i-flex acquires mantas

i-flex Solutions’ Rs 565-crore ($122m) transaction to buy out Mantas improves the former’s profile among financial services players which grapple with operational risk and compliance risk. i-flex already covered its operational risk through its product, Reveleus. Anti-money laundering is a key component in compliance, for which i-flex was already collaborating with Mantas.

The need to own a product company in this space stems from the importance given to anti-money laundering by government agencies. In recent years, it has gained importance due to the links between money laundering and funding of terrorist activities.

i-flex hopes to benefit by cross-selling solutions to each others’ customers, and from a wider geographical client base. Customers benefit by having a single platform, and i-flex stands to gain more by owning Mantas, rather than partnering it.

In 2005, Mantas’ revenues were at Rs 143 crore ($31 million) and it suffered a loss of $77,000, primarily due to amortisation of intangibles. Sales growth was 40%. During the current year, sales have increased in the first six months by 26% Y-O-Y and more importantly, it made an operating profit of Rs 12.4 crore ($2.7 million) from continuing operations, compared to a loss of Rs 7.5 cr.

Its financial performance has improved from the second half of 2005 (calendar year). That explains the price that i-flex is paying, about 3.5 times its trailing four quarter sales. Synergies could come in terms of savings in integration and selling and administration costs, which in turn could further improve profitability in the years to come.

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How Infosys grooms its future leaders

Great companies can neither be built nor their greatness sustained without great leaders. A Reliance would not have been possible without a Dhirubhai, nor an Infosys without a Murthy.

But on August 20, 2006, at the age of 60, when N R Narayana Murthy retires as the company's chief mentor and chairman, Infosys Technologies Ltd is not really chewing its nails anxiously.

A succession plan has long been put in place and the smooth transition of authority and leadership ensured. Murthy will also continue as the non-executive chairman of Infosys.

Of the seven original founders of Infosys, one of India's greatest corporate success stories, only four will remain at the helm of affairs at the company from August 21: Nandan Nilekani, S Gopalakrishnan, S D Shibulal, and K Dinesh. N S Raghavan retired in 1999, while Ashok Arora had quit the firm much earlier, in 1989, to settle down in the United States.

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Infosys bullish

At 12:32 pm, Infosys Technologies is quoting at Rs 1,711, up Rs 46.25, or 2.78%. It has touched an intraday high of Rs 1,715 and an intraday low of Rs 1,670.
The company has bagged order to provide finacle to mid-tier Indian Bank. It is trading with volumes of 3,25,141 shares. Yesterday the share closed up 0.36% or Rs 6.05 at Rs 1,664.75.

Sensex leaps beyond 11000 points

Infusing life into Stock market, under heavy buying, sensex crosses 11000 mark and is up by 200 points.

The markets are continuing to trade strong on the back of buying seen in index pivotals. At 10.50 am IST, the Sensex is up 133.44 points or 1.23% at 11009.63, and the Nifty up 37.60 points or 1.18% at 3219.7.

About 1387 shares have advanced, 356 shares declined, and 48 shares are unchanged.
Top gainers on the Sensex are Ranbaxy Labs up 4.15%, Reliance Energy up 2.12% and L&T up 1.89%.
Top gainers on the Nifty are Jet Airways up 3.21% and GlaxoSmithKline up 2.40%.
All the Sensex stocks are trading in the green.
Index heavyweight Hindustan Lever was trading at Rs 231.80 up 1.64% from its previous close of Rs 228.05.
Index heavyweight Reliance was trading at Rs 1,000.50 up 1.07% from its previous close of Rs 989.90.
Tech major Infosys was trading at Rs 1,689.60 up 1.49% from its previous close of Rs 1,664.75.