Financial Daily from THE HINDU group of publications
Saturday, May 10, 2003
Financial Daily from THE HINDU group of publications Saturday, May 10, 2003 |
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Info-Tech
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Software Blue Star bets on annuity clients for growth Vishwanath Kulkarni
BANGALORE, May 9 SOFTWARE solutions provider Blue Star Infotech Ltd, is betting mainly on its annuity contracts to drive its growth during the current fiscal, said the company's Managing Director, Mr Parmod Bhalla, here. The company has about six multi-year annuity clients, which includes the likes of Hewlett-Packard, York International among others. The company on consolidated basis clocked a net profit and revenues of Rs 16 crore and Rs 79.6 crore respectively for the year ended March 31, 2003, a growth of 26 per cent and 24 per cent respectively over the previous year. For the fiscal 2004, Blue Star Infotech has set a 20 per cent growth target both for revenues and profits. "Growth during the year would come primarily from the annuity accounts, which form a stable base for us," Mr Bhalla told Business Line. The company added about four annuity clients last year. Blue Star Infotech, which had a headcount of close to 600 people currently, expected to add another 400 people over the next 14 months, he added. "We have seen good success with our global R&D and the systems integration practice (SIP) last year and expect it to continue this year as we have a very good pipeline," Mr Bhalla added. GRD and the SIP account for close to 50 per cent of the company's revenues. The company also expected its business application practice to grow as it saw a good traction in that area, especially in the retail and manufacturing segments, Mr Bhalla said. H-P was expected to stay as the single largest client of the company this year. Commenting on its Chinese initiative, Mr Bhalla said it had taken off very well. "The only differentiating factor which gives us an edge against the Chinese is our design capability. We have been able to provide full life-cycle solutions using the design capabilities," Mr Bhalla said. Blue Star, which had a major exposure to the Japanese market, said the SARS scare had not had any impact on its business.
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