Allsec Technologies held a conference call on July 24, ’07 to discuss the performance for the quarter ended Jun ’07. The company was represented by Adi Saravanan, President & Director and R Jagdish, the CEO in the call.
Key takeaways of the conference call
Earnings for the quarter ended Jun ’07 stood at Rs 4.57 crore compared to Rs 6.99 crore in the sequential previous quarter. Total income of the company stood decreased to Rs 26.99 crore from Rs 28.57 in sequential previous quarter. On year on year basis total revenue declined by 6%. Degrowth in revenue is largely on account of rupee appreciation.
Current employee count of the company is 3104 compared to 2144 last year. The company has added about 613 employees during the quarter ended Jun ’07.
Attrition rate stood about 11%
The company has added 4 clients during this quarter compared to 5 clients added last quarter. The company is currently looking clients who could at least absorb about 250 employees.
Top client contributes about 21% of the revenue and Top three client contribute 63% of revenues.
Revenue mix on the basis of voice services and non-voice services is 74.67% and 25.4% respectively. Substantial part of non-voice revenue comes from quality assurance and 5.12% of the non-voice revenue comes from domestic back office services.
The company is looking at telecom and financial services business at domestic market. And the company expects to sign a domestic contract for voice application in next 15 days.
Tapping domestic market and low cost centres such as Trichy, Manila will enhance profitability. Further tapping of domestic market will also lead to better utilization of resources. The billable employees during this quarter were 1705 during the quarter.
Trichy facility of the company will be operational by this month. The facility will have a seating capacity of 200 seats. And the company has identified location for its 500-seater global delivery services at Manila. The Manila facility is expected to become operational from fourth quarter of FY ’08.
The company expects a revenue growth of 30-35% in the top line in USD terms for the current fiscal ended Mar ’08. The company expects a PAT margin of about 15% considering the impact of rupee appreciation, most likely acquisition, expansion and new contracts.
Debt of Rs 27 million
Carlyle has introduced them to six large Tier I clients.
Cash in book Rs 106 crore
B2K which was acquired in FY06 has a cash loss of 3.5 million USD on a revenue of 2.98 crore. The company expects B2K to turnaround by next quarter i.e. quarter ended Dec ‘07.
Out of the 613 newly added employees about 250 will be allotted to existing clients and balance will go for new process. This new process is not likely to make contribution to the top line.
The company expects to close current fiscal with a employee count of 4000.
The company has earmarked USD 30-35 million for acquisition.
The company targest to grow to a 100 million US dollor company in next two years.
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