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Journalism of Courage
MAY 29: quot;The growth story would definitely come from software,going forward,quot; said Manish Karwa, analyst at Pranav Securities. quot;Some decision is likely this year on how it would beunlocking value from the software subsidiaries,quot; he added.
Mahindra Information Technology Services Ltd MITS, Mamp;M8217;SFully owned subsidiary, is the holding firm for the group8217;s information technology business. Earlier this year, the firm8217;s managing director Anand Mahindra said Mamp;M will consider listing its five software subsidiaries.
A Reuters poll of 15 brokerages in March forecast a 15 per cent rise in Mamp;M8217;s 1999/2000 April-March net profit to Rs 2.63 billion 59 million, while its sales were seen rising 8.02 per cent to Rs 37.41 billion.
Analysts spoke to on Monday forecast its net profitto rise between 10 and 33 per cent and sales to grow between five and 12 per cent. They said the variance in the estimated bottomline figures was on account of different assumptions of non-operational income.
quot;I anticipate a 45 to 50 percent jump in non-operationalincome,quot; said Pranav Securities8217; Karwa.
The results are due on Tuesday.
Analysts said Mamp;M8217;S Utility vehicles operations faredbetter than tractors, which was hit by a month-long strike at its main plant in suburban Bombay.
But tight control over costs helped in improving operatingmargins by over a percentage point, they said.
Mamp;M Shares ended Monday at 214 Rupees, a third of theirmid-February peak of 664.75 Rupees.
