Four Soft expects Rs 165-170cr in revenues in FY11
Q: You have won a contract from a US based Aries Global Logistics. Could you tell us a little more about the revenue impact this would have on you all?
A: We have got this order, which is essentially for implementing our forwarding software, along with our custom software for the US. The value of the order right now is to the tune of USD 200,000, which will come into our revenue this year. But over a period of the next four or five years, if you take the maintenance and the extra services that we are going to get from Aries, it is probably going to add up to something to the tune of USD 800,000 to a million dollars.
Q: So USD 200,000 is the revenue accretion on the account of this deal which you all will see in FY11—just to confirm?
A: This year we would be able to invoice that part of it we are invoicing right now because we have signed the contract and part of it will be invoicing when we finish the implementation which is likely to be in the November-December timeframe of this year.
Q: You did about Rs 130 crores last year, so what would that take your revenue in FY11 to?
A: In FY11, we are talking about a top line of USD 35 million. So it will probably convert it into rupees—probably would be about Rs 165 crores to Rs 170 crores.
Q: You have actually won quite a few orders in the past, couple of weeks or rather months. Where would your total order book stand at currently then?
A: We have two lines of business input. One is the existing business, which is normally something, which we run from year-to-year. The other part is all these product implementations that we are talking about like Aries and some of the other contracts that we have won. For the first line of business our order book is about something like USD 20 million or so and from second part of the business, we are talking about USD 7-8 million right now which we hope to increase by double that over the period of the rest of the financial year.
That’s how we are looking at a total of USD 35 Million for the whole year.
That’s how we are looking at a total of USD 35 Million for the whole year.
Q: How’s Europe looking currently because Europe declined quite significantly last year so how is that panning out for you this year?
A: Again sticking to our two lines of business what has happened is for our existing line of business with our current customers, we are able to keep all of our customers though some of their spending has definitely reduced last year and some of it is through this year also. So the good thing is that we haven’t lost customers but the not so good thing is that they are probably not spending that much as you would like them to spend.
However, we are having some large opportunities with some of our larger customers in the fleet forwarding and the supply chain space which we are really hoping would take us quite far. In fact one particular thing that I would like to mention is that we have started this application outsourcing service from Four Soft where we put a virtual team for the customers in our Hyderabad office. This is something that we have already started and we have got an order which is worth about a million dollars so we are just signing that up and we should get to hear on that quite soon also.
However, we are having some large opportunities with some of our larger customers in the fleet forwarding and the supply chain space which we are really hoping would take us quite far. In fact one particular thing that I would like to mention is that we have started this application outsourcing service from Four Soft where we put a virtual team for the customers in our Hyderabad office. This is something that we have already started and we have got an order which is worth about a million dollars so we are just signing that up and we should get to hear on that quite soon also.
Q: And when would we be to hear about that by?
A: We are expecting to sign the contract in July itself. We definitely hope to talk about it in July.