Top 25 SPs: Allied Digital Services

SILVER
CLUB RANK
(2010-11): 2

It was not a great
FY11 as first an income tax survey on Allied Digital was mistaken as
a raid, resulting in a freefall in the stock price. The net profits
dipped by 7% and the results for the last 3 quarters were below
expectations. One of its large US clients (where it had invested
$2.8mn) got acquired leading to uncertainty; another government
telecom project in India was a victim of the general controversy.
There was a brake on the global march after a heady FY10 as its
export revenues dipped by 11%. It was however not all gloom as Allied
remained a major player in managed services. From `677.34 crore in
FY10 to `721.94 crore in FY11, the company has grown by leaps and
bounds. But it was not all gloom as Allied remained a major player in
managed services, with the maximum revenue coming from these
offerings. Through managed services, the company made `348 crore from
domestic market, and ` 46 crore from international ventures. Another
major contributor was the system integration work, which added ` 320
crore to overall revenue.

Though global
revenues dipped, it still accounted for 45% of its topline making it
one of the most prominent tier 2 solution providers to have forayed
overseas successfully. BFSI (35%) and IT/ITeS (15%) were the key
contributors accounting for nearly half of Allied revenues in FY11.
The three major IMS deals it bagged in FY11 included IMS for big a 5
global consulting firm, a large international airline operations, and
IT infra establishment and lifecycle management for one of the
leading financial institutions. New services were also the focus-it
introduced new service under enterprise mobility management services
while Intel Capital invested `32 crore to expand Allied's cloud and
RIM offerings.