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Take Solutions Ltd has managed to get 15-25 per cent increase in billing rates from its clients in the US during the current financial year. This has helped the company report an increased net profit of Rs 21.6 crore on a revenue of Rs 160 crore for the first quarter ended June 30, 2011. This represents a 51 per cent increase in net profit over the same period last year.
According to Mr H. R. Srinivasan, Vision Holder, Take Solutions, the growth is driven by an increase in revenue from existing clients in both the segments — Life Sciences and Supply Chain Management.
New clients
The higher billing rate coupled with acquiring two clients to provide annual revenue of around $10 million each, the company is hopeful of achieving 40 per cent growth year-on-year in the current fiscal,
“Last year, there was no $10 million account. This year, we have two $10 million clients and negotiations are going on with one more. There are six clients giving us annually a revenue of $5 million,” he told Business Line .
While clients in the US and Asia are giving the rate increase, the situation in Europe is still ‘muted' and will continue to remain so for the rest of the year. “Clients gave the increase for providing specialised work in areas such as clinical data management and regulatory issues,” he said.
As a product company Take does fixed bid contractors, and is not into providing hourly rates like the IT service companies. The period of a project could range between six months and three years, he said.
The company's order book at the end of the first quarter was $72.5 million up 40 per cent over the corresponding period last year. Life Sciences' order book stood at $41.4 million while the Supply Chain Management business closed the quarter with $31.1 million, he said.
Investment
Mr Srinivasan said in the current financial year the company is investing Rs 25 crore to expand additional facilities in Chennai, Singapore and the US. It plans to increase the employee headcount by nearly 300 to end the financial year with around 1,400 personnel, he said.
The funding for the expansion will come from internal accruals. Take Solutions has a cash balance of Rs 113 crore, he said.
WCI acquisition
On the acquisition of WCI Consulting in January 2011, Mr Srinivasan said the integration of both the companies is progressing as per plan. TAKE and WCI's offerings are driving a significant increase in new opportunities for the company.
WCI is expected to witness a muted growth in the July-September quarter due to prevailing economic uncertainty in Europe. The synergies between TAKE and WCI are expected to start showing results by the third quarter of the current financial year, he said.
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