Wealth maximization has been accepted by the finance managers, because it overcomes the limitations of profit maximization. Wealth maximization means maximizing the net wealth of the company’s share holders. Wealth maximization is possible only when the company pursues policies that would increase the market value of shares of the company. Wealth maximization is based on the concept of cash flows. Cash flows are a reality and not based on any subjective interpretation. On the other hand there are many subjective elements in the concept of profit maximization.
It considers time value of money translates cash flows occurring of different periods into a comparable value of cash flows is considered critically in all decisions as it incorporates the risk associated with the cash flow stream.
About 3i Infotech
3i Infotech is one of the top 4 Indian Software Products Companies.* The company provides software products and IT services (Managed IT Services, Application Software Development & Maintenance, Payment Services, Business Intelligence, IT Consulting, BPO, Document Imaging & Digitization and Data Warehousing) for the Insurance, Banking, Capital Markets, Mutual Funds and Government verticals. The company services customers in over 50 countries across 5 continents.
Consolidated results for the year ended March 31, 2008
1. Revenue for the year was Rs. 1224 crores, representing a year on year growth of 82.4 %, of which organic growth is 37.9% and inorganic growth is 44.5%. 2. Profit after tax and before minority interest which stood at Rs. 183 crores grew by 75.3% over the previous year and represents a net margin of 14.9% 3. Basic Earnings per share (EPS) increased to Rs. 13.40 from Rs. 8.99** in the previous year, representing a growth of 49.1%.
Consolidated results for the quarter ended March 31, 2008
1. Revenue for the quarter was Rs. 352 crores, representing a sequential growth over the...