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Jan 08, 2010, 05.30 PM IST
Engineering services firm, Axis IT&T has announced a meeting of the board of directors on January 12. In an interview with CNBC-TV18, Axis IT&T's Chairman, S Ravinarayanan spoke about the company's plans for the rights issue, its business and gave an outlook on revenues going forward.
The company has a market capitalisation of Rs 167 crore. The stock is buzzing in trade and is up about 40% in the last seven trading sessions.
In an interview with CNBC-TV18, Axis IT&T's Chairman, S Ravinarayanan spoke about the company's business and gave an outlook on revenues going forward.
Here is a verbatim transcript of the interview. Also watch the accompanying video.
Q: Could you give us some clarity on what the quantum will be because your board still has to meet and decide on how much you are looking at raising?
A: It is approximately around Rs 50 crore. It is to meet the acquisition of Cades Digitech Pvt Ltd which we recently acquired and for the working capital and future growth. Probably we will be shortly announcing it. Cades Digitech is more focused on the aero space engineering and Axis is more focused on the heavy engineering side and auto side. And all these industries are doing well at this point of time.
Q: Could you break up the growth that you are seeing from your core business and from this acquisition and also if you share with us the maximum dilution threshold that you would be willing to incur on account of this rights issue?
A: That I probably at this point of time will not be able to tell you. But as far as the growth is concerned in the aerospace sector, as you know, we have among the 12 large aerospace customers, we have almost everybody as our customers including Boeing Airbus, Embraer, and everybody at this point. Either they are our current customers or we are talking to them on final stages of closing some deals with them.
We are working on very prestigious programmes with everybody, and including A-350 on Airbus. The growth is quite robust in that and we have order books full for the next fiscal also and have visibility for the next three years.
Q: Could you talk about Cades Digitech Pvt Ltd. You acquired 51% of the company in September going forth if you plan to complete your acquisition how much money are you looking to raise exactly for completing this acquisition?
A: For completing this acquisition, we probably will require another Rs 50 crore. As far as growth of Cades is concerned, we have to infuse some more funds into them for the working capital. As you know we are increasing the footprint of Cades.
Q: How much uptick of revenues in percentage terms could you gain through this acquisition?
A: Cades would bring additional revenue of close to around for this financial year about Rs 65 crores.
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