With significant intellectual property-based products in its kitty, Rolta India Ltd is confident of a 20% revenue growth...
With significant intellectual property-based products in its kitty, Rolta India Ltd is confident of a 20% revenue growth for 2014-15 (Apr-Mar) against its earlier projection of 15%.
“For the full year, we have given guidance of 15% revenue growth; now we are looking for 20% for full year,” Chairman and Managing Director K.K. Singh said in an interview with Cogencis.
Rolta India had reported a consolidated net profit of 2.87 bln rupees on 25 bln rupees of sales for 2013-14.
Singh is bullish for the next fiscal, too, expecting a 15-20% sales growth led by the niche and go-to-market products pipeline.
The company is well placed to achieve the anticipated sales growth, which is higher than the industry body, National Association of Software and Services Companies projection of 12-14%, he said.
“Key drivers for the growth fundamentally are our IP solutions. These solutions are very much liked by the customers. So, IP driven technology is
the key for our growth,” Singh said.
“We are getting more and more IP-related solutions. That is how we are able to beat the competition… We are able to maintain the margins and
expand our markets,” he added.
Rolta India is in to development of heavy industry-focused information technology products and services in the area of engineering designing, geo-spatial technologies, big data analytics, mobile and IT consulting.
The key segments for the company are defence, oil and gas and power.
Singh said Rolta India’s deal pipeline was very strong, and the defence segment will be very large, if it wins the Battlefield Management System tender floated by the Ministry of Defence.
“Deal pipeline is very strong; the pipeline would be around 12,000 crore (120 bln)… I am not including that large defence order, if that is included, it will be very large,” he said.
In November 2013, the Army had issued expressions of interest to 14 Indian companies, including Rolta India, Larsen & Toubro and Wipro Ltd, for developing a Battlefield Management System.
The cost, including hardware, software and services, is estimated at 400-500 bln rupees–ten times that of Rolta India’s annual revenue. The company has tied up with Bharat Electronics Ltd–a public-sector electronics company that has traditionally provided most of India’s hi-tech defence equipment–to bid for this contract.
“We are well placed to bag this order,” Singh said. As on Dec 31, Rolta India’s order book stood at 32 bln rupees.
EYE ON ANALYTICS
Apart from the defence sector, Rolta India is looking to tap opportunities in big data analytics and geospatial information systems, Singh said.
“We should be able to grow well for coming year and subsequent years. We are also looking forward in the areas where we are focused… like big data analytics and GIS-related technologies,” he said.