Revenue from product (Intellect) business for Polaris Financial Technology (formerly Polaris Software Labs) is likely to cross Rs 500 crore in the current financial year, according to the company's chief financial officer, Mr S.R. Ramaswami.

Last year, revenue from Intellect was around Rs 362 crore. Mr Ramaswmi expects product revenue will cross over 40 per cent in the next three years from the present 27 per cent.

The group's overall business funnel currently is around $700 million for both product and service. First customers go for services; then they modify the systems with solutions and use a product of Polaris or of competitors, he said.

Polaris' Intellect registered 13 wins during the third quarter with Intellect revenues growing 69 per cent year-on-year to Rs 158 crore from Rs 93 crore during the corresponding quarter last year. The wins were well distributed across all geographies with the US leading the mature market growth story.

Mr Ramaswami said that he was happy with the deal size for Intellect as these are solutions deals. “In the services, I would be happy if it had been $100 million for 8-10 years. Those types of deals will come down over a period of time. However, the solutions deal size of around $10 million to $20 million from global banks is for multiple roll outs and run over a couple of years,” he said.

On the effect of Euro, Mr Ramaswami said at this stage, banks will plough more money as they need to support their countries. This will force banks to look for complexity reduction programmes. In Europe, there are certain markets that may go for large scale implementations, he said.

Mr Arun Jain, CEO of Polaris, while discussing with analysts on the third quarter financial results, said that during the quarter the company won a second deal after RBI that was over $20 million – a single deal of nearly Rs 100 crore. This is one of the biggest milestones. “We have built up a capability to win a multi-country roll out deal. We are expecting two deal wins, which is our large size deal of $10 million,” he said.

Mr Jain told analysts that Polaris has a funnel of at least 30 opportunities across Europe and America. And these opportunities are good entry to the large accounts. They may take another six to nine months to mature. “If we are able to close 30 to 40 per cent of those opportunities in the next six to nine months period, we have a very good funnel, which is there in US and Europe market,” he said.

>raja@thehindu.co.in

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