You are right - the significant portion of income generated from foreign based operations and NOLs for US operations provide low tax rates. The company foresees 6-8% overall tax rate in 2010 fiscal year and 8-12% in the few years after that until the tax holiday in India expires by 2014. Then, for the next five years, they pay 50% of normal tax rates in India. This is as much visibility that we have on this topic and in my mind - it is sufficient.
In the big picture, if the company expands its revenues and operating income as planned, the gradual increase in taxes will not matter a huge lot.
Ebix: Building a Wide Moat [View article]
In the big picture, if the company expands its revenues and operating income as planned, the gradual increase in taxes will not matter a huge lot.