Industry profile: India is the world’s largest sourcing destination for the information technology (IT) industry. IT and ITeS have significantly impacted India’s overall growth and development. India is home to some of the world’s top IT companies. Some of the leading IT firms in India are TCS, Tech Mahindra Limited, Infosys Technologies Limited, Patni Computer Systems Limited, Wipro Technologies Limited, Oracle Financial (I-Flex Solutions Ltd), Mahindra Satyam Computer Services Limited, Mphasis, HCL Technologies Limited, and Larsen & Toubro Infotech Limited. The industry employs about 10 million workforces. More importantly, the industry has led the country’s economic transformation and altered India’s perception of the global economy. The IT industry has also created significant demand in the Indian education sector, especially in engineering and computer science. The Indian IT and ITeS industry is divided into four major segments – IT services, Business Process Management (BPM), software products and engineering services, and hardware.
India’s IT industry amounts to 12.3 percent of the global market due to exports. Indian IT companies have, in recent years, started expanding their global footprint through the global delivery model to service their clients’ needs seamlessly. Industry analysts expect the top IT firms to grow between 23% and 27% in 2012 based on an increased number of discretionary projects, improved pricing, and robust business volumes. The Indian IT sector is expected to grow at a 12-14 percent rate for FY2016-17 in constant currency terms. The industry is expected to triple its annual revenue to reach US$ 350 billion by FY 2025.
Company Profile: The company is a subsidiary of L&t and provides ER&D services to manufacturing technology and process engineering companies. It is a PURE PLAY ER&D company, which means they provide manufacturing technology services to process engineering companies to help them develop and build the infrastructure required for delivering products. 80% of revenue is coming from North America and Europe. The company operates in five segments ( Transportations, Telecom and high tech, Process industry and Medical devices Industrial products out of which Industrial products, medical devices, process industry contribute 50% of revenue. Its customers include 43 out of 100 top ER&D companies.
Shareholding pattern: BSE Data
Financials and ratios : [table id=112 /]
Future prospectus: A company operating in the specialized segment is a great opportunity. Specifically when engineering. Niche IT is something which will keep performing better. However, the company is new, so even if the margins are good, the business has sufficient risk. Engineering and Research are growth businesses.
