Bangalore : What does a company that's among the leading IT firms in the country with revenues set to cross Rs 320 crore (2000-01 projections) do to beat the industry growth average? Obviously, go in for strategic acquisitions in order to grow faster. That's what Mascot Systems is poised to do. Hived off from iGATE Capital Corporation/Mastek Corporation, the half-billion dollar US software major in January 2000, the company which is headquartered in Bangalore started off with a rich inheritance that included the parent's entire solutions business, cutting-edge technologies and several Fortune 500 customers.Which is why, despite the fact that its stock is quoting at roughly 40 per cent discount levels from its Rs 480 July initial public offering, Mascot managing director V Chandrasekaran doesn't seem to be a worried man.
"Two quarters is too early for the market to judge us," he told The Financial Express. The company posted a quarter-on-quarter revenue growth of 16.4 per cent to Rs 75.5 in Q2 2000-01 ending September 30 (Rs 64.9 in the first quarter of this year) and profit after tax up 45 per cent to Rs 9.4 crore (Rs 6.5 crore). And with all the ingredients for industry-beating growth in place -- new campuses coming up at Bangalore, Pune and Chennai, projected capital investments to the tune of over Rs 30 crore and an eye out for strategic acquisitions -- it's pretty obvious that ambitious growth is what Mr Chandrasekaran is aiming to achieve. Without naming specific acquisition targets, he said the company would look for a technology buy and a consultancy firm, or do some strategic shopping to match a customer acquisition. And he's banking on his stock to bankroll these expeditions. The aim: to surpass the projected 50-60 per cent industry growth rate.
Mascot has identified finance and service segments as its two keygrowth drivers.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.