The Hindu Business Line : R.S. Software to focus on e-payment systems

`All providers of electronic payments - credit and debit card issuers, Internet-based payment systems, etc. - need appropriate software for high-speed applications pertaining to authorisation, clearing and settlement.'

Kolkata , Aug. 30

Having achieved a turnaround in its operations in 2005-06, R.S. Software (India) Ltd has decided to focus on the niche domain of electronic payment systems, a segment that has been registering a double-digit growth across the globe.

Turnaround

Speaking to Business Line, Mr R.R. Jain, Vice-Chairman and Managing Director of R.S. Software (India) Ltd, said the company had suffered losses for three consecutive years till 2004-05 on account of the dotcom bust and the after-effects of 9/11.

From a loss of Rs 1.49 crore in 2004-05, the company had recorded a net profit of Rs 5.93 crore in 2005-06. The turnaround has been attributed to "a shift in strategy from vanilla offshore offerings to niche domain focus on electronic payment systems".

Revenue domains

Currently, this domain contributes to 79 per cent of the company's total revenue. Other revenue domains include embedded software, retail and logistics.

"Electronic payments account for 40 per cent of the total payments made across the globe. In the US alone, this works out to $4 trillion. This essentially means that all providers of electronic payments - credit and debit card issuers, Internet-based payment systems etc., - need appropriate software for high-speed applications pertaining to authorisation, clearing and settlement.

"For R.S. Software, this has been the largest revenue stream for the last 15 years", Mr Jain said.

e-payment

According to him, as the volume of electronic payment grows, "so will our business volumes as also our ability to consolidate our knowledge and experience for sustainable revenue growth".

As such, the focus now was on capitalising on this huge global opportunity.

"R.S. Software is at a take-off point where it can capitalise on opportunities through a combination of operational excellencies, market-facing teams and our ability to provide unique solutions in this domain by virtue of the knowledge and assets that have been built over the last 15 years", he said.

Mr Jain said the company was hopeful of wiping out accumulated losses within the next 12-15 months. The company has targeted a revenue growth of 20 per cent and a 60 per cent increase in net profit in the current fiscal.

In the first quarter ended June 30, R.S. Software notched a net profit of Rs 2.09 crore, up from Rs 80 lakh recorded in the corresponding period of last fiscal.

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