The company exhibited sustained volume growth during the quarter. The results were broadly in line at the EBITDA level. A higher other income component resulted in modestly above estimate profits. Revenue visibility remains strong for FY08 and encouraging for FY09. ‘Offset clause’ can bring in potentially large business in the defense and aerospace areas.
Infotech is cash-rich post the recent private placement. Strategic acquisitions are possible in the near term.FY08 and FY09 earnings are estimated at Rs.16.1 per share and Rs.20.9 per share, respectively, based on fully diluted equity. Kotak recommends a BUY on the stock with a price target of Rs.354.