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.
Following are the key highlights of the conference call conducted by Infotech Enterprises after its latest quarterly results.
“We have seen volume growth and stable margins inspite of adverse macro-economic challenges”, said BVR Mohan Reddy during conference Call
Brief us about your Q1 FY13 financials?
Infotech Enterprises Ltd. has reported first quarter financial results for the period ended June 30, 2012.
Revenue for the quarter stood at Rs4563.8mn, a YoY Growth of 31.6%. Net profit stood at Rs647mn for the quarter, an increase of 141% YoY.
Operating profit stood at Rs851.8mn.
Do you have any acquisition plans?
Inorganic growth plans are always there. We will continue to pursue opportunities in the M&A space going forward.
Share your Business Highlights for Q1 FY13?
Our business performance continues to be robust. We have seen volume growth and stable margins inspite of adverse macro-economic challenges around the world
During the quarter, the company added 17 new customers. The highest manpower additions this quarter is a reflection of our confidence we have in our business.
Strong order pipeline and continuous focus on key margin drivers like efficient onsite-offsite-offshore mix, right sizing the pyramid and improving productivity and utilisation will drive operating margins in the coming quarters.
Private equity firm Carlyle bought 9.96% stake in secondary market, which is a strong endorsement of our company’s long-term growth.
The salary review has been completed and implemented effective April for 100% of eligible staff globally and all arrears paid in Q1 FY13.
What are your expansion plans for FY13?
Our order pipeline continues to be robust and we are confident of growing our business more than the industry average.
NASSCOM has pegged the industry average at 11-14% for FY13. It will be more than 14% for our company.
What are your plans globally?
We are improving our footprint in East Asia. We have opened our office in Australia and Florida. We will open offices in South Korea and China as well.
What is your revenue mix?
About 62.5% of our revenues come from North America, 25.7% from Europe and remaining 11.8% of our revenues come from the APAC region.
What kind of hiring are you looking at?
The company witnessed gross additions of 915 people during Q1 FY13, while the net addition stood at 464, which is the highest in the last five quarters.
The voluntary attrition rate stood at 14.3% (annualised).
The company’s total headcount is about 9,800 people.
What is your current cash level?
Cash balances, including liquid investments are at Rs 4.82bn.