Subdued results. Not encouraged by the topline growth. Consolation is, OPM grew. Their AR is fancy, numbers don’t reflect. Hopefully they will improve, still holding. How do we know how much was the average currency rates they considered for the income statement? I am little nervous because the Re has depreciated so much, their topline grew in single digit. And most of the revenues are in US-Dollar.
http://www.rssoftware.com/financial_reports/61/rs_software_consolidated_results_q1_2013-14.pdf
By the way, did any one attend their AGM? if anyone attended please share the highlights.
Just got to know Co. is holding an Investors meet in kolkata today… am likely to attend…
Pls post if there are any queries…
Pls post the queries by 430PM as meeting from 5PM …
Atul,
PFB the questions.
1)What is the percentage of operational spending in US?
I haveread that they are looking for acquistions in the electronic payment domain. Is this information credible?
How many new clients did they add in the last quarter?
Recruitment plans for the current year.
Regards,
Rajarshi
Hi,
Any updates in client for RS Software? Is it still dependent on VISA heavily?
Gyan n other people invested here not much activity. Pl post any latest updates on the co.
The promoter is buying and selling shares on a daily basis. Overall in last 2 weeks he has sold 1+% of shares. But this selling is interspersed with buying as well. Unable to understand if he is trying to trade in the shares, or is he trying to get the maximum price for his sell by pumping up the shares? Currently, the promoters behavior appears strange, but the stock is going up irrespective of all this. Does anyone know of any wrongdoing by this promoter earlier or their indulgence in such activities? Do we know of any company whose promoters first buy the shares to raise the prices and then sell their stake at higher prices?
Meanwhile booked some profit in RS Software and pruned my position.
Hi Gyan,
The buying & selling is looking strange. On net, they have sold about 1% shares out of which 0.8% is from Sarita Jain (she has only sold). RR Jain has sold 0.2% net.
Don’t know the reason for this. Promoters have never done this earlier.
Thinking of writing an email to the company to ask what’s going on.
PS- I am holding for past 2 years.
Hi Gyan/Jatin,
Thanks for useful information.
From which site can we check what are promoters selling or buying?
Thanks,
Sunil
BSE Announcements. Read it everyday.
There will be interesting movement ahead as one can see small cap IT stocks are on joyride since last some days.
Interesting read for IT sector investors
“The time to invest in India is now. This is like the 1997 was in Silicon Valleyajust before the big boom,” said Vivek Wadhwa, a vice president of research and innovation at Singularity University in the United States. Until the end of November, $ 1.3 billion (Rs 8,000 crore) of risk capital has been invested in Indian technology companies according to consultancy EY. While new entrants have made a splash, the rising buzz is led by the bold bets being taken by a few global venture funds that have had a ringside view of the sector for nearly a decade now.
Recently Patent was granted to RS Software for following innovation.
Systems and methods for facilitating customer acquisition by businesses
Results are out. At first glance they look good. Sale is up by 21% Y-O-Y and Profit is up by more than 50% y-o-y. Q-o-Q there is a dip in the sale but a rise in the profit. Q-O-Q dip was expected as some of the clients have September ending financial year.
Company declares 1 Rs. interim dividend. Share is available at close to 5 pe TTM.
Result looks as per line and satisfactory for me.
Now PE valuation stands near to 5 for steady performer which has 35 ROE.
I will take the opportunity to accumulate soon.
Kunal
Hi,
Just wanted to bring this to the notice of other members. Are these points from their Audit firms material and noteworthy?
Emphasis of Matter
6). Without qualifying our opinion we draw attention to the matter regarding closing balances of
debtors/ creators. advances and some security deposits being unconfirmed in respect of
which we are unable to express our opinion.
Other matter
We did not audit the financial statement of Mis. Responsive Solutions Inc and R.S. Software
(Asia) Pte. Ltd., (the subsidiaries), whose financial statement reflect total asset (net)
Rs.1,050.05 lacs as at December 31, 2013 and total revenues of Rs.2,339.44 lacs and net cash
flow amounting to Rs.309.78 lacs for the half year ended on that date as considered in the
consolidated financial statement. These financial statements have been audited by other auditors
whose reports have been furnished to us by the management and our opinions in so far as it
relates to the amounts and disclosures included in respect of these subsidiaries, is based solely
on the reports of the other auditors.
Our report is not qualified in respect of this matter.
For chaturvedl &. Company
Chartered Accountants
Firm’s Registration No : 302137E
http://www.moneycontrol.com/stocks/reports/rs-software-auditors-report-for-dec-31-2013-757312.html
People from accounting background will be able to respond to your queries better, but personally I will not pay much attention to that. I have seen such observations for many other companies, esp. w.r.t to foreign subsidiaries. Auditors do the audit of the local company and international subsidiaries are audited by someone else and local auditors rely on their assessment.
Thanks Gyan,
Bought some decent quantity today in spite of the above note from the Auditor. 
Regards,
Amit Goyal.
Hi Friends
I have been following RS Software for a month or so. But I am not able to get my head around the intention of the company to ever share the wealth with shareholders. My primary reason for concern is use of funds form profit as mentioned in
From Annual Statement 2012-13
R S Software Employee Welfare Trust (RSSEWT) (under the âExisting Acquisition Sharesâ)
ADVANCE TO R S EMPLOYEE WELFARE TRUST 1,500.00
Which in turn can be seen in the cash flow statement under the heading:
LOANS AND ADVANCES AND OTHER ASSETS (2,929.05) for Mar2013 vs (586.70) for Mar2012.
Which was largely responsible for huge reduction in Free Cash flow (See calculations below) from 3,744.48 in Marâ12 to 116.94 Marâ13.
Year ending Marâ12
NET CASH FROM OPERATING ACTIVITIES 3,954.65
PURCHASE OF FIXED ASSETS (210.17)
FCF Mar 2012= 3,744.48
Year ending Marâ13
NET CASH FROM OPERATING ACTIVITIES 509.64
PURCHASE OF FIXED ASSETS (392.70)
FCF Mar 2013 = 116.94
Now without the cash flow statement in q1/q2/q3 for 2013-14 results, I am not sure what the company intends to do with the money its making. Can any one shed any light / comment / share views on this. Am I missing something here?
Do check out the blog, on similar practices followed by other companies as well and what it means for shareholders.
https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20130606/GIVOX0605ATL
A small software company exists becuase of its employees. Unlike many other industries where employees are truly dispensible, a small software company can sink or survive based on its employees. If key employees leave the company, it becomes a non-entity. Thus keeping employees happy is the most important criteria of success for any small software company, esp. one which is targetting a specific vertical like Payment systems in the case of R.S. Software.
Employees can be retained either by paying high or by creating a brand name or a combination of both. RSSoft has to come up with various means to retain its talent. Employee welfare fund is one of the ways.
The thing that we need to worry is whether it is a one off thing done to retain employees or is it a permanent problem. If we see that every year a large part of profit is going towards this fund then we definitely need to come out. But, if it is a one off case to retain talent, then it is benficial for shareholders.
