Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: TDS :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: empanelment :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: cpt :: due date for vat payment :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS
Sales Tax »
 Insurance Agency Mergers and Acquisitions in Q1 "Explode," OPTIS Partners' Report Reveals
 Sales tax sleuths raid spare parts shops in Meerut's infamous Sotiganj market
 Income Tax: How offshore income could be taxed twice
 India finalises bills to launch new sales tax in July
 NMC to implement new tax system from Apr 1a
 13 per cent sales tax boost post demonetisationa
 Arun Jaitley May Lower Corporate And Income Tax Rates But Hike The Service Tax Rate
 Tax on high seas sales becomes dispute area
  State extends GST enrolment deadline
 State extends GST enrolment deadline
 To protect its status, state forms panel to draft legislation on GST

Geometric: Higher tax spoils growth and sales
January, 04th 2012
Continued traction in the engineering services segment and growing demand from Europe augur well for Geometric, a Mumbai-headquartered engineering solutions provider. 

Geometric offers product lifecycle management, engineering solutions and offshore product development solutions and technologies. Also, Intellectual Property contributes a small portion to the company's overall revenues. 

Over the past five years, Geometric has posted a compounded annual growth rate ( CAGR) of 23% in its top line and 17% in bottom line. For the first half of FY12, revenue grew 27% YoY to Rs 364 crore. Operating profit margin improved 140 basis points to 12.3%. 

However, higher sales and improved operating efficiencies were offset by a higher amount of taxoutgo, which resulted in a marginal increase of 3% in net profit to Rs 25 crore. Effective tax rate during the period stood at 39% against 1% during the year-ago period. 

For the full year of FY12, Geometric expects to clock a revenue growth of 22-25%. It has taken up cost management measures which should help in maintaining margins at the current level. However, higher tax rate is likely to put pressure on the company's bottom line for the fiscal. 

The management expects the tax rate of 27% for the whole of the financial year. 

On the hedging front, with a reasonable amount of forward cover at 48 plus level, Geometric did benefit from the recent rupee depreciation. However, the company continues to see currency volatility as a concern because of the amount of uncertainty it introduces in decision making. 

Increased penetration of the existing clients by gaining larger share of their wallets and acquiring newer customers in Europe continue to be the key growth drivers. Also, the engineering sector has a huge scope of outsourcing. With its continued investments in engineering models, the company expects to gain from the opportunity. 

At the current market price of Rs 47, the stock trades at five times its earnings for the trailing 12 months. This is cheaper in comparison with the similar-sized industry rivals which are trading at a price-to-earnings ratio in the range of 6-8. Geometric's stock has fallen over 40% in the past one year against a 25% drop in the benchmark Sensex
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Achievements

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions