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MICROTECH
MTCH:IN
10.0
2.29
129.9
229.50/110.10
1,807
2,809
Micro Technologies (India) Limited (MTIL) is an information technology (IT) based company which
primarily deals into security solutions. It provides security solutions for vehicles, homes, mobiles,
premises and other verticals. The company has two subsidiaries and operates in the markets of
South Africa, Japan, Israel, Australia and Middle East countries along with India.
KEY HIGHLIGHTS
Operates in niche security market
MTIL is one of the few companies providing IT based security solutions. It provides messaging and
anti-theft security systems for security of vehicles, homes, premises and other assets. Its solutions
are used in monitoring cyber activities, energy consumption, employees- who are constantly on the
move, fleet for transport companies and other verticals. The company offers disaster management
systems, wi-fi security systems and mobile tracking systems. Along with these security solutions
MTIL provides group and emergency messaging facilities, attendance and visitors management
systems and individual identity solutions. In FY10, the companys security solution business
contributed ~73% of total revenues, messaging ~19% and IT products ~8%.
New launches; widening product portfolio
In FY10, MTIL launched water management tool for rural India. This tool enables farmers to
manage motor pumps with the help of mobile phones. The company also launched unique identity
solution and uninterrupted power supply (UPS) systems during the year. Unique identity solution
was launched for individual security and identity management while UPS systems were launched
primarily for household segment.
13.9
68.8
45,729
1.2
Mar-08
1,880.9
41.1
519.7
27.6
0.3
47.4
4.4
1.1
29.7
29.8
3.7
Mar-09
2,899.5
39.2
720.9
24.9
0.3
65.6
1.1
0.3
25.1
28.5
1.2
Mar-10
4,592.5
36.8
899.8
19.6
0.4
70.1
1.9
0.4
27.1
25.1
1.6
KEY RISKS
FII
2%
Promoter
34%
-33
-16
-35
100
80
60
40
20
V olumes (RHS )
MICR OTEC H
F eb-11
J an-11
D ec -10
O c t-10
Nov-10
S ep-10
Aug-10
Mar-11
12-m
J ul-10
Note:
1) YTD returns are since Apr 01, 2010 to Apr 11, 2011.
2) 1-m, 3-m and 12-m returns are up to Apr 11, 2011.
3-m
J un-10
NIFTY
1-m
Apr-10
MICROTECH
YTD
('000)
800
700
600
500
400
300
200
100
0
May-10
Returns (%)
NIFTY
COMPETITIVE POSITION
Peer Comparison
R evenue (R s m n)
E B ITD A m a rg ins (% )
P AT (R s m n)
P AT m a rg ins (% )
G ea ring (x)
E P S (R s /s ha re)
P E (x)
P /B V (x)
R oC E (% )
R oE (% )
E V/E B ITD A (x)
Mic ro
Tec hnolog ies
(India) L td
Mar-10
4,592.5
36.8
899.8
19.6
0.4
70.1
1.9
0.4
27.1
25.1
1.6
NEL C O L td
S ep-10
1,608.2
-3.2
223.9
13.9
1.6
9.8
8.4
4.1
35.1
60.5
n.m .
FINANCIAL PROFILE
Revenue
Top-line grew significantly by 58.4% on y-o-y basis reaching ~Rs.4.6 bn in FY10.
During the year domestic revenues grew by ~40% and exports grew by ~31%.
Operating margin declined to 36.8% in FY10 compared to 39.2% in FY09 primarily on
account of increase in profession charges and other administrative costs as a
percentage of total revenues. As a result of better operating profits, PAT grew from
Rs.720.9 mn in FY09 to Rs.899.8 mn in FY10, a growth of ~25%.
Rs mil li on
Rs mil li on
PAT ma rgi ns
Mar-08
Mar-09
Mar-10
1,880.9
2,899.5
4,592.5
41.1
39.2
36.8
519.7
720.9
899.8
Per cent
27.6
24.9
19.6
76.4
54.1
58.4
EBITDA growth
Per cent
82.0
46.8
48.7
PAT growth
Per cent
68.5
38.7
24.8
Gea ri ng
Ti mes
0.3
0.3
0.4
RoCE
Per cent
29.7
25.1
27.1
RoE
Per cent
29.8
28.5
25.1
INDUSTRY PROFILE
IT services
Indian IT services revenues are estimated to be around $34 billion in 2009-10, registering a CAGR of 20 per cent from 2004-05 to 2009-10. During the same period, IT
services exports, which accounted for 80 per cent of the revenues, are estimated to have grown at a CAGR of 22 per cent to $27 billion in 2009-10. The industry is highly
dependent on the US and UK markets, which contribute to around 75 per cent of export revenues. With IT services deriving a large portion of its revenues from exports, the
sector`s profitability is highly correlated to foreign exchange movements. An appreciating rupee is thus a key risk factor. Also, as human resource is the main input in IT
services, issues related to non-availability of skilled labor, attrition and wage inflation would also impact Indian IT players.
