ITC Infotech India Ltd Company Overview ITC InfoTech, a global IT Services company, is a 100% subsidiary of the USD 3.5 billion Indian conglomerate ITC Ltd. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, and among India's Most Valuable Companies by Business Today. ITC's wholly owned Information Technology subsidiary, ITC InfoTech, is aggressively pursuing emerging opportunities in providing end-to-end IT solutions and services, including business process outsourcing. ITC InfoTech has established itself as a key player in the off shoring arena, growing at a compounded annual growth rate (CAGR) of around 85%, outpacing most of its industry counterparts. ITC InfoTech enjoys the rare advantage of having a practitioner’s expertise with astute business proficiency. Profiled by Forrester Research as a Leading Tier 2 vendor, ITC InfoTech combines its experience across various industry sectors with world class capabilities in technology to deliver ‘business-friendly solutions’ in four verticals: • • • •
Banking, Financial Services & Insurance (BFSI) Consumer Packaged Goods (CPG) & Retail Manufacturing Travel, Hospitality & Transportation
Based in the picturesque ITC InfoTech Park that sprawls across 35 acres in the heart of Bangalore city, and through its wholly owned subsidiaries in the UK and the US, ITC InfoTech services Fortune-listed clients across North America and Europe. A sharp domain focus ensures that IT and ITES delivery always places business needs ahead of technology. The technology delivery teams leverage the domain knowledge to engineer business solutions, using CMM Level 5 processes for offshore service delivery. The company offers application development and management services, ITC Infotech also offers enterprise services in the area of ERP, CRM, Infrastructure and IT Consulting. Source – Company Website http://www.itcinfotech.com/companyoverview.aspx
A Brief about Indian Conglomerate – ITC Ltd ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 15 billion and a turnover of over US $ 4.75 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC also ranks among India's top 10 `Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Greeting Cards, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting Cards.
Offices of ITC Infotech Across Different Continents North America
USA UK, Denmark, Spain, Finland Norway Czech Republic India Malaysia
Org structure and Key people CXO, Vertical heads, Country Heads (need to define the heads of the other countries as well ) Chairman Sanjiv Puri Rakesh Batra
Anup Singh Managing Director and CEO CFO
TOP Clients The company has operations in the Asia Pacific rim, Europe, and the US.
Clients of ITC Infotech in the US -
Some of the major clients of the company in the USA are: • • • • • •
DHL Parametric Technologies Corp Viacom Steelcase Microsoft AOL
Clients in Europe – IS present throught the UK Subsidary The clientele includes –Abbey , ClientLogic(now called SITEL – is US based) , BAT. Most recent one is the Danske Bank of Denmark. Under this multi-year contract, ITC Infotech will develop and support Danske Bank’s systems across back office and other banking applications. Clients in UK The company serves major players across different sectors in the UK, such as Abbey National Group and Group Santander. It has set up an offshore development centre (ODC) at Bangalore in India dedicated to the Abbey National Group.The company has been providing software development, maintenance, testing and support services to this group since the last 18 months. Source – http://www.google.co.in/search?hl=en&q=ITC+Infotech+&meta= ( there is a pdf file with a name of India infotech India limited– open this for details )
Top Competitors ( India ) IBM - with market cap of 140.9 B ( which comes as the biggest threat) Satyam Computers Patni computers
Company Strategy As per the press release regarding the company’s growth strategy Mr Khem Aithani, Vice-President, Key Accounts, ITC Infotech, India, said: "In addition to growing organically in the business-vertical mandate that we have set for ourselves, we are also looking at partnering with mid-size and local players that bring complementary culture and vertical strengths." The company has entered into an alliance with AK-Global Solutions Inc, a business consultant, providing strategic integrated solutions to better manage talent pool,
technology and expertise. It also has a JV with the ClientLogic ( now called SITEL) in the BFO space. Source http://www.thehindubusinessline.com/2006/05/23/stories/2006052303140900.h tm
Financials ITC Ltd BSE: 500875
NSE: ITC
ISIN: INE154A01025
Industry : Cigarettes Key Financial Ratios
------------------- in Rs. Cr. -------------------
Mar '03
Mar '04 Mar '05 Mar '06 Mar '07
Profitability Ratios Adjusted Net Profit Margin(%)
12.44
13.48
13.76
13.78
13.84
Cash Profit Margin(%)
14.59
15.53
16.11
15.83
15.70
Gross Profit Margin(%)
20.80
21.67
22.37
21.92
21.99
Operating Profit Margin(%)
21.17
21.96
22.75
22.05
22.07
Profit Before Interest And Tax Margin(%)
19.02
19.92
20.41
20.00
20.21
Return On Capital Employed(%)
41.69
39.58
37.44
37.73
40.02
Return On Net Worth(%)
28.41
27.34
25.91
26.55
27.86
53.35
51.28
34.24
29.59
32.32
Fixed Assets Turnover Ratio
2.82
2.66
2.58
2.74
2.95
Inventory Turnover Ratio
9.06
8.48
7.55
6.99
6.51
--
--
--
--
--
2.17
1.97
1.82
1.87
1.97
Current Ratio
1.24
1.06
0.97
1.15
1.35
Debt Equity Ratio
0.04
0.02
0.03
0.02
0.02
Long Term Debt Equity Ratio
0.03
0.01
0.01
0.01
0.01
52.09
68.85
53.63
153.80
245.81
Management Efficiency Ratios Debtors Turnover Ratio
Loans Turnover Ratio Total Assets Turnover Ratio Liquidity And Solvency Ratios
Debt Coverage Ratios Interest Cover Source – indiaearnings ITC Infotech India , USA
Source : http://www.google.co.in/search?hl=en&q=latest+financials+of+ITC+Infotech+india&meta=
Competitor comparison ITC Infotech is USD 64 million company with a headcount of over 4,200 employees. The tier-II firm competes with the likes of the global service providers such as HP, IBM and Accenture and also tier-I Indian players for enterprise system integration solutions, infrastructure and testing services projects. Some of its clients include British American Tobacco, Abbey National Bank, Finnair, DHL, PTC and Unilever. Around 5% of the company’s revenues come from ITC.
The company has a joint venture with Client Logic, which provides technical support and voiceBPO services to clients worldwide. ITC Infotech has offices across the US, UK, Europe and the Asia-Pacific, and delivery footprint across 42 countries.
IBM Net Profit Margin Operating Margin EBITD Margin Return on Average Assets Return on Average Equity Employees
Annual (2006) 10.30% 13.05% 18.50% 9.01% 30.57% HP Net Profit Margin Operating Margin EBITD Margin Return on Average Assets Return on Average Equity Employees
Source – Google finance
Annual (2006) 6.76% 7.16% 10.38% 7.78% 16.46% -