Amex Information Technology - Rs.25.00

Incorporated in 1991, Amex Information Technology Ltd (Amex) is a niche player specializing in Business Process Outsourcing (BPO) services in various sectors. It’s a premier technology based firm, offering comprehensive and professional IT services also. Amex provides total solutions to customers in India and abroad, based on its expertise in vertical markets like telecom, finance, banking, insurance and manufacturing. It possesses excellence in terms of skills in systems engineering and high level project management. It has fully operational offices of its group companies in UK, Sweden and UAE. It has also formed a company by the name Media Information Technology Ltd in UK and Raydox Technology FZ LLC in UAE to cater the international market. It has a reputed clientele which includes big corporates like LIC, BSE, Govt of Maharashtra, Siemens, Novartis, HCL, RBI, Thomas Cook. IPCA, BPCL, Colgate, NIC etc. in India whereas Com Metodi, Team Systems, UKCRS, Old Bailey, Saicom, ZF, HEDS etc in the international market. Basically AMEX’s operation is segmented in 3 divisions’ viz. BPO, Biometric & IT services :

BPO: In BPO, the company focuses on 3 verticals. They are Basic-Fund Accounting, KPO, E-Accounting & E-publishing. Through these SBUs it offers exhaustive services for fund accounting, accounts write-ups, compilation of financial statements, payroll processing, tax services and returns, data management system like form processing, data conversion, data digitization, digital library etc. For this, it has also developed a product by the name ‘Optidocs’ which is well accepted in the market. It also has 500 seat BPO centre in Chennai to cater to its international clients

Biometric: Under this division, AMEX has developed software solutions based on biometric technology. It deals in finger print scanners, finger print standalone system with software for time attendance, access control, desktop / network logon etc. The company has developed desktop & network log on authentication software called ‘Tutis Authentication System’, supporting multiple fingerprint biometric sensors manufactured in the world. It is also an authorized reseller of biometric hardware products of SecuGen Corp, USA and Cross Match Technology USA. Interestingly, AMEX has developed biometric authentication on the internet, which can be adopted in many Internet based applications like online banking, insurance and credit card payments or for any website which requires a very very secured login. It also provides Fingerprint Door Locks and users Time and Attendance System for SOHO Segment.

IT Services: Its entire ITES operations are conducted by its subsidiary, Vishal Information Technologies Limited which is getting merged with it shortly. It has access to highly skilled and experienced IT professionals who can deliver solutions on well-known industries and on emerging platforms & technologies. The company also has expertise in telephony and networking technologies. It has developed applications and software solutions based on DILOGIC cards using the C, API on NT and UNIX as well as PARITY components and VOS. Components for voice recording over telephone lines for transcription services including the delivery of voice data to appropriate transcribers, customized IVR, voice-recording systems, internet fax servers, fax demand components, telebanking and other customized telephony solutions are also developed by AMEX.

For the nine months ending 31 Dec 2006, its Sales grew by 23% to Rs.32 cr. whereas its NP increased by 55% to Rs.8.55 cr. on a consolidated basis. Considering its track record, it may end up FY06 with total revenue of Rs.45 cr. and NP of Rs.11.50 cr. This works out to a consolidate EPS of Rs.5 on its consolidated equity of around Rs.21 cr. For FY07, it may report topline of Rs.55 cr. and NP of Rs.12.50 cr. i.e. an EPS of Rs.6. For FY06, the company is expected to declare 10% dividend on the back of a robust performance. Investors are advised to buy at current levels as the scrip can appreciate 50% in 12~15 months.