We’re confident of growth in N. America, ...

We have certainties of our revenues at around Rs 50 per dollar due to hedging positions for the next financial year. our long-term currency hedges will bring predictability to our margins. mr B.V.R. Mohan Reddy, Chairman and Managing Director

Infotech Enterprises is a niche engineering services and geographic information solutions company with a turnover of Rs 1,188 crore last year. it caters to engineering design needs of firms in areas such as aerospace, consumer and energy. mr B.V.R. Mohan Reddy, Chairman and Managing Director, speaks on forex hedging, global crisis and expansion plans.

North America and Europe showed drop in revenues in the third quarter (over Q3 last year). How do you see this evolve and what are the new markets you are looking at?

Despite challenges in Europe, we had one per cent improvement in our revenue share from Europe over the previous quarter. our order pipeline is robust and we are confident of continued growth in both the markets in the coming quarters. we also expect to see traction to our Japanese business.

Forex fluctuations have resulted in losses in Q3. What would be your strategy for the next quarter and next financial year?

Most of these losses on Forex are notional and with rupee appreciation, we expect many of these losses to unwind in the coming quarter. our forex policy is robust from business perspective. we have certainties of our revenues at around Rs 50 per dollar due to hedging positions for the next financial year. our long-term currency hedges will bring predictability to our margins. we cover 70 per cent of its net forex inflows for next 24 months.

Attrition rate is high at 19 per cent. How do you plan to reduce it? do you foresee a need to shift skills sets of employees? What’s your plan to train them for new roles?

Attrition is stable at 18-19 per cent and is in line with industry average. While attrition is a concern for the industry, we make sure we always have a robust recruitment pipeline. Induction of freshers and providing them intense training helps us put them on-board rapidly and ensure that customer commitments are always met.

What’s the hiring plan for next financial year?

We have not yet finalised the hiring plans for next year as our budgets for financial year 2013 are not ready yet. we have 9,200 associates as on December 31. we may end the year at around 9,600. we have made offers for 400 freshers in the first round. the next round will happen after we finalise our budgets.

What are your expansion plans?

We have created 2,000 plus seats in SEZs in Visakhapatnam and Kakinada. Parts of these facilities are ready and balance will be completed in the coming year. we will add about 1,000 seats in Hyderabad SEZ.

What could be the growth rate for this and next financial years for the industry in the back drop economic turmoil in EU?

The industry growth for the current financial year is expected to be 18 per cent and for the next financial year a shade lower.

kurmanath@thehindu.co.in

<a href="http://www.thehindubusinessline.com/industry-and-economy/info-tech/article2817322.ece?homepage=true&ref=wl_hometag:news.google.com,2005:cluster=http://www.thehindubusinessline.com/industry-and-economy/info-tech/article2817322.ece?homepage=true”>We’re confident of growth in N. America, Europe in coming quarters: Infotech CMD

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Tags: managing director, mohan reddy, predictability

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