From a recent low of Rs 119 touched on 30 May 2003, the stock of the Tata group software company has risen by 41.30% on sustained buying support.

The BSE Sensex has gained 12.64%, while the BSE IT Sector Index has advanced by 17.59% in the same period. The average daily volumes on the Tata Infotech counter have multiplied to over 1 lakh shares from around 25,000 shares.

The rally on the Tata Infotech counter was due to the improved financial performance of the company. In fact, the stock had started moving up ahead of the announcement of results on 25 June 2003, in anticipation of good results.

For the quarter ended 31 March 2003, the company posted a 226.60% rise in net profit to Rs 22.60 crore (Rs 6.92 crore) on a 33.8% rise in sales to Rs 153.26 crore (Rs 114.56 crore). For the year ended 31 March 2003, the company's net profit rose by 48.60% to Rs 30.46 crore (Rs 20.50 crore).

On a equity base of Rs 18.38 crore, the earnings per share (EPS) for FY 2002-03 works out to Rs 16.57. The current market price of Rs 168.20 discounts the company's FY 2002-03 earnings by around 10 times.

Recently, Tata Infotech entered into a contract-manufacturing agreement with Diebold Inc. of the US to manufacture Diebold automated teller machines (ATMs) for distribution in India and South East Asia. The ATMs are a part of standard Diebold product offerings and will be built according to Diebold's global design and quality specifications.

Tata Infotech (earlier Tata Unisys) was established as a joint venture between Tata Sons, the holding company of the Tata Group in India, and Unisys Corporation of the US. In 1996, Unisys sold its 40% equity stake in the erstwhile Tata Unisys, as a result of which the Tatas held 80% of the share capital of the company.

This called for a change in name of the company from Tata Unisys to Tata Infotech. Presently, 74% of Tata Infotech shares are held by the Tata Group whereas 26% are held by the public, FIIs and domestic institutions.

Tata Infotech was established to implement a 100% export-oriented project to manufacture computer peripherals at SEEPZ, Mumbai. The company operates primarily in three spheres -- providing computer software and software services in India and abroad, manufacturing and marketing imported Unisys mainframe computers and providing after-sales support.

In 1985, the company set up a plant at Goa, to manufacture MICR document encoders and reader sorters in technical collaboration with Unisys.

Tata Infotech has built an international reputation for being a highly competent systems integrator and solutions provider. It has executed more than 5,000 projects worldwide, with a strong presence in the USA, UK, Continental Europe, Japan, Australia and India.

In order to service its customers better in the US, the company has set up a new intermediate development centre in Chicago in addition to the existing 11 offices. In its efforts to increase its geographical coverage it signed a Memorandum of Understanding (MoU) with Consilience Technologies (Pty), South Africa, to market and support its products and services in the key sectors and to facilitate the business of the company's Education Service division.

The company had also set up a subsidiary in Canada in May 2001 to increase its presence in the North American markets.