The Hindu Business Line : Polaris retail software launch positive for margins

Polaris Software’s subsidiary Polaris Retail’s launch of a retail product software may open a new revenue stream in the domestic market for the company. There are several positives with regard to the positioning of this product. It takes just a day for deployment and is said to come with online and localised training to enable quicker usage.

WIDE RANGE

The product also caters to a wide range of retail formats and enables automation of most retail functions. Together, these factors drastically reduce implementation and customisation time for retail clients. Such deals are usually priced based on usage levels. After the initial investment on building the product, Polaris may see improved margins as well on this count. Lower manpower costs will also be another positive in this regard.

The organised retail system is a rapidly growing one in India. Polaris, with existing clientele here, may be well placed to enhance domestic client base.

Polaris’ non-BFSI verticals, prominent among them being retail, contribute 11 per cent of its revenues.

REDUCED BFSI

A scale-up here may mean reduced dependence on the troubled BFSI segment for the company. The company has been evolving products for delivery on platforms such as SaaS (software as a service). SOA (service oriented architecture) has been another focus area for the company. Products in this regard may improve margins over the long run.

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