IT infrastructure management services

IT infrastructure management services

The global IT infrastructure management services (IMS) business is estimated to be $100 billion. Around 60-70% of the IMS activity can be outsourced, which translates into a huge business opportunity for Indian companies in this space.

Allied Digital Services Ltd

Allied Digital Services Ltd (ADSL) is a leading IT Infrastructure management and Technical Support Services outsourcing Company which enable global, large and medium enterprises and service providers to reduce their total cost of ownership using a combination of on site and remote services.

Business:

Allied Digital is into IT infrastructure management, security management and technical support services. The company, which has long been present in the domestic market, is now also looking at global markets. It has set up a network operation centre and security operation centre in Mumbai to serve its customers.

It launched its remote management services center consisting of a network operation center (NOC) and information security operation center (SOC) at Mumbai. It also started its liasioning offices in Sydney, Australia and New Jersey, United States of America. By going international, Allied hopes to be able to garner a good market share in the overseas business by offering its services at competitive prices leveraging the lower cost of technical manpower in India.

ADS delivers services through its own facilities and centres, spread across 92 cities and follows a `direct' model rather than a franchisee model, as adopted by its peers. This gives the company a direct control on the quality of service and helps it maintain the desired level of efficiency due to uniformity in training. The client list includes big name across the industry in Manufacturing, Banking, Energy, ITES, Service and Government.

Recent Awards:

Allied Digital Services bagged the Gold award as the Fastest Growing company. It registered a 90 percent growth in 2007-08, by posting revenues of Rs 297 crore in 2007-08, up from Rs 156 crore in the previous fiscal - DQ Channels

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Allied Digital is awarded ‘Best under a Billion Dollar Company’ by Forbes Magazine

Allied Digital acquires US based EnPointe Global Services for US$ 30 Million:

The company acquired an 80.5 percent stake in En Pointe Global Services LLC as well as a majority stake in Bengaluru-based Digicomp, which offers reverse logistics, technical support, customer care, warranty services, etc.

Financials:

Results Q3 2008:

Sales :96 Cr
Operating Profit : 23.64 Cr
Net Profit :18.6 Cr
Allied Digital’s net sales have risen more than three times over the past two years. Net profit has grown by four times during the same period.
Promoters : 61%
Institutional Holding: 23%
Dividend Yield: Nil
P/E: 10.3
CMP: 149 (NSE)

BSE :
52 Wks High (06-JUN-08) 1049.6052 Wks Low (12-MAR-09) 146.05

NSE:

52 Wks High (06-JUN-08) 982.20 52 Wks Low (12-MAR-09) 145.05