Established in 1994, Quintegra Solutions Ltd. (QSL) is a global IT services & consulting company delivering measurable
business results for clients through innovative and customised solutions. It delivers the full range of application
development and enterprise solutions, business process consulting, systems integration and staffing services as well as
pre-defined solution frameworks. Leveraging its proven global delivery model, QSL provides the full range of custom
software development solutions, focused software products as well as consultancy services in IT on various platforms and
technologies. Its strategy is to focus on the high-growth, high-value segments of the IT industry. Thus its capabilities
broadly include application management, product engineering, enterprise solutions such as SAP, testing & validation,
technology consulting, professional services and proprietary product suites. Presently, the company focuses on six main
business verticals including BFSI, Heatlhcare, Education & Training, Engineering Services, Logistics and Telecom. Unlike
other companies, QSL has invested in creating products in its chosen verticals. This underlines its business knowledge of
those verticals and allows it to provide value added services in these business domains.
QSL has over a dozen offices spread across USA, UK, India, Germany & Africa with five world class offshore
development centers in India, Singapore and Malaysia. The company's strongest advantage is its excellent pool of skilled
resources recruited from the finest clan of professionals in the industry. It enjoys long-term business relationships with
clients across diverse sectors including some of the best-known global corporations like Walmart, E-bay, E-trade,
Citigroup, Capgemini, Hitachi, Sun Microsystems, IBM, LG CNC, TIBCO etc. Being a SEI CMM 4 level assessed company,
it believes that operations cannot be separated from technology and therefore provides holistic service to its clients using
its Operations-as-a-Service (Oaas) methodology, which combines shared KPO services with its products run in a
Software-as-a-Service (SaaS) model. This OaaS-SaaS methodology is unique in the industry as it provides operational
benefits to its clients by focusing on operations and technology simultaneously. Moreover, the company has recently
ventured into Knowledge Process Outsourcing Services by setting up an additional 70,000 sq. ft. of IT space in Chennai. It
plans to focus its KPO services on the telecommunications, healthcare and the BFSI space to begin with.
Importantly, as its strategy to grow inorganically QSL acquired M/s. PA Corporation, Virginia, USA (PAC) for a
consideration of Rs.148 cr. (US $37 million) in an all-cash deal in Oct 2007. QSL will pay Rs.80 cr. (US $20 million) upfront
and the balance over a period of 3 years depending on PAC meeting certain performance milestones. PAC specialises in
high end IT consulting and leadership in middle-space IT services such as enterprise application services, data
architecture & data validation, audit compliance documentation, business process management, integration architecture
& deployment and testing & configuration management. With this acquisition, QSL's global headcount now stands at
over 1,000 professionals.
Financially on a consolidated basis, QSL posted satisfactory Q4FY08 results. But for the entire FY08, its topline as well as
bottomline zoomed 5 times to Rs.390 cr. and Rs.35 cr. respectively and it registered an EPS of Rs.13 on its current equity of
Rs.26.80 cr. To fund its inorganic growth, the company made preferential allotment of approx. 26 lakh warrants to be
converted at Rs.135 per share. Although there is a risk of the rupee appreciating again the company is still expected to
earn a PAT of Rs.42 cr. on a revenue of around Rs.600 cr. i.e. EPS of Rs.14 on its diluted equity of Rs.29.50 cr. At a modest
discounting by 12 times, the scrip can shoot upto Rs.175 (100% appreciation) in 12-15 months. It's a screaming buy at the
current market cap of a mere Rs.200 cr.
