IZMO Share price

The Company was incorporated on 08.09.1995 under the Companies Act 1956 and commenced business operations from 18.09.1995. The Company set up its SAP Solutions Centre in 1996 by procuring SAP R/3 licence from SAP AG through Siemens Information Systems Limited Bangalore in order to train consultants internally and offer SAP Implementation Service to clients worldwide. The Company was successful in SAP R/3 skill building and emerged a local resource centre for SAP Implementation services.The Company identified UNIX-PC connectivity as an emerging trend and built up expertise in this area. It has tie up with Hummingbird Communications Limited Canada who they represent as Master Reseller in India. Logix is presently providing X Windows and Web connectivity solutions based on Hummingbird Software to its clients such as Wipro Citicorp etc.The Company established a representative office in Singapore in 1997 and has executed several projects there since then. During 1998 the Company has set up a Solutions Centre at Dubai providing consulting resources to the Middle East Market. In the Middle East the Company has built up its expertise in handling Turnkey ERP implementations and a good client base.The Company set up an Off-shore Software Development Centre (OSDC) at Electronic City near Bangalore in 1998 for providing Overseas Clients a convenient base for programming services. The Company signed up with SIEBEL Systems INC. USA in 1999 to act as a consulting partner for the development of the company''s products in India Middle East and South East Asia.Logix has been in the forefront of SAP Implementation in the Middle East. The Company has developed its own Rapid Implementation Methodology called LMIS which is a proprietary methodology which actually defines the process for implementation of SAP R/3. This also includes various toolkits and templates which enable consultants to speed up the implementation and bring down the cost of the project.Most of the Indian companies who are in the ERP business concentrate on staffing operations where they provide consultants for specific periods of time within the overall project implementation. Indian companies are normally involved in Off Shore Development of software which is carried out in India over a Satellite Link. In this kind of operation thespecifications are generated by the client in USA and the coding is carried out in India. A quick study of the business plan of Indian companies reveal that a large part of their revenues are from Offshore development activities. Infact a number of companies position themselves as experts in offshore development only.The basic advantage that Indian software companies enjoy is the low cost of programmers vis-a-vis their western counterparts and they build up their business on this unique selling point.Very few of them venture overseas to handle complete projects because they have no core competence in this area. The cost of building local infrastructure in different countries is also prohibitive. The other few competitors to Logix are SISL HCL Infosystems and Price Waterhouse Coopers.The Company''s total revenues have increased from Rs. 557.06 Lakhs in fiscal 1998 to Rs. 613.07 Lakhs in fiscal 1999. The revenue from software operations has increased from Rs. 456.06 Lakhs to Rs. 494.70 Lakhs. Export revenues have recorded a significant growth rate of more than 100% from Rs. 183.86 Lakhs in fiscal 1998 to Rs. 369.19 Lakhs in fiscal 1999.Profit before Tax has increased to Rs. 33.10 Lakhs in fiscal 1999 from Rs. 12.32 Lakhs in fiscal 1998; an increase of 168.66%.The Company has achieved a turnover of Rs. 290.33 Lakhs in the first quarter ended June 30th 1999 of the current fiscal out of which exports have contributed Rs. 277.32 lakhs. The growth in Q1 of the present financial year has been a result of the extensive marketing activities undertaken in the previous years.The Profit before Tax is Rs. 70.44 Lakhs for the first 3 months of this year. Profit after Tax as a percentage of Sales has increased to 24.26 % in Q1 of 1999 from 3.73 % in fiscal 1998-99.The change in the Company''s business strategy has been the major reason for the sharp increase in profitability of the company in the current financial year. This trend is likely to continue as the company has been able to achieve much higher value addition in its Turnkey ERP Implementation Services.The Company is promoted by professionals and technocrats with adequate experience in Software industry.