In an interview with Meena Konar of Myiris.com, Sunil Bhatia, CEO & MD, Blue Star Infotech says, "We will continue with our growth pace adding new accounts as well strengthening our existing relationships."

1. Blue Star Infotech PAT witnessed a strong growth of 86% in Q2FY14. How do you see your performance for the coming quarter?

We will see positive growth in the coming quarters as well. We will continue with our growth pace-adding new accounts as well strengthening our existing relationships. Our service offerings are improving both quantitatively and qualitatively, thus improving our revenue margins. We are also streamlining our operations, bringing in efficiencies and restructuring processes to reduce cost and improve margins.

2.The company's revenue fell during the quarter. How do you see revenue growth going forward?

The revenue growth is steady. We witnessed a flat top line this quarter because we acquired the complete stake of our JV, Blue7 Solutions and closed some of our unprofitable businesses. 

3. How do you see the overall industry outlook?

The overall industry outlook is very positive. To start with the domestic market, India and APAC are witnessing good growth. In India, the new government is undertaking a lot of initiatives and is emphasizing on Digital India campaigns which will translate lot of opportunities for IT sector.  As predicted by Gartner, Indian Government's IT spending would increase by 5% from 2014 and will reach USD 7.2 billion in 2015.

In US and Europe also, we see the markets have opened up with positive signs in macroeconomic environment and clients are willing to spend on IT and are not restricting themselves only to the essentials.

4. Could you tell us about your capex and expansion plans?

We will continue to invest in IP based solutions. We launched Mobile Vacation Planner (MVP) and Smart Retreat in past years. Both these solutions are adding great value to our clients in travel & hospitality sector. We are spending 2-4% of our annual revenue on research and development and hold plans to come out with many such innovative solutions which will bring immediate business values to our clients.

We are also seriously pursuing our aim to grow inorganically and hence looking to invest in companies providing services in digital transformation space.

5. What is your message to the shareholders and investors of the company?

We are confident of continuing with our growth spree and transforming ourselves from a Generic services company to a solutions player. We are strongly positioned as an emerging company offering specialized niche services/solutions in specific domains having deep knowledge and expertise. We would like to thank all shareholders for reposing their trust and belief in us.