Rolta India Ltd Term Buy Call: StocksIdea.com

ROLTA

Company was incorporated in the year 1989. It has subsidiaries in USA, Canada, UK, Germany, Netherlands, Saudi Arabia and Middle East with a network of over 15 offices in India. Rolta's Indian customers include Ministry of Defense, police authorities, MTNL, ONGC, BSNL etc. Global customers include Verizon, Bell Canada, Saudi Telecom, Bahrain Telecom, British Telecom, and Hong Kong Telecom. Company’s quality standards are benchmarked to world-class levels, with certifications such as BS15000, BS7799, ISO-9001: 2000 and SEI CMM Level 5. Rolta International, a fully owned subsidiary at Huntsville, Alabama, US, works to digitize maps, develop software and create a geographical database for the customers of Intergraph.

Rolta provides software/information technology based engineering and geospatial solutions and services to customers across the world and has executed projects in more than 35 countries. Rolta is headquartered in Mumbai and operates through a network of branch offices in India and seven subsidiaries located in USA, Canada, UK, The Netherlands, Germany, Saudi Arabia and UAE. Rolta is on of the leading Automated Mapping and Facilities Management software conversion service providers in the world. In the Engineering domain, Rolta enjoys around 80 per cent market share of the Plant Design Automation (PDA) segment in India. Rolta has a strategic partnership with Stone & Webster, Inc., USA one of the world's foremost engineering-construction companies, to provide high-quality cost-effective engineering, design and procurement services, related to power, refinery and petrochemical projects, worldwide.

Products & services— Company’s operations are structured into 3 strategic business groups, viz. Geo-Engineering, Engineering Design Automation and eSolutions. Rolta has pioneered CAD / CAM / GIS solutions in India. As customer requirements have evolved, the character of Rolta's solutions too has transformed from being pure design & engineering driven to encompassing a customer's comprehensive enterprise wide design & engineering needs that integrate into the organization's overall business process. There is a clear focus in being on top of the value chain. These high value projects de-risk the company and build a progressively healthy bottom line. This overriding focus on its core competencies has enabled it to constantly add value to its customer base. Rolta enjoys more than 2/3 share of the Geospatial market i. e. applications like Photogram metric Mapping, Aerial Triangulation, Digital Terrain Modeling, Ortho-photo creation, Image Interpretation etc.

Rolta has set up state-of-the-art Competency Center, equipped with infrastructure and facilities that match global standards. The resource pool at these Centers provides a combination of strategies, trends, ideas, experiences and proven methodologies. Company frequently undertakes research to enhance and develop additional products in its various lines of business. These efforts result in creation of specialized software toolkits, utilities and products, development of state-of-the-art techniques and processes, thereby enabling the company to meet specific customer requirements.

Rolta's positive Economic Value Added (EVA) is a clear indication that the company has met the expectations of the investors. Rolta is in business to provide an attractive return to its owners and its improvement over the years has reflected in the returns to them. Rolta's intangibles - off balance sheet strengths - possess a direct, financial correlation. Rolta delivers specialized solutions, which armour Rolta's reputation and brand.

Alliances— Rolta enjoys trusting and long-standing partnerships with major technology companies that include global leaders like Intergraph (GeoSpatial Technology, Plant Design Automation), Z/I Imaging (Photogram metric and Imaging), PTC (Mechanical Design Automation and Product Lifecycle Management), IBM, Microsoft, Oracle (eBusiness and eCommerce), Computer Associates (eSecurity and Network Management) and others.

Recent developments— In October 2009, Phillips, Hager and North (PH&N), one of Canada’s leading investment management firms acquired 1.85% stake in Rolta India for Rs 179.74 million. It bought 2.97million shares of the company at National Stock Exchange (NSE).

On December 2009, Infoterra France, an EADS Astrium subsidiary and a leading provider of geo-information products and services has signed an agreement with Rolta India. This agreement allows Rolta to augment the capacity of its delivery centers for photogram metric processing. By combining the sophistication of Pixel Factory with Rolta’s experienced and highly skilled GIS experts, customers can expect to obtain high quality map products with improved turn-around. This agreement between Infoterra and Rolta will create a strong partnership between two of the leading companies in the geo-information industry. Through this partnership, Infoterra will be able to improve its access to the rapidly growing Indian market, whilst Rolta will benefit from unique image processing technology.

In March 2010, Rolta India has won engineering design project for a significant nuclear reactor system of international importance. Rolta believes that it is one of the first of its kind internationally and is very complex and technically challenging engineering design project. The project demands a high level of specialized expertise in conceptual design, system development, finite element analysis and safety analysis, in addition to multi disciplinary engineering competence and domain expertise.

Valuation— Rolta is aggressively investing in people, technology & infrastructure to exploit & aggressively meet emerging opportunities. Rolta has now reached a critical mass of intellectual capital in the GeoSpatial, Engineering Design and eSolutions environments. Rolta continues to benefit from its strong technical first mover advantage in the rapidly evolving Information Technology Industry. We expect rolta’s earning to grow at a CAGR of 25% for next 3 years. At