Mobis Philipose

India: RCom-Aircel merger could help add scale, improve margins & lower costs

Reliance Communications Ltd (RCom) has had so many non-binding discussions and agreements in recent years that it’s easy to dismiss them as immaterial. Earlier this month, when the company said it had entered a non-binding agreement for the sale of its tower and optic fibre assets, one analyst said, “We’ll… Read more »

India: Will deal activity stay high in mid-cap IT?

Once is happenstance, twice is coincidence and three times is a certainty,” goes the saying. There have been three large deals in mid-tier information technology (IT) services space in the past seven months and at least some analysts are certain it is a sign of consolidation. Analysts at Emkay Global… Read more »

India: After demerger of products biz, Polaris cuts good deal by selling IT services to Virtusa

In hindsight, the erstwhile Polaris Financial Technology Ltd’s decision to de-merge its products business last March has worked out tremendously well for shareholders. Their effective returns since the de-merger was announced work out to 80-90%. For perspective, in the 10 years before the de-merger was announced, Polaris shares declined by… Read more »

India: R-Com buys Sistema; over to Reliance Jio to make it count

Reliance Communications Ltd (R-Com) is acquiring Sistema Shyam Teleservices Ltd’s wireless business for equity worth Rs.2,100 crore. It has also committed to paying Sistema’s liabilities to the government, the present value of which is Rs.2,400 crore. These look like extremely high valuations for Sistema’s loss-making operations, and the deal will… Read more »

India: Why Infosys’ best financial performance wasn’t good enough for investors?

Infosys Ltd’s September quarter results were its best in four years. In fact, it has done so well this could well be the first time in six years that it beats Tata Consultancy Services Ltd (TCS) in terms of year-on-year revenue growth. Adjusted for one-offs, dollar revenues grew by 5%… Read more »

Can Apax Partners expect high returns from its investment in Indian IT player Zensar?

Zensar Technologies Ltd turned out to be a terrific investment for private equity fund Electra Partners. Including dividends, the value of its investment rose by about 19 times, generating an annual return of 18% over an 18-year period. Now, Apax Partners has bought Electra’s 23.2% stake in Zensar for around… Read more »

The R-Com-Reliance Jio deal: More questions than answers

Shares of Reliance Communications Ltd (R-Com) have risen 8% in the past two trading sessions, on hopes that the company would gain from a tie-up with Reliance Jio Infocomm Ltd for sharing and trading radio spectrum. R-Com’s investors have, on numerous occasions, displayed a tendency to put the cart before… Read more »

India: Can JustDial ride the Internet wave with Search Plus?

JustDial Ltd’s shares have underperformed the broader market indices by a huge margin in the past year. One of the reasons cited for this was the delay in the launch of its Search Plus business, an attempt at capturing the growth of e-commerce in the Indian market. The company finally… Read more »

India’s leading online travel agency MakeMyTrip’s woes prove market share doesn’t equal online success

MakeMyTrip Ltd has all the ingredients for online success. First and foremost, it has market leadership in both of its major business segments—online booking of air tickets and hotels and packages, each of which account for 48% of net revenues. It continues to ride the online wave well, and has tapped… Read more »