Expect Rs 100cr revenue from I-Tec in FY12: Sunil HiTech

Vijay Gutte, Director-Finance, Sunil HiTech Engineers expects their new acquisition I-Tec India to add close to Rs 100 crore to the company's revenue in the very first year.

The company is expecting a 15-20% growth in FY12 excluding I-Tec. However, I-Tec is expected to boost growth by another 10-15% in the future.

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Below is the verbatim transcript of his interview with Latha Venkatesh of CNBC-TV18. Also watch the accompanying video.

Q: You have acquired 51% stake in a company called I-Tec India Pvt Ltd, can you tell us how much you paid for it and what does it do, what is the advantage of acquiring this company?

A: I-Tec India is a soil stabilisation company working in road infrastructure. We have given a valuation of Rs 40 crore to the company and Sunil Hi-Tech will be acquiring 51% controlling stake in the company. We will be paying Rs 20 crore 40 lakh to acquire this particular stake.

Q: What was the sales of this company last year and does it bring any debt with it?

A: It is a new company formed just three-four months back which has acquired the rights of exploring this particular technology which is patented technology for SAARC nations. This particular company has not worked till now in India or anywhere else.

Q: So basically you bought the patents for that Rs 20 crore?

A: Yes, we have got the patents for SAARC nations to exclusively explore  these rights all over these nations.

Q: How much do you expect it will boost your revenues in the current year in FY12 itself?

A: I-Tec will definitely be able to add up close to Rs 100 crore in the very first year. I-Tec is already in talks with a lot of the major road companies, which are working on BOT basis in India. There is a positive response because of the quality of roads, which have been provided, less cost in maintenance as well as in the construction. There are a lot of positives happening with all the top clients. So from the second year, definitely it will be able to add up more to the revenues.

Q: Without the inclusion of I-Tec how would your revenues have done in FY12 because last year it was flat, you did about Rs 725 crore and that was what you did in FY10 as well, in the normal course of business will you do better in FY12?

A: Definitely we are expecting a 15-20% growth in FY12 that is without the I-Tec inclusion. With I-Tec definitely it might boost up by another 10-15% that is what we are expecting.