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Vishwanath Kulkarni

Mr Sumit Ganguli, Group CEO, Mindteck, said: "The onsite services contract with ABS is still with us and we are trying to bring them back into our fold."

BANGALORE, Feb. 19

TAIB Bank-owned software services firm Mindteck expects to be back in the black during the next quarter. Mindteck slipped into the red last quarter when American Bureau of Shipping (ABS), one of its largest clients, terminated its offshore software services contract in October 2002.

The company plans to double its revenues on a consolidated basis, which includes that of its US entity Mindteck Consulting Inc. It expected the revenues to cross Rs 100 crore over the next two years, said Mr Hemant Sonawala, Chairman, Mindteck. The company also plans to hire about 100 engineers by June.

"We are looking at a CAGR (compounded annual growth rate) of about 40-50 per cent over next two years and expect to be back in the black next quarter," Mr Sonawala said. The consolidated turnover for last year stood at Rs 48.53 crore.

"The exit of ABS did impact us, but we expect to recoup by March-end," said Mr Sumit Ganguli, Group CEO, Mindteck. "The onsite services contract with ABS is still with us and we are still trying to bring them back into our fold," Mr Ganguli said.

Mindteck had a team of 70 people working for ABS at its Kolkata development centre, which was taken over by the latter as it intended to operate on its own. "We have about 30 people working onsite for ABS," he said.

The company was betting on its embedded systems business to drive its future growth, said Mr Ganguli. "We have added five clients in last month of whom four are in the embedded systems business alone," Mr Ganguli said adding that the company saw "good traction" in that area.

Mindteck with a headcount of 350 planned to have 100 more by June this year, of which about 50 would be for its embedded business, said Mr Ganguli. "We expect the embedded development team to cross 100 by June," he said.

Commenting on its business applications group, Mr Ganguli said the prospects were bright for the business which is volume driven.

Meanwhile, the company is sharpening its focus on West Asia. "The Gulf region is going to be a large focus area for us," said Mr Ganguli, adding that the company intended to leverage on its parent's presence in the region. "We are looking at a revenue of $10-12 million in a two year term from West Asia alone," he added.

Mindteck reported a net loss of Rs 1.38 crore on a consolidated basis on turnover of Rs 10.4 crore for the quarter-ended December 31,2002 against a net profit of Rs 60 lakh on turnover of Rs 12.2 crore in corresponding period previous year.

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