See revival in products business: Cranes Software

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See revival in products business: Cranes Software

Rajeeva Karandikar, Executive Vice President, Cranes Software said that the second quarter (Q2) was definitely looking better than first quarter (Q1). On product business he said, “We are confident and bullish that the product business shows revival."

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Cranes Software See previous management interviews See what other Experts & Brokerages are saying about Cranes Software Cranes Software BSE | NSE 01/01/70 Are Mutual Funds betting on Cranes Software?

Rajeeva Karandikar, Executive Vice President, Cranes Software said that the second quarter (Q2) was definitely looking better than first quarter (Q1). On product business he said, "We are confident and bullish that the product business shows revival."

Here is a verbatim transcript of the exclusive interview with Rajeeva Karandikar on CNBC-TV18. Also watch the accompanying video.

Q: I was just going through a report that says that you have seen sluggish growth in Q1. How is Q2 looking? Is it looking any better than Q1?

A: Q2 is definitely looking better than Q1. The overall business climate has improved. Our focus is in the engineering and scientific domain, which had not been affected so much by the recession. It was basically delays in collecting payments and so on that have affected our Q1. But Q2 is definitely looking good.

Q: The debtor days were standing in the region of 240-250 days. Is there any improvement?

A: Yes, there is a definite improvement because we are not supplying it to the distributors for whom the delay was long and instead tried to channelise it through our own subsidiaries, which exist in the US and Europe. So, that is how we would control the outstanding debt periods.

Q: What about the products business? We saw a big crash in that business in Q1. Do you think that business will not generate too many revenues for you going forward or do you think a revival is possible on that one?

A: No, revival is not just possible, but revival is definite. We have to see only the timing. But revival is definite. Cranes is very different from other companies. It is a shrink wrap product and about the only one that is a shrink wrap product in the scientific and engineering domain markets globally. So, its business is quite different from those of the other IT companies.

The demand for scientific and engineering in R&D is always there. We are confident and bullish that the product business shows revival and improve on and on.

Q: Have you made any recent addition to your client list?

A: The client list is huge. When the shrink wrap product is sold, we don't even actually get to know who all have purchased it, me as a developer. I head the development team. So, the overall client list is very impressive and whether we have got a new client in the last one month or not, we don't keep tabs on that. But business is growing.

Q: Can you put some numbers to your likely revenue growth for FY10?

A: I would not like to put numbers for FY10. But overall the products do contribute about 89-90% of our business and that will continue to be so, because our focus is on products.