"We have a strong focus on bottom line growth. We are very selective in choosing the right projects which will not only add to the revenue, but will enhance profit margins," said Sunil Bhatia, CEO & MD, Blue Star Infotech in an interview with myiris.com.
1. Blue Star Infotech PAT witnessed a strong growth of 33.6% during the quarter. How do you see your performance for the coming quarter?
Our PAT for the quarter grew by 33.6% while our net profits for the year end FY 2014-15 have sharply risen by 22%. We have a strong focus on bottom line growth. We are very selective in choosing the right projects which will not only add to the revenue, but will enhance profit margins. As a conscious decision, we closed on a few un-remunerative business last year which were eroding our profitability. A strong bottom line growth is very much required for sustainable growth of the organization.
2. The company's revenue moved up 4.59% sequentially. How do you see revenue growth going forward?
While we are focusing both on revenue and profit growth and we are also confident of positive future growth. However we will not compromise on bottom line growth and will not invest in projects only for topline growth. We are focusing on quality accounts and quality customers for sustainable long term development. We aim to be a solution led, customer-centric leading IT service provider.
3. The company entered into contract with payroll service provider in US. Do you have any further expansion plans globally?
The customer is one of the leading payroll service providers in US, primarily to small and medium enterprises. This is an existing client of ours and we made further inroads into the accounts. This has been a very successful engagement and the revenue crossed million dollar mark within a short span of 6 months. We are providing product development, testing, Business Intelligence/Analytics solutions.
4. Could you tell us about your capex and expansion plans?
We will continue to invest in solutions and 2-4% of our revenues are invested in R&D towards building solutions which would be apt for digital era and will give us an edge in the market. We are also investing in training & development of our human resources to re-skill them and make them future ready for the digital market.
Geography wise, we don't have any expansion plans right now. We are present in US, UK, Singapore, Malaysia and India and we will keep focusing on these markets.
5. Would you like to convey any message to the shareholders of the company?
The company is poised for a sustainable future growth. We are confident that the steps we have taken and the changes implemented will take the organization to newer heights. I would like to thank all stakeholders for bestowing their trust in us.
