3i Infotech sees US revenue rise to 50 pc in FY09
SOURCE: EconomicTimes
DATE: September 9th, 2008
Software services firm 3i Infotech Ltd sees revenue from the United States doubling to 50 per cent in this fiscal year following the acquisition of Regulus Group LLC, a top official said on Monday. Revenue from the US market, excluding Regulus, was 25 per cent last year, Chief Financial Officer Amar Chintopanth, who is also the executive director of the company, told Reuters in an interview.
Regulus was acquired in April for a total consideration of up to $100 million, to boost 3i Infotech’s transaction services business. Transaction services, which the company recently entered into, is growing into a significant revenue earner for the software firm.
Last year it contributed about 12 per cent to its revenues. “In the IT business, revenues are equally split between products and services. Transaction services will form one-third of our business after Regulus,” Chintopanth said. Transaction services include documents, bill and payment processing.
The company also expects to exceed its revenue guidance this year, which was set at 17 billion rupees, Chintopanth said, though he did not disclose actual numbers. 3i Infotech is also setting up kiosks to dispense financial services through connectivity to state data centres, he said.
The revenues from the e-governance project is expected to start from the third quarter of this fiscal, he added. It currently has about 850 kiosks set up while it has committed to setting up 12,000. The company is investing about Rs 100 crores this year on e-governance projects, which is a major focus for the company in India.
Energing markets growth “Growth is not happening in traditional IT services areas, so we are trying to identify growth areas where we can invest.” 3i Infotech has a joint venture agreement with China’s Yucheng Technologies to provide software services, revenues from which would come in from the third quarter of FY09, he said.
“China is a market by itself. We are not looking at it as a low-cost centre. A lot of banks over there are getting automated, while a lot of insurance licenses have also been issued,” Chintopanth said. 3i Infotech is looking to invest in other emerging markets.
Apart from China, it is looking at CIS nations, specifically Russia, in the areas of insurance and banking. “We are in the initial stages of identifying prospects there,” he said. Europe, largely the United Kingdom, contributes about 15 per cent to its revenues, about 13 percent comes from the Middle East and Africa while the remaining is from India. Shares in 3i Infotech closed up 1.73 per cent at Rs 111.95.
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