Hi Kiran,
I did some number crunching at my end too and the services numbers do not look so bad. Further the OPM in centum products (not the JV ones) is extremely high. When looking at the consolidated figures for profit I generally look after removing the minority interest. In the JV Rakon holds 49% so if I were to look at Centumâs Consolidated numbers after removing minority interest the mix will look better for services (although it does not impact the margins).Consolidated PBT before interest and growth and share in PBT after removing minority interest: FY14 figures are annualized.
|
FY14 PBT |
Share in PAT |
FY 14 OPM |
FY13 PBT |
FY 13 OPM |
|
|
Centum Products |
1842 |
33% |
31% |
678 |
18.4% |
|
Centum Rakon(51%) Products |
1802 |
32% |
24% |
1231 |
23% |
|
Centum Services |
1902 |
35% |
8.9% |
-1410 |
--- |
Consolidated revenue and revenuegrowth: FY14 figures are annualized.
|
FY14 Revenue |
FY 13 Revenue |
Growth |
|
|
Centum Products |
5910 |
3682 |
60% |
|
Centum Rakon Products |
14615 |
10595 |
37% |
|
Centum Services |
21282 |
14035 |
51% |
Assumptions: All services are provided by Centum only.
Services business OPM changes in last few quarters. Instead of looking on YOY basis where there is little information that can be obtained (due to one time last year loss) I have done a qoq tracking of these numbers and see them improving significantly. In Q2FY12 the company booked a one-time loss in services division of 13.35 crores so those figures do not make much sense. The OPM in services business seems to be improving significantly.
|
Sales |
OPM |
|
|
Q1FY12 |
3068 |
-3% |
|
Q3FY13 |
3636 |
-3.7% |
|
Q4FY13 |
4126 |
3.7% |
|
Q1FY14 |
4340 |
2.6% |
|
Q2FY14 |
5563 |
10.4% |
|
Q3FY14 |
6057 |
12% |
I thing the blind spots that we have now are mainly around growth and earnings sustainability besides Rakon. It will be also interesting to understand the competition incase you get a chance to meet the management.