HTMT Global, Netflier Finco relist today, trade lower

HTMT Global is a BPO arm of Hinduja TMT , wherein the BPO arm has demerged to form HTMT Global Solutions, which got listed today.

HTMT Global has 65 clients and 9,500 employees. It caters across all verticals such as healthcare, insurance, telecom, banking, financial services, and consumer electronics. For FY08, the company is expected to clock revenues of Rs 600 crore, 10% net margins and net profit would be Rs 60-66 crore. Firstsource is the only listed player in this space and the only comparable peer. Firstsource , at its current price is available at 23 times its FY08 earnings. Whereas, HTMT at its current price is 16 times its FY08 earnings. But, Firstsource margins are expected to be higher than HTMT Global, which is why the slip.

The second company Netflier Finco that relisted today, was also by way of a demerger. The demerged arm of JK Tyres is now vested in Netflier Finco. This will be purely an investment company and its investments are held mainly in JK group companies and other subsidiaries. Investments include JK Paper , JK Sugar , JK Agri , JK LaxmiCements . The total value of cements comes to Rs 188 crore.

Going forward, the company will be free to invest in other companies. Their income will be purely from dividends. Netflier's H2FY07 net income was Rs 30 lakh and net profit was Rs 9 lakh.