Exclusive Interview of Rahul Kanodia - Vice Chairman & CEO DGSL

Jun 30, 2014 10:00:00 AM

Brief us about your Financials?
Our financials show continuous and steady growth over the past few years. Based on the last 3 years’ consolidated revenue, Datamatics has had a CAGR of 40% making it the 2nd fastest growing IT & BPO Company listed on BSE.
The year-on-year growth has also been excellent. The Company’s revenues increased by 33.4% to Rs. 733.81 crores in FY14 as compared to Rs. 550 crores in FY13. EBIDTA increased by 71.99% in FY14 to Rs. 97.63 crores as compared to Rs. 56.76 crores in FY13.
What is your outlook for the coming quarters?
We have been witnessing consistent growth over the last few quarters and expect to continue our growth momentum. We have a healthy pipeline within the key focus areas. Besides this, we are also building competencies in the market growth areas, which will contribute immensely. I am also very positive about our growing business in the healthcare sector.
What is your take on formation of the new government?
We are very enthusiastic about the new government at the centre. The new Prime Minister comes with a progressive outlook and we are already seeing some good signs including a rebounding SENSEX. There is every reason for this to continue. I am confident that we are about to witness a growth spurt in the GDP fuelled in good part by various sectors of the industry. Since IT contributed over 6% of India’s GDP in 2013, I am sure we shall see some measures that would propel the growth of this sector as well.
Brief us about your international operations?
We have a balanced revenue stream from across geographies. Last year U.S was the topmost contributor (69%), followed by Europe (20%) and India (11%) thereafter. In view of recovering global markets, we expect similar growth pattern in the coming quarters as well. Besides this, we are also seeing some positive traction in the Middle East.
Your outlook on the IT sector for FY15?
In the coming years, disruptive technologies and digitization will continue to fuel growth in the IT sector. The need to collaborate and connect will create further business opportunities for the IT industry. However, to achieve higher growth, the IT industry leaders will also need to focus on innovation, developing industry specific solutions, flexible global delivery models and focus on increased operational excellence. I expect the IT industry to grow between 12% to 14% for FY15.
What is your view on the rupee?
I do hope that the Indian Rupee has already seen the worst depreciation it would ever see. The rupee is currently on an upswing and it is imperative for the industry that it stabilizes at a reasonable level.  I believe that we shall soon see it holding its ground against any further volatility and thus creating an atmosphere friendly for growth.  I expect the Re. to hover between 58 to 61 to a Dollar.
Are you in the race for any acquisitions?
Inorganic growth is one of the key drivers of our strategy. We shall continue to build partnerships with companies that can complement Datamatics’ core offerings to offer better value to the customers.
The target would be to offer more customisations and add further dimensions to our solutions. Mobility, Analytics and BPM are a few of the areas under consideration.
What are your hiring plans?
We currently have a global headcount of 6300 employees. In the next one year, we plan to hire about 2000 to 2200 to employees.

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