GICS Industry : Software l Sub Industry : Application Software l Website : www.geodesiconline.

com

Geodesic Ltd
Key Stock Indicators
NSE Ticker : Bloomberg Ticker : Face value / Share: Div. Yield (%): GEODESIC GEOD:IN 2.0 2.2 CMP (as on 11 Mar 2011Rs/share): 52-week range up to 11 Mar 2011 (Rs)(H/L): Market Cap as on 11 Mar 2011 (Rs mn): Enterprise Value as on 11 Mar 2011 (Rs mn): Div. Yield (%): 0.0 79.2 142.75/67.00 7,139 6,573 Shares outstanding (mn) : Free Float (%) : Average daily volumes (12 months) : Beta (2 year) : 90.1 76.8 491,122 1.0

Geodesic Ltd (Geodesic) formerly known as Geodesic Information Systems Ltd was incorporated in 1999. The company provides software solutions related to information sharing, communication and entertainment through mobiles and desktops. It markets its products under the GeoAmida, Continuum, Mundu brands.

Key Financial Indicators Revenue (Rs mn) EBITDA ma rgi ns (%) PAT (Rs mn) PAT ma rgi ns (%) Gea ri ng (x) EPS (Rs /s ha re) PE (x) P/BV (x) RoCE (%) RoE (%) EV/EBITDA (x)
n.m. : Not meaningful

KEY HIGHLIGHTS
New products to serve varied verticals Geodesic in FY2010, launched various new products and technologies targeting different verticals such as banking and financial industry, automobile, information technology, telecom and others. The company launched unified communication solutions under the brand Continuum which enables enterprises to communicate and share information through audio-video conferencing, white boarding and desktop sharing facilities. It developed electronic computing application named GeoAmida targeting state and central government departments to execute public distribution, remote health management services and financial inclusion schemes effectively. Geodesic launched Mundu TV during the year which enables users to watch television whenever they want on desktop and mobile. The company also came with an international short message service (SMS) services under the brand Mundu SMS for India, Australia, Singapore, Philippines, UAE and UK. During the year Geodesic launched a beta version of Filmorbit, a portal which deals in media and entertainment industry in India. The company during the year launched various books and new series of comics under the brand Chandamama. These new launches would enable the company to serve varied verticals such as retail consumers, telecom, media and entertainment industry, banking and financial institutions and other enterprises. Expanding operations The company during FY10 incorporated Geodesic Gridpoint Energy Pvt Ltd to develop solutions to prevent or reduce energy losses in various sections of transmissions. The company focuses on governments and enterprises where such energy losses take place frequently due to inefficiencies and theft in the system. It has also made a strategic alliance with Zee Entertainment Enterprises Ltd and formed a company named ITM Digital Pvt Ltd. Through this alliance the company plans to launch real time and on-delivery entertainment applications for mobile and internet enabled devices.

Mar-08 3,164.7 62.1 1,485.7 46.9 1.3 16.1 11.2 4.4 31.3 48.7 7.8

Mar-09 6,531.4 56.6 2,642.0 40.5 1.1 28.7 2.2 1.0 33.1 56.1 1.8

Mar-10 6,375.0 55.5 2,236.1 35.1 0.6 24.2 3.3 0.9 22.9 32.7 1.9

Shareholding (As on December 31, 2010)

DII 1% Others 32%

FII 44%

KEY RISKS
Exchange fluctuation risk as exports contributed ~98% of the total FY10s revenues High employee costs and attrition level Anti outsourcing legislation

Promoter 23%

Indexed price chart

Stock Performances vis--vis market

Returns (%) YTD GEODESIC NIFTY -31 3 1-m 7 3 3-m -17 -8 12-m -39 6
(index) 140 120 100 80 60 40 20 Nov-10 Apr-10 Dec-10 Aug-10 Sep-10 Oct-10 Mar-10 May-10 Feb-11 NIFTY Jun-10 Jul-10 Jan-11
Note: 1) YTD returns are since April 1, 2010 to Mar 11, 2011. 2) 1-m, 3-m and 12-m returns are up to Mar 11, 2011.

