Saksoft Limited, a Chennai-based software services company with focus on the banking, financial services and insurance (BFSI) segment, is planning to double its revenues by the end of the 2011-12 financial year, from last year’s Rs 120 crore, through the organic growth route.
“Our plan for the next two-and-a-half years is mostly organic as we see a lot of potential for our horizontal offerings – business intelligence (BI) and data warehousing (DW), web development and testing. During recession, companies are looking at analytical solutions, cloud computing and migrating to open source, and we expect the market to open up in the next couple of months,” NK Subramaniyam, executive director (operations and technology), told Business Standard.
With BFSI becoming the biggest casualty of the economic turmoil, Saksoft had started a derisking exercise by foraying into newer verticals including telecom, healthcare and public sector services in the UK since the last 18 months. Three years ago, close to 90 per cent of the company’s revenues came from BFSI.
“The rate of growth from BFSI, which currently accounts for 60 per cent of our revenues, will not be the same now. We expect telecom to grow at a reasonable rate by acquiring new customers in the US, UK, India and Singapore,” Subramaniyam said, adding the company was looking at a nominal growth on account of recession and expected to end FY10 with revenues of Rs 128-130 crore.
Saksoft scrip plunged 3.12 per cent to end the trade at Rs 69.80 on the BSE on Wednesday, as against the previous close of 72.05. Subramaniyam said in the next two-and-a-half years, the company's revenue mix will stay more or less unchanged as a percentage of its overall revenues -- DW 40 per cent, testing 20 per cent and web development 40 per cent.
Saksoft, which acquired 100 per cent stake in UK-based information management solutions provider Acuma Group for $17 million in 2006, simultaneously with its organic plans, will also look at inorganic growth beginning next year. “At present, we have the capability to grow organically. We will start looking at companies next year. We have decided the areas in which we want to make an acquisition but the actual buyout will happen only in FY12,” Subramaniyam said, while declining to comment further.
As a part of its organic growth plans, Saksoft will add 675 professional to its existing workforce of 325 across its development centres in Chennai, Mumbai, Noida and Manchester. “Of this, over 200 professional will come on board of the now 150-strong Noida centre,” he said.