Result Update: Infotech Enterprises.
Infotech's results were a mixed bag, while revenues were higher than expected, EBIDTA margins once again disappointed.Consequently, PAT for 2QFY11 was marginally lower and EMI volumes were up by 13% and UTG reported a 6% organic growth, which is encouraging.
Margins were flat (organically) QoQ, which was disappointing in light of the severe fall witnessed in 1Q. 刼 The company had to resort to further increments for scarce resources. This validates concerns about mid sized companies facing pressures on salaries due to strong hiring by larger peers in a buoyant sector.
Overall, earnings estimates for FY11 is expected to be Rs.13.2 v/s Rs.14.1 earlier and FY12 EPS estimates to be Rs.16.8. Hence long term investors can wait for substantial declines before entering this stock.
Infotech's results were a mixed bag, while revenues were higher than expected, EBIDTA margins once again disappointed.Consequently, PAT for 2QFY11 was marginally lower and EMI volumes were up by 13% and UTG reported a 6% organic growth, which is encouraging.
Margins were flat (organically) QoQ, which was disappointing in light of the severe fall witnessed in 1Q. 刼 The company had to resort to further increments for scarce resources. This validates concerns about mid sized companies facing pressures on salaries due to strong hiring by larger peers in a buoyant sector.
Overall, earnings estimates for FY11 is expected to be Rs.13.2 v/s Rs.14.1 earlier and FY12 EPS estimates to be Rs.16.8. Hence long term investors can wait for substantial declines before entering this stock.
