Infotech Enterprises is looking at overseas acquisitions as part of its growth strategy. The GIS, engineering and IT services company, having a cash and bank balance of Rs 38 crore as on September 30, 2002, aims at becoming a $100-million company in revenue terms by 2005-06.
`We are looking at companies that can bring fresh business and new clients. Client acquisition is the biggest rationale for acquisition, ` Sudhir Sethi, president and executive director, Infotech Enterprises, said of the company`s acquisition plans at an investor meet held on Friday in Mumbai.
Infotech Enterprises already has subsidiaries in the US, UK and Europe.
`We are looking at a revenue growth of 40 per cent over the next few years, ` said BVR Mohan Reddy, chairman and managing director, of the company’s growth targets.
Q2 FY03 results
Infotech Enterprises reported a net profit of Rs 6.52 crore for the second quarter ended September 30, 2002, compared to Rs 5.65 crore in the quarter ended September 2001. Total income increased from Rs 23.79 crore in the year-ago period to Rs 30.64 crore this year.
Infotech Enterprises expects its subsidiaries to show considerable improvement in H2 FY2003 over that in H1 FY2003. The subsidiaries are expected to significantly improve their profitability (loss of Rs 4.55 crore in H1 FY2003). Further, investments in services, verticals and people will start showing tangible returns resulting in improved performance
The management reiterated its revenue guidance for the current financial year 2002-03. It expects the company to report Rs 175 crore of revenues and Rs 19-21 crore in net profit for the current financial year. Based on the current business outlook, Infotech Enterprises believes that it will manage to reduce losses of its subsidiaries and turn profitable in the second half of current fiscal.