RS Software eyes Rs 21-22cr profit in FY11

In an interview with CNBC-TV18, Rajnit Jain, CMD, RS Software, speaks about the quarterly results and gives his outlook going forward.

Below is a verbatim transcript of his interview with CNBCTV18's Reema Tendulkar and Ekta Batra. Also watch the accompanying video. Q: Your income has gone up around 3% on a quarter-on-quarter (QoQ) basis for you, but the real kicker has come in to the profit figure which is around 30% odd and even your margins have expanded. Can you just take us through the operational efficiencies this quarter and what exactly happen on the bottom-line? A: The results have essentially been driven by focus on strategic cost management. Over the last 14 quarters, we have consistently been able to improve upon our margins and we have been able to work with a better value appreciation from our clients. So, as a result, our bottom-line has improved from 7% over 14 quarters to about 12-13% now. Q: Where are your margins headed, if the past 14 quarters you have managed to increase it, for this year FY11 a ballpark figure and you are expectation for FY12 in terms of margins? A: Our goal is to continue improving. For instance, we are targeting about a 25% growth for the fiscal year and we expect to see a disproportionate growth in our net profits and for the nine months results reported about 26% growth. We have had about 70% growth in our bottom-line already. So, for the full fiscal year, we expect to be in the bandwidth. Q: Can you highlight what you did in terms of the geographical regions this time? I presume majority of your revenues come from the US. What is your expectation going forward and what sort of margins do you generally work with? A: US is our dominant market, in fact we are in a space called electronic payment industry. For instance, every time you use your Visa card it