('000) 8000 7000 6000 5000 4000 3000 2000 1000 0

Volumes (RHS)

GEODESIC

CRISIL COMPANY REPORT | 1

Geodesic Ltd
BACKGROUND
Incorporated in 1999, Geodesic is a software development company which develops messaging and e- business solutions. Its products are used in desktops and mobiles which enable the user to setup, manage and share information with other users across the network. The company has five major business units viz- unified communication, collaboration and customer alignment and relationship management (CRM) under which it delivers real-time communication and collaboration services for instant messaging, online meetings, desktop sharing etc. Its mobile division develops application which enable the user to access their e-mail accounts, social networking sites, radio and television. Geodesics electronic computing platform division develops solutions which are used in e-governance activities, currently these applications are being used in public distribution system, National Rural Employment Guarantee Act (NREGA) schemes and others in various states. The company has separate division for financial products and services which develops financial analysis, wealth management and other applications. For mobile value added services, content is the key factor which influences individuals choice of purchasing particular scheme. At Geodesic there is separate content division and it has made provisions for content in the areas of education, audio and video by entering into contracts with various data provider companies. The company operates through three domestic subsidiaries and eight international subsidiaries. It has 12 offices across the globe and employs more than 600 people.

COMPETITIVE POSITION
Peer Comparison

P artic ulars Geodes ic P eriodEnds On R evenue (R s m n) E B ITD A m a rg ins (% ) P AT (R s m n) P AT m a rg ins (% ) G ea ring (x) E P S (R s /s ha re) P E (x) P /B V (x) R oC E (% ) R oE (% ) E V/E B ITD A (x)
n.m: Not meaningful

L im ited Mar-10 6,375.0 55.5 2,236.1 35.1 0.6 24.2 3.3 0.9 22.9 32.7 1.9

S ak s oft L td Mar-10 1,092.1 15.3 87.5 8.0 n.m 8.6 7.3 n.m 68.8 n.m 6.3

Infinite C om puter S olutions India L td Mar-10 6,646.6 18.6 720.9 10.8 0.2 16.4 10.8 2.9 44.5 37.6 6.4

Mas tek L td. J un-10 7,157.8 14.5 677.2 9.5 0.1 -1.7 n.m 1.3 19.9 22.4 3.3

FINANCIAL PROFILE
Top line drops; operating margin declines in FY10 In FY10, top line declined by 2.4% y-o-y basis reaching ~Rs.6.4 bn mainly as a result of decline in revenues from communication, collaboration and CRM solutions along with mobile media applications on account of decrease in demand and realizations. Operating margin stood at 55.5% in FY10( 56.6% in FY09) as a result of decrease in realizations and increase in employee and administrative costs as percentage of total revenues. On account of decrease in operating profits, increase in depreciation and interest costs along with decease in income from sale of investments and interest income, PAT declined from Rs.2.6 mn in FY09 to Rs.2.2 mn in FY10.

Key Financial Indicators Units Revenue PAT PAT ma rgi ns EBITDA growth PAT growth Gea ri ng RoCE RoE Rs mil li on Rs mil li on Per cent Per cent Per cent Ti mes Per cent Per cent EBITDA ma rgins Per cent

Mar-08
3,164.7 62.1 1,485.7 46.9 88.3 80.4 65.4 1.3 31.3 48.7

Mar-09
6,531.4 56.6 2,642.0 40.5 106.4 88.0 77.8 1.1 33.1 56.1

Mar-10
6,375.0 55.5 2,236.1 35.1 -2.4 -4.3 -15.4 0.6 22.9 32.7

Revenue growth Per cent

INDUSTRY PROFILE
IT services Indian IT services revenues are estimated to be around $34 billion in 2009-10, registering a CAGR of 20 per cent from 2004-05 to 2009-10. During the same period, IT services exports, which accounted for 80 per cent of the revenues, are estimated to have grown at a CAGR of 22 per cent to $27 billion in 2009-10. The industry is highly dependent on the US and UK markets, which contribute to around 75 per cent of export revenues. With IT services deriving a large portion of its revenues from exports, the sector`s profitability is highly correlated to foreign exchange movements. An appreciating rupee is thus a key risk factor. Also, as human resource is the main input in IT services, issues related to non-availability of skilled labor, attrition and wage inflation would also impact Indian IT players.

