At a time when software leads the global economic slowdown, Delhi-based IT company Nucleus Software Exports has registered a 118 per cent growth in revenue at Rs 13.4 crore in the first quarter of the current fiscal.
Vishnu R Dusad, managing director, takes an exceptional view on the current adverse situation. He spoke to Utpal K Choudhury about the performance of the company and how the threat from the current slowdown could be converted into an opportunity.
Your Q1 net profit has gone up by 68 per cent against a 118 per cent increase in revenue over the corresponding quarter of the previous year. Is it because of decrease in profit margin over the period?
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We are into a business where both products and services are there in our revenue mix. Our profitability depends on the product revenue.
If we can get the product orders delivered in time then we are able to sustain the profitability. But if for some reason the product order is shifted to the next quarter, then our profitability for that quarter comes down. Yet our intention is to maintain a consistency in our profitability from quarter to quarter.
What is your projection for this year?
We are expecting at least 100 per cent growth both in terms of revenue as well as profit and we are very confident about it. We have unique product mix. On top of that we are specialised in a particular domain, which is banking and financial services.
With that background we will be able to deliver much better value for money to our customers. The other important factor is that our exposure to the US is less than five per cent. So combining these factors we are very confident that we will achieve our target.
For this financial year we will have revenue of somewhere around Rs 44 crore, out of which around Rs 17 crore we have already achieved in the last four months and the balance is our order book position so far. We, in fact, expecting more