Outlook: The downgrading of US bonds, the falling share markets in India, the rising inflation and increasing interest rates will not have any immediate impact in India. There will be a slowdown because most of the financial markets are not buying. Manufacturing is another segment that will slow down. As of now there is no impact, but over the next two quarters the impact will show. We expect to grow by 20-25 percent. This year, we should close at about `60 crore-65 crore.
Opportunities: We have to continue with business as usual. We cannot afford to have negative thoughts. We believe that within our existing clients there are huge opportunities waiting to be tapped. So far we have only been focused on their IT infrastructure needs, but there’s great scope for us to provide them comprehensive digital infrastructure solutions that include building automation and management systems, security surveillance, and managed services. Though we started preparing for this segment two years ago, we have started participating in projects only now. This new focus will contribute 15-20 percent to our revenue in the next two years.
Customer strategy: Customers have become cautious over the last 4-6 months. But that caution has not resulted in any changes in payment cycles. Over the last 2-3 years, because of consolidation and virtualization, the purchase values have reduced. We are consolidating our internal business, focusing on the data center in terms of servers, networking, etc. We are focusing on networking projects, besides some automation and consulting projects.
Operational efficiency: We do not have many changes on that front. But we are pressuring our sales people to collect the money that is due from customers. We will not let our sales staff relax. That is also helping us deal with the rising interest rates. We can’t let our money lie with customers for too long. If the collection is tightened, we can take care of the interest rate.
HR and finance: No changes at all. We will continue to recruit regularly in the enterprise space.
Key message: Stay focused, increase service revenues as much as possible, and keep the purse under control.