Speaking to CNBC-TV18, Chintam said the company is looking at acquisitions to aid its growth. The acquisitions will be funded either via Qualified Institutional Placement (QIP) or by raising equity.
Niranjan Chintam, Founder and Chairman of Kellton Tech is confident of maintaining the company’s FY16 revenue growth guideline of Rs 600 crore. The company is aiming for Rs 2000 crore revenue growth in the next three years.
Speaking to CNBC-TV18, Chintam said the company is looking at acquisitions to aid its growth. The acquisitions will be funded either via Qualified Institutional Placement (QIP) or by raising equity, he said adding that the copmpany is planning to raise upto Rs 100-120 crore in the current year.
Main focus is on developing the Social, Mobile, Analytics, Cloud (SMAC) business, he said.
Chintam expects 15-16 percent growth from the organic business in FY16 and profit after tax (PAT) of 10-11 percent next year.
The company, which is listed on BSE currently, has initiated the process to start trading on NSE.
Below is the transcript of Niranjan Chintam’s interview with Nigel D’souza and Reema Tendulkar on CNBC-TV18.
Nigel: There was the launch of the M-Sehat, that is the healthcare mobile application in Uttar Pradesh (UP). What is the scope, what is the order size and do you see it expanding to other states as well?
A: The M-Sehat is an initiative by State Innovations in Family Planning Services Project Agency (SIFPSA) which is a government agency of UP state. Right now, the order size is about Rs 28 crore. We expect that currently it is being rolled out in five districts of UP and they are seeing a lot of success there.
We expect that this will be rolled out to the other 70 districts of UP. The time horizon for that is probably the next fiscal year from the government point of view. So, we are rolling out close to 15,000 mobile devices which is a combination of smartphones as well as pad like devices.
Reema: Do you maintain your revenue guidance that you had earlier given us, Rs 600 crore in FY16 as well as Rs 2,000 crore in the next three years? Is that on track or you are likely to beat it?
A: That is correct. We are on track at this time. We want to achieve what we have targeted and I think we will achieve that very easily. If we beat it, that will be a bonus. Hopefully we will know that as we go on.
At this time, we are on target to achieve that Rs 100 million or Rs 650 crore as well as the Rs 2,000 crore that we have projected for the next three years.
Nigel: How much of it is going to come via inorganic activity?
A: Organic activity is going to be about 15 percent. That is what we are targeting to grow year-on-year. The inorganic activity is going to fill in the rest. So, the numbers, we cannot tell you exactly right now, but it is in line with what we want to achieve.
Nigel: So, you are going to be looking for acquisitions going ahead?
A: Absolutely, we are always on the look for acquisitions. There is a mandate that we have given to multiple bankers that there is covering to make sure we have the right fit and to identify the targets that we have given in the specific industry as well as the technology verticals that we have chosen for ourselves, which is that (iSMAC) which is nothing but the internet of things (IOT), social, mobile, analytics and cloud which is what we want to do; excel in as well as to round it off.