The Hindu Business Line : 3i Infotech may raise revenue projections

3i Infotech had earlier said that its revenues would grow by 25-30 per cent for the current year over the previous year's Rs 292 crore, while profits were estimated to be 13-15 per cent of the revenues.

3i Infotech recently acquired the US-based Innovative Business Solutions Inc and FormulaWare Inc, and the Hyderabad-based SDG Software Technologies.

The cumulative revenues of these three entities on an annualised basis would be around $10 million, he said.

"Revenues from Innovative Business Solutions will be fully realised from the current quarter, while earnings from SDG and FormulaWare would be accrued for the months of November and December," Mr Chintopanth added.

Earnings from these entities would help the company exceed its revenue guidance for the year. Of the targeted revenues of Rs 370 crore from organic growth for the current year, 3i Infotech has crossed Rs 188 crore for the first half.

The company also expects its margins to improve with the increased flow of revenues from its products business, which is growing at 51 per cent.

"Our wish is to reach a net margin of 17-20 per cent in two years, up from the current 12-14 per cent," Mr Chintopanth said.

The company also expects its selling and general administrative expenses to settle at around 21 per cent in future, down from the current 23 per cent, he added.

3i Infotech has got an enabling resolution passed by its board to raise up to $50 million either through issues of securities or other instruments to build a cash chest for acquisitions.

"We expect to receive shareholder approval through the ballot by end of this month, after which we may firm up the plans on the mode of raising funds," he said.