Mar-08
1,880.8
1,880.9
Mar-09
2,899.3
2,899.5
Mar-10
4,591.8
4,592.5
EBITDA
EBITDA Margin
773.8
41.1
1,136.1
39.2
1,689.0
36.8
Depreciation
Interest
Other Income
140.7
40.1
4.6
270.2
33.9
0.3
394.2
199.0
13.5
PBT
PAT
599.2
519.7
818.8
720.9
1,117.0
899.8
PAT Margin
27.6
24.9
19.6
11.0
11.0
12.8
47.4
65.6
70.1
Mar-08
597.7
-68.0
140.7
-503.2
Mar-09
832.3
-88.7
270.2
-682.8
Mar-10
1,109.2
-200.1
394.2
-565.6
167.2
-985.1
-4.4
331.0
-581.3
3.9
737.7
-1,215.2
-170.5
Cash flow
(Rs million )
Pre-tax profit
Total tax paid
Depreciation
Change in working capital
Balance sheet
(Rs million )
Equity share capital
Reserves and surplus
Tangible net worth
Deferred tax liablity:|asset|
Long-term debt
Short-term-debt
Total debt
Current liabilities
Total provisions
Total liabilities
Gross block
Net fixed assets
Investments
Current assets
Receivables
Inventories
Cash
Total assets
Mar-08
109.7
1,939.1
2,048.7
16.2
613.2
89.2
702.4
151.1
42.2
2,960.6
1,601.8
1,563.2
4.3
1,393.1
719.6
393.5
114.1
2,960.6
Mar-09
150.0
2,859.6
3,009.6
25.5
617.1
370.6
987.6
372.4
107.1
4,502.2
2,178.6
1,874.3
0.5
2,627.4
1,298.1
590.3
379.4
4,502.2
Mar-10
128.4
4,027.6
4,156.0
42.6
613.2
866.0
1,479.2
590.0
205.5
6,473.3
2,945.4
2,695.3
171.0
3,607.0
1,728.8
833.3
477.3
6,473.3
Mar-08
76.4
82.0
68.5
Mar-09
54.1
46.8
38.7
Mar-10
58.4
48.7
24.8
EBITDA margins(%)
Tax rate (%)
PAT margins (%)
41.1
11.3
27.6
39.2
10.8
24.9
36.8
17.9
19.6
4.2
2.0
186.8
29.8
29.7
2.7
1.7
273.7
28.5
25.1
4.2
3.0
323.8
25.1
27.1
0.3
19.3
0.9
0.3
33.5
0.9
0.4
8.5
0.9
1.7
5.0
1.5
3.1
1.8
2.2
270
331
287
Ratio
-989.5
36.3
608.7
-25.6
78.0
-577.4
89.1
285.2
-22.4
159.7
-1,385.7
396.9
491.6
-44.6
-98.0
697.4
-124.9
239.0
511.6
265.2
114.1
745.9
97.9
379.4
114.1
379.4
477.3
Closing cash
Gearing (x)
Interest coverage (x)
Debt/EBITDA (x)
QUARTERLY RESULTS
Profit and loss account
(Rs million)
No of Months
Revenue
Dec-10
% of Rev
Dec-09
% of Rev
Sep-10
% of Rev
Dec-10
% of Rev
Dec-09
% of Rev
1,337.2
100.0
1,190.2
100.0
1,410.5
100.0
4,048.4
100.0
3,056.5
100.0
EBITDA
482.6
36.1
404.1
33.9
482.1
34.2
1,400.1
34.6
1,073.1
35.1
Intere s t
50.1
3.7
25.3
2.1
35.7
2.5
112.7
2.8
57.8
1.9
Depre ci a ti on
144.0
10.8
103.2
8.7
133.6
9.5
399.2
9.9
287.7
9.4
PBT
288.5
21.6
275.6
23.2
312.8
22.2
888.2
21.9
727.6
23.8
PAT
231.0
17.3
228.8
19.2
250.4
17.8
711.2
17.6
620.1
20.3
80
60
40
Per c ent
80
70
60
50
40
30
20
10
0
250
200
150
100
50
20
Sep 2010
31.0
5.5
63.6
Dec 2010
34.2
2.2
0.2
63.4
S ep-10
J un-10
Mar-10
D ec -09
S ep-09
J un-09
OPM
J un-10
Mar-10
D ec -09
S ep-09
J un-09
Mar-09
D ec -08
S ep-08
Mar-08
Dec-10
Sep-10
Jun-10
Mar-10
Dec-09
Per c ent
45
40
35
30
25
20
15
10
5
0
Sep-09
Mar-09
Dec-08
Sep-08
Jun-08
Mar-08
Jun-09
EPS
Rs/share
20
18
16
14
12
10
8
6
4
2
0
Mar-09
Net Profit
J un-08
D ec -08
J un-08
D ec -10
S ep-10
J un-10
Mar-10
D ec -09
S ep-09
J un-09
Mar-09
D ec -08
S ep-08
J un-08
Sales
S ep-08
0
0
D ec -10
100
Rs mn
300
D ec -10
Per c ent
120
S ep-10
Rs mn
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
NPM
Board of Directors
Director Name
Paul Jerome Colema n(Jr.) (Dr.)
Designation
Independent Director
Non-Executive Di rector
Non-Executive Di rector
Non-Executive Di rector
Promoter-Di rector, Executive Di rector
Executi ve Cha irman & Mana gi ng
Di rector, Promoter-Di rector
Independent Director
Executi ve Di rector
Additional Disclosure
This report has been sponsored by NSE - Investor Protection Fund Trust (NSEIPFT).
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