Subex, a mid-tier IT services company focussed on the telecom vertical, has seen its stock being beaten down due to multiple overhangs including a heavy FCCB burden and anaemic pace of revenue growth.

The company has foreign currency convertible bonds outstanding to the tune of $131 million. Though it has to be repaid on March 9 this year, Subex has got permission from the RBI to defer it till July 9.

In the first nine months of FY12, the company's revenues grew by 2.4 per cent over the same period in the previous fiscal to Rs 383.3 crore, while net profits (excluding extraordinary items) plummeted by 69.6 per cent to Rs 16.6 crore.

The telecom vertical for most Indian IT companies, including top-tier software majors, has been passing through turbulent times over the past couple of years with clients in this segment slowing or reducing spends.

In September 2011, Subex sold its Activation business, which it had acquired for $164 million in 2007. The company did not see sufficient traction from this acquisition. Post the sale, the company hopes to refocus and grow its core business at a reasonable rate.

It has also been winning multi-million dollar deals in recent times from telecom operators in the West Asia and African regions.

But the key trigger for the stock would be based on how the FCCB is managed.

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