CRISIL COMPANY REPORT | 2

Geodesic Ltd
ANNUAL RESULTS
Income Statement (Rs million ) Net Sales Operating Income EBITDA EBITDA Margin Depreciation Interest Other Income PBT PAT PAT Margin No. of shares (Mn No.) Earnings per share (EPS) Cash flow (Rs million ) Pre-tax profit Total tax paid Depreciation Change in working capital Cash flow from operating activities Capital Expenditure Investments and others Balance sheet (Rs million ) Equity share capital Reserves and surplus Tangible net worth Deferred tax liablity:|asset| Long-term debt Short-term-debt Total debt Current liabilities Total provisions Total liabilities Gross block Net fixed assets Investments Current assets Receivables Inventories Cash Total assets Ratio Mar-08 1,644.3 -176.5 336.7 -578.3 1,226.2 -825.2 -150.9 Mar-09 2,719.2 -155.4 541.5 -2,152.6 952.7 -1,198.8 -1,668.4 Mar-10 2,150.0 -0.3 802.8 1,427.8 4,380.3 -1,116.0 -1,865.6 Revenue growth (%) EBITDA growth(%) PAT growth(%) EBITDA margins(%) Tax rate (%) PAT margins (%) Dividend payout (%) Dividend per share (Rs) BV (Rs) Return on Equity (%) Return on capital employed (%) Gearing (x) Interest coverage (x) Debt/EBITDA (x) Asset turnover (x) Current ratio (x) Gross current assets (days) Mar-08 88.3 80.4 65.4 62.1 10.7 46.9 3.7 0.6 41.1 48.7 31.3 1.3 18.5 2.6 21.4 17.3 929 Mar-09 106.4 88.0 77.8 56.6 5.5 40.5 5.6 1.6 60.8 56.1 33.1 1.1 5.8 1.7 16.2 12.3 537 Mar-10 -2.4 -4.3 -15.4 55.5 0.0 35.1 7.2 1.8 87.2 32.7 22.9 0.6 5.3 1.5 7.7 4.7 554 Mar-08 3,164.3 3,164.7 1,964.4 62.1 336.7 105.9 122.5 1,642.7 1,485.7 46.9 92.2 16.1 Mar-09 6,530.0 6,531.4 3,693.9 56.6 541.5 641.9 208.7 2,817.6 2,642.0 40.5 92.2 28.7 Mar-10 6,367.3 6,375.0 3,535.6 55.5 802.8 668.4 85.7 2,217.3 2,236.1 35.1 92.2 24.2 Mar-08 202.7 3,583.3 3,785.9 -17.9 5,067.2 0.9 5,068.1 349.1 128.3 9,313.5 251.2 852.2 398.1 8,063.2 1,042.8 0.3 6,360.7 9,313.5 Mar-09 184.4 5,447.6 5,632.0 2.2 6,409.4 36.3 6,445.7 639.7 111.5 12,831.1 556.0 1,136.7 2,066.8 9,627.6 3,002.0 4.5 5,498.8 12,831.1 Mar-10 184.5 7,877.6 8,062.1 -16.9 5,123.4 3.7 5,127.1 1,948.5 108.6 15,229.4 1,106.4 1,596.7 3,932.4 9,700.3 2,099.1 41.2 5,693.3 15,229.4

Cash flow from investing activities Equity raised/(repaid) Debt raised/(repaid) Dividend (incl. tax) Others (incl extraordinaries)

-976.1 417.2 5,036.4 -65.7 -340.6

-2,867.2 5.7 1,377.7 -172.6 -157.8

-2,981.6 2.5 -1,318.6 -188.4 300.5

Cash flow from financing activities Change in cash position Opening cash Closing cash
n.m : Not meaningful;

