Saksoft’s net profit up by 333 percent

CHENNAI - The city-based software company Saksoft Limited Tuesday declared its 2008-09 net profit was up by 333 percent though its topline remained flat compared to the previous year.

“In spite of tough market conditions, the company closed last fiscal with a turnover of Rs.120.48 crore (Rs.1.20 billion) and a profit of Rs.9.63 crore as against Rs.120.10 crore and Rs.2.22 crore, respectively, in the previous year,” managing director Aditya Krishna told reporters here Tuesday.

Queried about the Rs.7.40 crore jump in net profit, he said the company reduced its employee cost by rationalising the management structure, increasing the number of billable employees and making the already billable employees more productive.

Krishna said the banking financial services and insurance (BFSI) software company is derisking its business portfolio by entering into new verticals like telecom for its information management services and also new geographies other than the US and Europe - from where it gets 80 percent of its revenue.

N.K. Subramaniyam, executive director (operations and technology), said the company has got seven new clients of which five have the potential to give a revenue of $1 million a year.

He said for the current year the company is targeting to grow its core accounts and also improve the revenue quality.

“Over the next two years we would like to increase the share of predictable revenues to 60 percent during 2010-11 and 80 percent the next year.”

Subramaniyam said in three years the company’s revenue mix will be 45 percent from information management, 35 percent from web development and 20 percent from software testing services as against the current 40 percent each from information management and web development and the balance from testing.