Quintegra eyes FY09 topline at $150 million

New Delhi, May 4: Chennai-based IT products and services company Quintegra Solutions Ltd (QSL) expects a topline of 150 million dollars organically in the financial year ended March 31, 2009 from Rs 100 million in FY08. ''For FY09, Quintegra plans to grow organically at the rate of 50 per cent and therefore the target for the fiscal's organic growth is 150 million dollars,'' said company marketing and strategy head Chandra Kant.

Posting an impressive results in FY08, the company on a consolidated basis has recorded a topline growth of 406.18 per cent for the twelve months ended March 31, 2008. Its consolidated revenue for the twelve months ended March 31, 2008 was Rs 390.30 crore as against Rs 77.10 crore for the corresponding period of the previous year.

The net profit for the company on a consolidated basis for the twelve months ended March 31, 2008 was Rs 35.15 crore as against Rs 7 crore for the same period during the previous year, posting a whopping increase of 402.02 per cent.

Mr Kant attributed the explosive growth of the company to its ability to capitalise on its acquisition and converting the accounts to projects.

After the acquisition of the US-based PA Consultancy last year, the company is now looking at reducing its dependence on the US markets.

The company is primarily looking at Europe for an acquisition to get a client base and local management bandwidth. ''We are actively looking at 4-5 companies. We are open to companies of Indian origin and we are additionally looking at companies with a good second level of leadership. We are focusing on companies that have a similar culture, are growth oriented so that there is an operational fit,'' Mr Kant said.

He added that due diligence was on and an announcement can be expected within the next four months.

The company intends to fund the acquisition through debt, internal accruals and equity. QSL also intends to float a special purpose vehicle (SPV) in Europe for the same.

On the possible impact of dollar revaluation on its revenues, Mr said it was insignificant since its US revenue were matched with US costs. Furthermore, the company had increased its billing for offshore work by 10-12 per cent and at the same time negotiating better rates.

Quintegra as a part of its diversification plans had recently opened its KPO center which now is in its pilot stage with the company focusing on setting up the infrastructure for scalability.

It expects commencement of operation to be announced in Q2 of this year.

The company has also set up its subsidiary in Uganda which has been a part of its developing country strategy that focuses on SAP, Education and Healthcare. ''We first look into the stability of the country, its IT related infrastructure and whether it has a critical mass of industries requiring an ERP solution. Such countries also have a need to country wide healthcare solutions and education solutions,'' Mr Kant said.

He explained that in healthcare, given a robust IT infrastructure, QSL sets up Software as a Service (SaaS) model of its software, which allows it a low cost implementation strategy for healthcare and at the same time allows the Health Ministry to monitor the healthcare status in the country.

''We are now using Uganda as a base for supporting the entire East Africa market,'' he added.

The country-wise exposure for the company is limited at the moment with 90 per cent of its business coming from the US.

However, to correct the skewed concentration of business, Quintegra plans to scale down the revenues originating out of the US to 65 per cent over next three year period with the revenue mix changing from onsite projects to fixed price and offshore projects.

''With our proposed acquisitions, we should garner a footprint into Europe. We are very bullish in India for packaged software, especially in the SaaS model and expect five per cent of our revenues from India,'' Mr Kant said.

UNI