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Jayanta Mallick

Kolkata , June 3

The VisualSoft stock is ruling firm on expectation of improving fundamentals of the company, including its BPO business, during the current fiscal.

The counter moved up by about one per cent to close at Rs 119.85. From a 52-week low of Rs 105 hit on March 30 last, the stock gradually has been witnessing a steady price trend.

The company, unlike other IT players, does not give revenue or profit guidance. According to market analysts, 2004-05 was amongst the years when profit and sales growth were rather muted. "However, the current fiscal should bode well," an analyst with an institutional brokerage said.

Mr V. Krishnan, Vice-President Finance of the company, confirmed to Business Line that on a conservative estimate, bottomline growth could be in the range of 20-25 per cent. He said 2004-05 was a year of consolidation. "This year we expect to consolidate further and grow at a steady pace," Mr Krishnan added.

Regarding the new BPO business consisting of services of tech help desk, transaction processing, e-mail support and outbound market research, he said after a soft launch last fiscal, the company is gradually scaling up its operations. "Last fiscal, we had a 75-member team, and in the course of the current financial year it is being ramped up to a 200-250 seat facility," he said. According to a fund manager, at an EPS of Rs 14.24, the stock is attractive in view of a steadily upwardly mobile growth prospects. It is adding clients, expanding and innovating operationally as also recording better margins, management sources pointed out. "The debt-free company has Rs 81 crore cash in its 2003-04 books or around Rs 41 per share. It would go over Rs 100 crore based on the 04-05 results. If cash is subtracted from its current market capitalisation, then its annual sales figure would be much higher than its real market cap figure," the fund manager mentioned.

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