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M&M FINANCIAL | BSE CODE : 532720 | Volume : 226893 | CMP : Rs.249

With improved focus on recoveries Mahindra & Mahindra Financial Services, has been able to witness sequential decline of 7 per cent in the gross non performing asset levels in Q4FY14 to stand at 4.4 per cent. It is said that the accelerated push towards NPA management and withdrawal from riskier segments shows that the asset quality related overhang has been largely addressed and will improve in coming quarters. This is backed by the improved performance witnessed by the company in its Q4FY14. The NII came in at Rs.770 crore up by 14 per cent on YoY basis. With cost rationalisation measures, operating profit came in at Rs.540 crore up by 16 per cent on YoY basis. Also with lower provisioning following sequential decline in NPAs, net profit stands at Rs.310 crore. The strategy of deeper penetration will not help manage NPAs through recoveries but will support AUM growth in the event of pick-up in auto volumes

INFOTECH ENTERPRISES | BSE CODE : 532175 | Volume : 2566 | CMP : Rs.319

Infotech Enterprises reported revenues of USD 96.4 million, up 3.3 per cent on QoQ basis for Q4FY14. The strategic investments and rebranding initiatives have led to sequential drop in margins. However, the profit after tax came in at Rs.69.8 crore which is way ahead of the street estimates. Revenues from top 10 clients increased by 5.2 per cent sequentially and accounted for 50.7 per cent of the total revenues. Revenue from North America is up by 6 per cent on QoQ basis and delivered growth on the geographic front. Headcount at the end of the quarter came at 12,094 employees which indicate a net addition of 236 employees. It has shown marked improvement in free cash flow generation aided by lower CAPEX and improving debtor days. Owing to the strong revenue exit rate for 4QFY14 and consolidation of Softential, the company is all set to deliver better returns going forward.