9 64.9  
    Diluted number of shares 64.9 64.9  
    Diluted Earnings per share* 16.0 17.2  

    STL sees phenomenal growth opportunity in its e-business and CRM (Customer Relationship Management). Since billing rate of the company in e-business are high (both offshore and onsite), it focuses on enhancing processes and methodologies in this area. It targets to achieve revenue growth of 40-45% which will be achieved through its focus on emerging area of e-business.

    At the current market price of Rs 438, STL is trading at a PER of 26 times its 2QFY00 annualised earnings. The company's profit margins are comparatively less compared to its peers. The lower valuations of the company are due to comparatively low value added services provided by its. As the company moves up its value chain, it will be reflected it its market valuations.



    Equitymaster requests your view! Post a comment on "Silverline's net surges by 90% in 2QFY00". 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?

    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


    Apr 19, 2012 (Close)


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