Quintegra Solutions
Quintegra sees FY08 topline at $100 million
IT products and services company Quintegra Solutions Ltd expects a topline of $100 million (Rs 400 crore) in the financial year ended March 31, 2008 from Rs 76 crore in FY07.
Shankarraman Vaidyanathan, chairman and managing director, Quintegra Solutions, said that the company would achieve organic growth at a 50 per cent peg over the next five years, coupled with a aggressive inorganic growth strategy for Europe.
After the acquisition of US-based PA Consultancy last year, the company achieved EBITDA margins of about 10 per cent, in line with its guidance for 2007-08. Estimated trailing earning per share at the end of financial year 2008 was Rs 14, up from about Rs 3, last year, Vaidyanathan said.
“We are expecting margins to go up to 13 per cent in this financial year 2009,” he said. “We are making the necessary investments required to support our growth over the next five years, including further acquisition plans in Europe.”
In 2007-08, Quintegra derived 95 per cent of its revenues from the US, largely from consulting and services support through its banking, financial services and Insurance (BFSI) practice. The rest of the revenue came in from Europe and the Asia Pacific.
“Reducing our dependence on the US markets will be a key goal in the coming year, and this will be achieved by offshoring a greater proportion of our work out of India. Apart form that, the firm plans to increase its share of consulting from 15 per cent this year to 20 per cent over the next five years,” Vaidyanathan said.
Quintegra currently employs 1,100 people globally as compared to 400 people in FY07. It will recruit 500-750 more people on its offshore services and products teams from India in 2008-09. A third facility spread over 80,000 square feet is being set up in Chennai at a cost of Rs 30 crore that will house about 700 employees. The facility will commence operations in the second quarter of fiscal 2009.
The company has announced wide restructuring in its top echelons as part of reorganising. Murali Subrahmanyam who was head of Merrill Lynch India’s Technology Services will now join the company as chief operating officer.
Chandra Kant has been brought in as head of marketing and strategy while K Srinivasan will look after sales outside the US market. Arun Arumugam will look after the BFSI vertical, while Sunder Athreya will be in charge of all named accounts.
They will also join the board of the company.
Vaidyanathan said the new leadership line-up, with each executive bringing in over 15 years of IT industry and leadership experience, would help the company maintain its growth rate
