Visit http://indiaer.blogspot.com/ for complete details �� ��
Mphasis (MBFL.BO, Buy, Rs602.65)
Allaying concerns over HP – Mphasis clarified that HP allows it to operate completely
independently as a separate company. HP only requires Mphasis to have the same
accounting year and the same statutory auditors. Its strategy for the next three years,
financial targets, and top management compensation are solely determined by its
board. HP’s captive unit in India is mostly not in the same space as HP. It looks at
different verticals like retail, package implementation, data warehousing. Its strength is
in telecom operations and applications.
Cash utilization – With $300 mn-plus cash on the balance sheet, management
continues to look for suitable acquisitions in the mid-size space ($100 mn-$200 mn) in
chosen areas of focus like BFSI under verticals and some niche areas under horizontals.
After the acquisitions are done, it may consider doing share buybacks, but that is still
6-12 months away.
Focus for the next $1bn revenues – Mphasis has sales presence across 16 countries
but 88% of revenues come from three countries. Hence, they will look to reduce sales
presence from 16 countries to 8, but would be doubling sales efforts in these eight
countries in order to migrate to a differentiated business model among markets.
No comments:
Post a Comment