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Rolta to double headcount; sees 30% growth
'We are looking at small overseas companies in niche areas and are in a position to raise funds for this if necessary. We are also open to getting a partner or equity investor'.
ROLTA India will be doubling its headcount in 2005-06 as it expects a revenue growth of 30 per cent, said Mr K.K. Singh, its Chairman and Managing Director.
The company currently has around 3,000 employees and is adding around 400 employees every month, said Mr Singh.
The current fiscal, ending in June 2005 for Rolta, would see a growth of around 20 per cent over the previous fiscal, he said.
The company reported net sales of Rs 292 crore for 2003-04. Net sales for the first half of the current year stood at Rs 155 crore.
Rolta India is also keeping an eye out for viable international acquisitions and could consider making an ADR/GDR issue to create currency for it.
"We are looking at small overseas companies in niche areas, and are in a position to raise funds for this if necessary," said Mr Singh without elaborating on any time schedule for the ADR/GDR plans.
Rolta India, which is 49 per cent owned by the promoters, (51 per cent is with the public) is also open to getting a partner or equity investor, in principle, said Mr Singh.
"But we feel we are undervalued in the market currently by at least half. We will only take steps if the valuations are right," he said.
"Also, for domestic requirements, we have enough reserves, amounting to around Rs 500 crore", he added.
The company, which is in the CAD/CAM and geographical information services (GIS) space, is also betting heavily on plant design automation services.
"This is the automated portion of engineering which was otherwise a drawing board activity, the design cycle is considerably shortened on account of it and we feel there is a huge demand for this service going ahead," said Mr Singh.
In the GIS segment, the company has won contracts from the Dubai municipality for mapping the city, as well as from three Indian municipalities - Allahabad, Bareilly and Gorakhpur for purposes of land records and property mapping for revenue purposes.
The company's early association with the Union Government andits departments such as defence or the Survey of India continue to remain strong, according to Mr Singh who says the company has 70 per cent of the Indian GIS market.
"We are also have strong clients in the telecom and utilities space," he said. The company has clients such as Fiji Telecom.
Seventy per cent of Rolta's revenues are from the domestic market.
"Our focus on the Indian market is very strong, we have emphasised to ourselves that one cannot do anything internationally which cannot be done locally," said Mr. Singh.
Exports rose 100 per cent over 2003-04, and the domestic business is profitable, said Mr Singh.
Q2 net up 30 pc
The company reported a 30.4-per cent growth in net profit for the second quarter ended December 31, 2004.
Net profit for the second quarter stood at Rs 26.21 crore against Rs 20.11 crore for the corresponding period of the previous year. Total revenues rose 39.2 per cent to Rs 86.36 crore (Rs 62.06 crore).
Net profit for the half-year ended December 31, 2004, amounted to Rs 51.33 crore (Rs 42.5 crore).
Total income was Rs 161.92 crore (Rs 127.28 crore), 27.2 per cent higher. |
