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Rolta eyes small buyouts over next two quarters

Mumbai, India: Rolta India – a geospatial solution provider, is looking at a couple of small acquisitions in the GIS space–these will be small in size–in the range of USD 2-10 million, according to Hiranya Ashar, Director (Finance) and CFO, Rolta.

The acquisitions are likely to be concluded over the next two quarters, he said, adding “they will be funded through internal accruals.” At present, there are no fund-raising plans. The company, however, has an enabling resolution to raise USD 150 million, he added.

In second quarter, Rolta’s consolidated revenue rose 17.5 per cent at INR 441.15-crore (USD 96.2 million) as against INR 375.56-crore in the year-ago period, while its consolidated net profit (excluding exceptional gain) increased 24.4 per cent to INR 78.11 crore as against INR 62.79-crore in the year-ago period.

“Q2 has been a reasonably good quarter for us with our geospatial segment driving growth,” Ashar said. Its IT business has also picked up with the US economy on recovery. “Europe is still slow but most of our business is in the US,” he added.

On its engineering business, Ashar said it was growing at 10-12 per cent, while its other businesses were growing at 15-20 per cent. “It will take a few more quarters for our engineering business to kick-in with the same kind of growth,” he continued.

On the future outlook, Ashar said it was good and the company is poised to grow at 12-15 per cent in both its top and bottom lines.

Source: www.tradingmarkets.com