As the revenue inflows have been flat from the recent independent acquired companies, Polaris is firming up plans to shore up revenue growth in those firms. This was stated by Arun Jain, founder CEO of Chennai-based mid-tier financial services technology product company, Polaris Software Lab, while declaring 2010 third-quarter financial results of the company recently. Polaris posted a profit after tax (PAT) of Rs 50.13 crore and total revenue of Rs 399.90 crore for the December-ended third-quarter of 2010 with flat revenue inflows from the recently acquired companies that are held as separate subsidiaries by the parent company.
In the last 2 years, Polaris widened its inorganic growth portfolio by acquiring 3 new companies including Lasersoft, SEEC and Indigo TX. Jain said cost and revenues are neutral for the acquired companies in December-ended quarter of 2010. “In the current quarter, Lasersoft operating in banking software product domain is participating in 7 to 8 deals with a funnel size of Rs 200 crore. Insurance financial services firm, SEEC is in the process of bagging an Australian-based insurance firm contract. Indigo TX—a capital wealth management company catering to IT needs of stock market brokerages is close to clinching a capital market deal in Bangladesh and a bank deal in Sri Lanka is on cards. The traction from the accounts would be visible in 3 to 4 quarters from now”, he said on plans to gain traction in revenue growth of subsidiaries. Regarding the cash and cash equivalents that stood at Rs 508 crore with the gross addition of Rs 81 crore in the December ending quarter of 2010, Polaris CEO ruled out the option of shares buyback with surplus cash and said the cash deployment would be made in acquiring new companies.
