In an interview with CNBC-TV18, KK Singh, CMD, Rolta India, spoke about the company’s growth outlook and the key drivers for its business.
Rolta is seeing traction coming in from such as US and Middle East, Singh said. In growing verticals, the company is focusing on big data analytics, 3D modeling and defense systems, he added.
Also read: Rolta India gets USD 25mn 3D city modelling project
“There is a requirement for battlefield management systems. It is a USD 5 billion contract. We are quoting for it,” he said. “If we get it, it can change the complexion of the company.”
Below is the transcript of the interview.
Q: After good first-quarter earnings, your stock has seen quite a bit of an appreciation between last quarter and now. How do you think 2014 may shape up in terms of revenue generation? What do you expect in segment-wise performance?
A: We are very optimistic about 2014. The overall macro environment has improved. We are seeing uptick in the US, our major market. Even the Indian market - where we are present in different sectors - is doing much better now.
Recently in defense, we got a big opportunity for a battlefield management system. This is a USD 5 billion program for which we are one of the few companies which have been invited to quote.
Big data analytics is something which is giving us encouraging signs all over the world and our customers are very upbeat about this technology and this sector. We have done a very special and high-end strategic tie up with SAP when we give SAP software along with our software as a part of OEM agreement. So through one party, customers get the complete software, whether ours or SAP software. We can walk to the best customers and give them the best solutions.
On the same lines, we have done a tie-up with Hitachi.
Q: If you could just put some numbers to all of this. We want to know what kind of dollar revenue growth you can perhaps sustain for the next couple of quarters.
A: We have given a guidance of 15 percent for this year and we believe that we will meet our guidance and do even slightly better than that. I would leave it at that as this quarter results will come in a few days and we could talk again.
Q: You have given 15 percent guidance for the fiscal. What is it predicated upon? Where are you betting big on in terms of geographies as well as in terms of verticals?
A: The US is a big geography and is giving us good results. Even the Middle East is doing very well for us.
We have started innovative sectors like 3D modelling. 3D modelling is new, we are probably leaders in that. We recently got a contract of about USD 25 million for that and this is a precursor to billions of dollar worth of market, which is opening for 3D modelling.
As I mentioned in big data analytics, we are getting millions of dollars worth of contracts and they are also becoming very important for us. So utilities and oil and gas is doing very well.
Q: Are you seeing more traction coming into defense?
A: Tremendous. Especially, as I mentioned the new requirement for battlefield management systems and that is a USD 5 billion contract. It is mainly software. This is a C2 software we have been providing in this country for almost 20 years, so we have been doing this kind of work for 20 years in defense. We feel very optimistic about that. If we get that, it can change the complexion of the company.
Q: Do you have any inorganic growth possibilities in 2014? You had made that one acquisition last year at AdvizeX Technologies. Any more that you have planned?
A: We have been doing inorganic acquisitions in last few years. We have done at least 10-12 acquisitions over four-five years. Right now, in this year our mantra is consolidation. Consolidation, integration and making the best out of what we have. So I think we will go with that.
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