5,047.3 5,297.4 1,062.9 6,360.7

1,053.0 -861.5 6,360.7 5,498.8

-1,204.0 194.7 5,498.8 5,693.3

QUARTERLY RESULTS
Profit and loss account (Rs million) No of Months Revenue EBITDA Interes t Depreci a ti on PBT PAT Dec-10 3 2,314.8 1,098.0 95.7 127.0 874.9 874.7 100.0 47.4 4.1 5.5 37.8 37.8 % of Rev Dec-09 3 1,562.2 840.6 88.6 120.1 632.0 624.8 100.0 53.8 5.7 7.7 40.5 40.0 % of Rev Sep-10 3 2,229.2 1,067.2 84.9 128.9 853.3 852.4 100.0 47.9 3.8 5.8 38.3 38.2 % of Rev Dec-10 9 6,520.4 3,171.9 271.7 378.9 2,521.0 2,518.5 100.0 48.6 4.2 5.8 38.7 38.6 % of Rev Dec-09 9 4,825.8 2,497.7 274.1 500.4 1,803.0 1,784.9 100.0 51.8 5.7 10.4 37.4 37.0 % of Rev

CRISIL COMPANY REPORT | 3

Geodesic Ltd
FOCUS CHARTS & TABLES
Rs mn 2,500 2,000 1,500 1,000 500 0 Dec-08 Dec-09 Sep-08 Sep-09 Mar-08 Mar-09 Mar-10 Sep-10 Jun-08 Jun-09 Jun-10

Quarterly sales & y-o-y growth

Per cent 160 140 120 100 80 60 40 20 0 -20 -40 Dec-10

Rs mn 1,000 800 600 400 200 0

Quarterly PAT & y-o-y growth

Per cent 140 120 100 80 60 40 20 0 -20 -40 Dec-10 Dec-10 Sep-10 Sep-10

Dec-08

Dec-09

Sep-08

Sep-09

Jun-08

Jun-09

Mar-08

Mar-09

Sales

Sales growth y-o-y (RHS)

Net Profit

Net profit growth y-o-y (RHS)

Rs/share 12 10 8 6 4 2 0 Dec-08

EPS

Per cent 80 70 60 50 40 30 20 10 0

Movement in operating and net margins

Dec-08

Dec-09

Sep-08

Sep-09

Jun-08

Jun-09

Mar-10

Jun-10 Mar-10

Mar-08

Dec-09

Mar-08

Mar-09

Mar-10

Dec-10

Sep-08

Sep-09

Sep-10

Jun-08

Jun-09

Jun-10

OPM

Mar-09

Shareholding Pattern (Per cent) Mar 2010 Jun 2010 Promoter 22.7 22.8 FII 52.6 48.3 DII 1.2 0.8 Others 23.6 28.1

Sep 2010 22.9 39.9 1.2 35.9

Dec 2010 23.2 43.4 1.2 32.2

Board of Directors Director Name Pa nka j Kuma r (Mr.) Kira n Pra ka s h Kulka rni (Mr.) Kris hna n Gopa la Pilla i (Mr.) Pra sha nt Sha ra d Muleka r (Mr.) Niti n Ra m Potda r (Mr.) Vinod Ra jindra na th Sethi (Mr.)

Designation Executive Cha irma n, PromoterDirector, Wholetime Director Promoter-Director, Ma naging Director Non-Executive Director Promoter-Director, Wholetime Director, Executive Director Non-Executive Director Non-Executive Director

Additional Disclosure This report has been sponsored by NSE - Investor Protection Fund Trust (NSEIPFT). Disclaimer This report is based on data publicly available or from sources considered reliable. CRISIL Ltd. (CRISIL) does not represent that it is accurate or complete and hence, it should not be relied upon as such. The data / report is subject to change without any prior notice. Opinions expressed herein are our current opinions as on the date of this report. Nothing in this report constitutes investment, legal, accounting or tax advice or any solicitation, whatsoever. The subscriber / user assume the entire risk of any use made of this data / report. CRISIL especially states that, it has no financial liability whatsoever, to the subscribers / users of this report. This report is for the personal information only of the authorised recipient in India only. This report should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person especially outside India or published or copied in whole or in part, for any purpose. CRISIL is not responsible for any errors and especially states that it has no financial liability whatsoever to the subscribers / users / transmitters / distributors of this report. For information please contact 'Client Servicing' at +91-22-33423561, or via e-mail: clientservicing@crisil.com.

CRISIL COMPANY REPORT | 4

Jun-10

NPM