| The company, in which the US-based jet engines maker Pratt & Whitney has a 15 per cent stake, had reported relatively flat growth last year. |
| It expects to notch up revenues in the region of about Rs 285 crore in the current fiscal. |
| The sharp growth in the topline is expected to be anchored through its engineering, manufacturing and industrial product design (EMI) division which is expected to contribute close to $40 million in the current year, according to a senior official of the company. |
| The other division of the company, UTG or Utilities, Transport and Government, is expected to chip in with another $22 million odd. |
| Speaking to Business Standard, BVR Mohan Reddy, chairman and managing director of Infotech said the company's restructuring exercise in the beginning of the fiscal was paying dividends. |
| The major realignment of the organisation. saw Infotech move away from having lines of businesses and the focus shifted to customers and Infotech verticalised itself into the two major verticals of EMI and UTG. |
| In the most recent quarter the EMI vertical contributed close to two thirds of the company's turnover and existing relationships with Bombardier, and the existing non-Pratt business with United Technologies Group (Pratt & Whitney's is a division of the United Technology Group) expanded. |
| Revenue from this vertical grew by close to 36 per cent on a sequential basis. In the second quarter the company reported a sequential quarter growth of 18.1 per cent at Rs 68.4 crore compared to Rs 57.9 crore for the first quarter. Margins for the company were higher at 18 per cent Q2 compared to 13.7 per cent in Q1. |
| In the UTG vertical Infotech which is primarily focused on the geospatial data services and geospatial technology services, revenues were marginally lower compared to Q1. |
| This was the result of a sharp reduction in revenues from one of its big clients but of some solace to the company has been its relationship with British Telecom in the UTG vertical, which according to Reddy was showing signs of strong expansion. |
| "It was actually the expansion of the British Telecom revenue that is a reflection of the positive trend that we have seen with our European subsidiary making profits for the last quarter," Reddy said at the most recent conference call. |
| Infotech is also expanding its software service offerings and has recently started doing package implementations of enterprise applications like SAP for its manufacturing clients. |
| Package implementation is a lucrative area for Indian IT service providers and the Big 4 of the Indian IT industry today have a substantial portion of their revenues coming in through this service. |
| "We are expanding our portfolio carefully into related areas like package implementation, tech publishing and tooling design. Even in the package implementation space we have restricted ourselves to implementing only SAP. This is a learning phase and we do not want to spread ourselves thin," Reddy says. |
| Going ahead, Reddy expects Infotech to earn revenues of about $100 million in 2005-06. Some of this revenue growth will come in from the emerging opportunity of enterprise application integration or EAI. |
| "There are enough enterprise application packages (packages like ERP, CRM, SCM) that have been implemented and integrated with each other. But, importantly GIS (geographical information systems) applications have not been integrated with other enterprise applications and we think there is a huge opportunity there for companies like ours." |
Explore Business Standard