BVR Mohan Reddy, Chairman and Managing Director, Infotech Enterprises holds a graduate degree in Mechanical Engineering from College of Engineering, Kakinada (1971) and postgraduate degrees from IIT, Kanpur, India (1973) and University of Michigan, Ann Arbor, USA (1977). Reddy was associated with companies in India for over two decades before establishing Infotech Enterprises in 1991. Reddy has been a member of the NASSCOM Executive Council since 2003, and has also served as the Chairman of Confederation of Indian Industry (CII) Southern Region, from 2008-09. He is associated with councils of various academic and industry forums and has led several initiatives for the benefit of the industry. In March 2007, Reddy is passionate about the company’s social responsibilities and has established the Infotech Enterprises Charitable Trust (IECT).
Infotech Enterprises is a leading Global Engineering services company. It provides services to a wide range of industries - Aerospace, Rail, Automotive, Marine, Energy, Oil & Gas, Plant Engineering, Consumer Electronics, Medical Electronics, Semiconductor, Telecom (Manufacturers) Computing industries, Utilities, Telecom (operators) and Government. Infotech has a distinctive business model: “Global Delivery and Collaborative Engineering”. The company operates “Centres of Excellence” for leaders in key industries. Infotech combines the extensive engineering design and solutions capability based in India with global delivery through offices worldwide providing local customer interface and project management.
Yash Ved of IIFL provides the highlights of a media interaction where BVR Mohan Reddy says “We have increased the ticket size for acquisitions to $30mn from what used to be $10mn.”
Comment on your Q4 Performance?
In spite of the macro economic uncertainty around the globe, we had a very good year in line with our expectations. We posted robust growth and higher profits because of customer centricity and long term growth strategy.
The company has been re-organized into four business units to ensure better focus on target markets and accelerated growth.
This re-organization has created leadership opportunities for several senior associates leading to more entrepreneurial ownership, career development and greater motivation. This re-organization will bring momentum to growth plans and will help achieve our future goals sooner.
We have also rolled out organization-wide initiatives for strengthening our execution processes, sales processes and information systems. These initiatives have ensured that we build a scalable and sustainable organization for the future.
We started FY13 with a strong order pipeline and a large order backlog. We are confident of an equally good FY13.
Brief us about your re-organisation process?
The Company has been re-aligned into four business units (BU) effective April 1, 2012, which reflects the markets we address and the solutions we provide. These BUs are:
Aerospace (AERO): Providing product engineering solutions to aerospace customers
Heavy Equipment, Transportation & HiTech (HTH): Providing product and process engineering solutions to non-Aerospace customers in manufacturing, HiTech and process engineering industries
Utilities Telecom (UT): Providing network engineering and related solutions to Telecom and Utility customers and their suppliers
Content (C): Providing end-to-end content engineering solutions to a range of industries including mining, energy and content publishing.
Brief us about your management changes?
Krishna Bodanapu has been promoted as President and Chief Operating Officer (COO), while John Renard will provide the leadership for two business Units – UT & C.
Rajendra Velagapudi will head the newly created aerospace business unit and Anand Parameswaran will head the newly created HTH business unit.
Brief us about your new business pursuits & service offerings?
The company has added 16 customers added during the quarter, 7 in N&CE and 9 in ENGG.
The company has opened an office in Gothenburg (Sweden) to increase our focus on Scandinavia and the oil and gas market
The company has increased traction in Asia Pacific regions especially around transportation and heavy engineering areas.
Brief us about your financials?
The Profit after tax for the quarter was at Rs.698mn, an increase of 106% over previous quarter.
The revenue for the quarter was at Rs. 4,173mn, while Operating profit stood at Rs. 827mn.
The Company sustained the improved Operating margin.
During Q4, OPM (at 19.8%) further improved by 20 bps over Q3 in real terms, due to operational excellence initiatives. There was adverse exchange impact of 100 bps in Q4 compared to Q3.
Comment on your Capex for the quarter?
Our Capex for the quarter was at Rs. 143mn.
What is your current cash level?
Our current cash level stands at Rs4.79bn.
Are you looking for any acquisition?
We have increased the ticket size for acquisitions to $30mn from what used to be $10mn.