Omnitech Q3 net up, eyes inorganic opportunities in US, UK

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Omnitech Q3 net up, eyes inorganic opportunities in US, UK

In an interview with CNBC-TV18, Atul Hemani, MD, Omnitech Info Solutions gave his perspective on the quarter gone by and the road ahead.

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Omnitech Infosolutions See previous management interviews See what other Experts & Brokerages are saying about Omnitech Infosolutions

In an interview with CNBC-TV18, Atul Hemani, MD, Omnitech Info Solutions gave his perspective on the quarter gone by and the road ahead.

Below is a verbatim transcript. Also watch the accompanying video.

Q: Can you take us through your numbers?

A: In the last quarter ended December, we did total sales of Rs 87.99 crore and an EBITDA of Rs 28.82 crore whereas the PAT margin is Rs 15 crore. Year on year the sales is around 40.76% growth, whereas our PAT is 41.64% growth.

Q: But you all did Rs 15 crore even last quarter didn't you in terms of a profit?

A: Yes that's right as far as quarter on quarter there is no significant change, the main reason being that we are on a investment spree where we are hiring the set of people, we are investing into the resources for our next level of growth.

So this particular quarter has not been able to show the exact implications of those growth numbers which are coming in and that you definitely will be able to see coming in a couple of quarters from here now onwards.

Q: So what is the interest load?

A: Roughly around Rs 30 lakh has been added on a quarter basis and that's a temporary phenomenon because that's a quarter where the more kind of holidays in international markets as well as in India market Diwali and Christmas comes in, where the payments get cyclically a little delayed. But otherwise it is well within the control. We are well within the finance costs which are expected.

Q: You have already acquired Avensus in Netherlands, we also believe that you planned a couple of other acquisitions. Could you tell us if anything is moving forward?

A: We already had done enough ground work in territories like United States and also some part of UK. We are looking at the next acquisition to get fructified in the next couple of quarters. Currently we are extremely tied up and getting our current acquisition integrated fully. We expect that in the next couple of quarters we will run parallelly the search of a new company to be acquired and also we will complete the integration process here.

Q: What kind of money have you set aside for these acquisitions? And what could be the average ticket size?

A: Currently we have done an acquisition of the company which is in the terms of topline is around 10 million euro. If you are talking about a warchest we are looking at roughly around USD 20 million kept aside to acquire companies. We continue to look at a company to be acquired in a format where we are looking at earn-out deal so we pay roughly around 60-70% upfront.

So looking at that level we are gunning for a company which is to be acquired in terms of the topline will be anything between USD 25-35 million.