Omnitech expects 30% YoY growth in FY09

Atul Hemani, MD, Omnitech Infosolutions said the jump in the bottomline is due to the product mix. “With this right product mix, we should be in a position to get us the same parity of margin throughout the year. We believe that we should be in a position to look at around 30% YoY growth in FY09.”

Excerpts from CNBC-TV18’s exclusive interview with Atul Hemani:

Q: Have you increased your margins because the net sales? If you look at a QoQ basis, it has been absolutely the same but there has just been a bit of increase in the net profit.

A: We have got a jump in our bottomline thanks to our product mix. It has been an endeavor at Omnitech to provide high-end technology services in the area of infrastructure management services and business continuity services (BCP) where we have better margins. That is bringing the overall jump compared to the revenue growth.

Q: What was the margin picture? Last quarter, it was 27%. Is it still in the high 20s?

A: Yes, it is. If you look at the Profit After Tax (PAT), it has got around 21% compared to last year’s 19%.

Q: Any guidance for the financial year and would you maintain these kind of margins at about 27-28%?

A: Yes, we see no challenges because we have a fairly decent order book position and also have a long-term sustained contract, mainly in BCP where the contracts are around seven years timeframe. In remote infrastructure management services, the contracts are of anything between three-five years.

With this right product mix, we should be in a position to get us the same parity of margin throughout the year. We believe that we should be in a position to look at around 30% YoY growth.