Expect Rs 700 cr turnover in FY11: Vakrangee Software

Below is a verbatim transcript of Dinesh Nandwana’s interview with CNBC-TV18’s Reema Tendulkar and Gautam Borker. Also watch accompanying video.

Q: Could you help us with what kind of financials are you looking at for this year?

A: Presently, we have an order book position of Rs 700 crore. We have crossed Rs 500 crore turnover in December. So, we are targeting near about Rs 700 crore of turnover by this year.

Q: That would be quite impressive for the current year. What kind of revenues can we expect in FY12?

A: In this March quarter, we are participating in various e-governance projects. For example, in UP IGRS registration systems, UP PDS there are lots of UID tenders are coming in and then Maharashtra PDS, Maharashtra IGRS, Rajasthan and MP. So, there are various big tickets, big e-governance projects coming and we are participating in that projects in coming quarter.

Q: By when are you expected to complete executing your current order book?

A: Mainly next year.

Q: How do you expect your order book to grow because as you indicted you are bidding quite aggressively for these e-governance projects?

A: We are targeting Rs 2000 crore by this year end.

Q: So which other states are you expecting?

A: We are in the e-governance space only.

Q: So while revenue growth has been quite strong your margins have been decreasing slightly. In FY10 you posted 19%, Q2 you have come down to about 17%. What is the outlook for that?

A: Right now we are bidding in big projects, as a result margins are coming low in the initial period. But by the next year margins will increase. We are targeting Rs 45-50 crore of bottom-line of out Rs 700 crore in this year.