The Hindu Business Line : Compulink eyes 30% profit growth

Mr Vishwas Mahajan, MD and CEO of Compulink Systems, says that the topline growth is seen at 40-45 per cent and growth in profit is at 25-30 per cent. He adds that the EPS will get a boost of about Rs 0.75-0.80 due to a saving in interest cost.

Excerpts from CNBC-TV18's exclusive interview:

Can you give us an outlook for next year?

We do expect to invest the proceedings of the public issue in some very important initiatives, which we think will push up our EPS as well as our revenue earnings further as we go along. We do expect to have a very long-term growth in these key parameters of the business. We expect to add at least Rs 0.75-0.80 to the EPS.

What is the key niche that you focus on and in terms of your profitability, how much do you expect to grow because as of September 2005 you are in net loss?

Compulink Systems is a product company and we provide software for service businesses. So in a sense, a service organisation is our customer and we have a set of very good customers who rely on our software products for delivery of their services' customers. These include large Indian and MNC-IT engineering and other service sectors. Indeed as a product company, we take a longer view of the business cycle. We have always maintained that our cycles are more annual, in fact we have given some of those numbers in the prospectus as well, which investors have thankfully looked at and given us the confidence.

So at about Rs 4.22, what is your topline and bottomline targets in terms of percentage growth from here?

We will have about 40-45 per cent topline growth. The bottom line will be about 25-30 per cent, so that should continue. We will heavily invest in international marketing and we do expect to reap benefits of that.