Polaris aims to maintain 10% QoQ growth for nxt 4 qtrs

Excerpts from R Srikanth’s  speech at the company press conference:

"It’s good to see that we have a good profit growth over the last year. We grew 87% on the profit growth from Rs 14 crore to the Rs 27 crore level and that is the part of our overall strategy where we drive our business towards consulting products and services business and we believe the integrated model is going to the better model and it will be able to have more resistance with the change in the market economy and market shift and this will enable us to get into new markets as well for the investment which we have done over the last few years, now we can be leveraging it and in the current quarter inspite of the product business and some of the shifting of the product deals, still we are able to grow 11% in rupee terms and 6% in dollar terms.

In some quarters we can get good returns on the product business and in some quarters we can get good returns in the services business and that’s where the balance can happen on an annualized basis and earlier our business model was annually-based and not quarterly-based. So sometimes the quarter would be better and sometimes the quarter may not be so. So we are tracking ourselves against the YoY basis and not QoQ basis.

So last year our EPS was close to Rs 7.4 and this year we are looking at our EPS should grow over 60%-70% from Rs 7.4 to Rs 12.5 to Rs 12.9. So our estimated number for the EPS of this year, would be Rs 12.5 to at least Rs 12.9. That’s what we are expecting and this is again in the line of overall direction where we looked at our growth engine first after 2003, we wanted to look at a growth as a major target and second was profitable growth and last four quarters we have done a 10% growth QoQ. We will do again 10% quarter growth in CQGR (Compounded Quarterly Growth Rate) terms, that was a profitable growth and now growth emerging for the next four quarters is the profits growth and we have a visibility that we can still maintain a 10% QoQ growth for the next four quarters as well.

So the systems are coming in place, and so is the operational infrastructure, the IT and Sales infrastructure are also coming in place and we have a very good internal automation."