Newsletters
The Enterprise Security Supersite NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home Network Security Viruses & Malware Cybercrime Security Solutions More Topics...
APC Free White Paper
Optimize your network investment &
Enter to win a Samsung Galaxy Note

www.apc.com
Press Releases
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
India Tier I IT Companies: Revenue Up 25.76 Percent
India Tier I IT Companies: Revenue Up 25.76 Percent

 
September 28, 2012 8:57AM
India Tier I IT Companies: Revenue Up 25.76%, Enterprise Value Down 16.53% -- Twelve Month Analysis Also Reveals Tier II companies increased sales 17.88% with a 16.07% Decline in Enterprise Value
 


Bangalore, India, September 27, 2012 -- In the past 12 months, September 2011 to September 2012, India IT companies have increased sales while EV/EBITDA (Enterprise Value/EBITDA) have declined. The analysis further shows that Indian Tier I IT companies have had sales growth of 25.76 percent, and a profit increase of 16.53 percent, while EV/EBITDA has declined 12.48 percent. Tier II companies have increased sales 17.88 percent and profits 15.77% with a 16.07 percent decline in EV/EBITDA*. martinwolf Global M&A Advisors conducted the analysis as preliminary findings in its MW India IT Index.

The results underscore the fact that there is a going to be a new fight for growth and relevancy for India's IT companies. India's IT companies are at an inflection point. In the past, they have been able to sit "inside India" and serve the world through better, cheaper, faster services as we have seen in the explosive growth in BPO in the past decade. The inflection point of declining value suggests that India IT companies "inside India" strategy will result in working harder and getting nothing or little in return.

According to Marty Wolf, CEO of martinwolf Global M&A Advisors, "It begs the question, where can India IT companies find value. The answer is outside India, and oddly enough inside India. But, also what a company does matters in determining value. Highly specialized IT services that are less than $500M in sales can realize a very attractive valuation. And, a large multi-national IT service company like IBM, or SAP in managed services and infrastructure today is worth more than a global BPO organization," he said.

The martinwolf Global M&A analysis of global IT deals in the past year bear this out. For example, BPO companies (voice) sold for 4.7x EBITDA, while Managed Services & Infrastructure Services companies were sold at 15.6x EBITDA, or 3.3 times more than BPO. So, what a company does matters. And, smaller, specialized vertical niche players like Healthcare IT Services companies were sold at 11.7x EBITDA, versus 9.5x EBITDA for Financial IT Services both outpacing valuations of much larger BPO companies.

Size affects valuation as well. Offshore companies exceeding $500M in sales garnered 10.8x EBITDA, versus 5.1x EBITDA for those with revenues less than $500M.

Wolf added, "If you are an IT company what you do matters, and scale matters. When we say, what you do matters, it matters in terms of the type of IT services company you are, and the vertical business segment you service. (continued...)

1  |  2  |  Next Page >

 

Tell Us What You Think
Comment:

Name:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Press Releases
1.   Enghouse's CCE: Product of the Year
2.   Zendesk Expansion Delivers Jobs
3.   Dragon NaturallySpeaking 13 Debuts
4.   Web Platform Ezoic Launches
5.   Philips: We're Onto the Next Big Thing
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
IBM Beefs Up Identity Intelligence Security Solutions
Big Blue is betting big on identity intelligence. IBM just acquired a private firm with security software to govern user access to apps and data across cloud and on-premise environments.
 
Tor Internet Privacy Service Warns Users It Was Breached
You may never have heard of the Tor Project, but the Internet privacy service is making headlines. Tor’s devs say users might be victims of an attack launched against the project earlier this year.
 
Canadian Government Charges China with Cyberattack
The government of Canada is not happy with China. Canadian officials have accused "a highly sophisticated Chinese state-sponsored actor" of launching a cyberattack on its National Research Council.
 

Enterprise Hardware Spotlight
AMD's ARM-Based Opteron Out in $3K Dev Kit
It's dubbed "Seattle" and it's AMD's first 64-bit ARM-based Opteron processor. The low-power chip is being released as part of AMD’s Opteron A1100-series developer kit, and aimed at high-end data center needs.
 
Apple Updates MacBook Pros, Cuts Prices Up to $100
The popular MacBook Pro laptop line just got an update and a price cut of as much as $100. The MacBook Pro with Retina display now includes faster processors and double the memory.
 
Dell, BlackBerry Not Sweating Apple-IBM Alliance
IBM's recent move to partner with Apple to sell iPhones and iPads loaded with corporate applications has excited investors in both companies, but two rivals say they are unperturbed for now.
 

Mobile Technology Spotlight
Virgin Mobile Offers Custom Smartphone Plans
As the wireless carrier wars continue heating up, Virgin Mobile just threw the customization coal onto the fire. The firm has debuted a no-annual-contract plan with rates based on individual use.
 
Collaboration Provider Asana Revamps Mobile App
Asana, a collaboration software provider started by a Facebook founder, is now out with a rebuilt native iOS mobile app. It replaces one that even the company admits was not up to par.
 
FTC Wants Fix for 'Perfect Scam' of Mobile Cramming
The U.S. Federal Trade Commission has issued new guidelines to curb “mobile cramming,” a troublesome practice that adds unauthorized third-party charges to mobile phone bills.
 

Navigation
Enterprise Security Today
Home/Top News | Network Security | Viruses & Malware | Cybercrime | Security Solutions | Mobile Security | Disaster Recovery | Windows Security
Data Security | EST Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.