Rolta (India) Ltd - Rs.80.80

Established in 1982, Rolta (India) Ltd. (Rolta) was promoted by and chaired by Shri K. K. Singh, a technocrat and businessman with over two decades of experience in business. From being a mere data processing centre Rolta is today an Indian multinational IT company well equipped to provide knowledge-based Software/IT, Engineering and Mapping solutions & services to customers across the world. Rolta has been consistently ranked as India's no.1 CAD/CAM/GIS solutions provider and is considered amongst the world's top AM/FM/GIS & Photogrammetry services providers. It has emerged as the leading provider of Plant Design Automation Solutions in India with over 80% market share and a preferred partner for providing Plant Engineering Design services globally to international giants like The Dow Chemical Company of USA and others - a relationship that only a few select companies enjoy worldwide. The company also offers value added solutions and services for Enterprise Application Integration (EAI) that includes integrating & web-enabled Engineering & Business applications, Smart Cards, e-Security and Data-Warehousing/Mining.

Rolta has strong business partnerships with international technology leaders like Intergraph, Z/I Imaging, PTC, IBM, Microsoft, Oracle among others and boasts of world wide presence with over 3000 professionals and state-of-art infrastructure including global connectivity and software development centers in India & USA. It has subsidiaries in USA, Canada, UK, Germany, Netherlands, Saudi Arabia, Middle East and a network of over 15 full-fledged offices in India. The company’s clients include Saudi Telecom, British Telecom, National Grid, Telus, Bechtel, Aramco, Philips Medical, HSBC Master Card, Bear Stearns & Co, Defence Ministry, ONGC, ICICI, L&T, EIL, BHEL, BSNL, Tata Chemicals etc.

The company has also established a Joint Venture with Stone & Webster Inc. of USA, one of the world's foremost engineering companies for addressing large projects in power, petrochemicals, refineries etc. It is one of the top-three Premier Global Service Partners of Computer Associates Worldwide for IT services in Enterprise Management, Security and Software Development & Testing. Ranked by Forbes Global amongst the 200 Best Companies in the world with Sales upto US $ 1 billion for three years in a row in 2001, 2002 & 2003, Rolta is one of the only 18 such companies worldwide. Deloitte & Touche has recently ranked the company amongst the 500 fastest growing technology companies in the Asia-Pacific region. Recently, it demonstrated its high level of competence in information security management with its e-Solutions Strategic Business Group awarded the BS7799 accreditation- the ultimate benchmark for information security. The Software Development Division of Rolta has been assessed at SEI CMM Level 5 for software development and testing by KPMG.

Moreover, the company is on a expansion spree and is building two new facilities in Mumbai. It is adding around 400 professional per month and plans to take its employee strength to over 10,000 form current 3,500 in 2~3 years. Rolta is also looking to acquire small overseas companies in niche areas and could consider making an ADR/GDR issue to raise funds for acquisition. For six months ending Dec 2004 it posted impressive numbers with total revenue increasing 50% to 155 cr. and NP was 51 cr. up 65%. It has huge reserves of 450 cr. on current equity of Rs.63 cr. and debt equity ratio stands at 0.47. Though there are concerns with respect to management quality, accounting policies, tax evasion etc Rolta can perform well going forward and end FY05 with NP of Rs.95 cr. on turonver of Rs.330 cr. which works out to an EPS of Rs.15. Investors are advised to buy at current levels and can expect 50% appreciation in 15 months time.