Infotech mulls acquisitions

Infotech Enterprises, specialising in engineering and geospatial services, is looking at aggressive acquisition strategy in line with the thinking of its shareholders.

Company Chairman and Managing Director B. V. R.Mohan Reddy told reporters here on Friday that the company however would only focus on value buying with about Rs.400 crore cash reserves and roughly about Rs.40 crore being added every quarter.

He said a couple of buyouts could happen in the first quarter of new fiscal. On the recovery of the IT sector with recession easing, he said it had been slow and it would take some time to achieve impressive growth the sector was used to at one point of time. The fourth quarter of the current fiscal would be flattish compared to the third quarter though the overall annual growth would be better than that of last year.

Infotech, while continuing to focus on engineering services which accounted for 66 per cent of its overall revenue, would look at avionics and nuclear power engineering as major thrust areas, he said.

Apart from its expertise in aerospace in terms of aircraft engine and sound support, it was now eyeing cockpit electronics. With focus shifting to nuclear power plants, nuclear power engineering offered huge opportunities world-wide including India and these plants would require a sizable amount of customisation.

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