See 12-15% top-line growth in current fiscal: Rolta India

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See 12-15% top-line growth in current fiscal: Rolta India

In an interview to CNBC-TV18, KK Singh, chairman and managing director of Rolta says, for this year (July 2011-June 2012), the company has given a guidance of 12-15% top-line growth.

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Rolta India has reported a sales turnover of Rs 400.20 crore and a net profit of Rs 80.78 crore for the quarter ended September 2011. This is the first quarter for the company.
 
For the quarter ended Jun 2011, the sales turnover was Rs 393.46 crore and net profit was Rs 102.96 crore.

In an interview to CNBC-TV18, KK Singh, chairman and managing director of Rolta says, for this year (July 2011-June 2012), the company has given a guidance of 12-15% top-line growth. "We will be able to achieve that."

Below is the edited transcript of his interview. Also watch the accompanying video.

Q: How volume and pricing has been? What your guidance would possibly be going forward for this fiscal?

A: This is our first quarter. So, typically our first quarter is in this growth level, only 2-3%. As we go forward, we get that momentum.

Last year also we got almost about 16% top-line growth. For this year, we have given a guidance of 12-15%. We will be able to achieve that. That is looking quite achievable.

I believe that we are going quite well in all the sectors like defence and homeland securities. GIS is a major area. We are doing well in those areas.

In IT, we are reasonably doing well in spite of the climate in Europe and America. Especially in the engineering side, we are doing pretty well because of our business intelligence solutions which we have introduced based on our own IP. So that is doing well.

I think, overall, we are satisfied that this quarter we could get almost about 14% year-on-year growth, 2% on a sequential basis. But, as we go forward, I believe that we will get the momentum.

Q: There was some amount of disappointment on your margins as well. How much of it has come courtesy of forex loss and how much of it has come courtesy the wage hike?

A: The net margins went down to about Rs 62 crore versus Rs 75 crore for the last year. On a sequential basis, they came down from Rs 89 crore. So, this Rs 26 crore difference is almost the forex loss, mark-to-market provided as per AS-11. We will be providing them in three quarters as per the AS-11 norms up to the March 12 quarter. And they have been provided into depreciation or into other expenses.

This is because of the FCCB which we have on our books that is the major reason. FCCB has been used mainly for acquisitions. So that is where it has gone into other expenses. And a portion of that has gone into depreciation. So that is I think the major portion. If you add that, you will find that our profit this quarter is almost flat compared to last quarter.

We also gave wage hike in this quarter. That was about 150 basis points that would have been cost into that. That has been absorbed. In fact it has not hit too badly there. So, overall, except for mark-to-market forex losses, we are not in a bad situation.

Q: Can you give us a sense of how the order book is going to pan out?

A: In our traditional sectors - defence and homeland security-we are right now in advance stages of large deals. That should be materialising in next one or two quarters.

In Middle East, very large GIS related business should be panning out. In the business intelligence and OneView related business, we are looking into US and Middle East. That should also pan out very well into the coming quarters. So, we are quite bullish that we will be able to meet or exceed our guidance.