Hyderabad: VisualSoft Technologies Ltd, a city-based blue-chip software product company, has achieved a Rs 108.07-crore total income and a Rs 25.39-crore net profit for the year ended 31 March 2002. The income and the net were Rs 135.60 crore and Rs 61.78 crore, respectively, during the previous financial year.
Accepting the heavy loss in both the turnover and the net profit, VisualSoft has announced its damage-control exercise in the form of repositioning the company's business model as well as organisational restructuring.
"Since we were operating in developers' tools market space and as the market was not favourably inclined to us, we decided on repositioning ourselves as a solutions company. We are not going to be yet another services company. When we say we are going to operate in solutions market space we mean to provide high-end, end-to-end solutions. We have been concentrating on this market segment for the last couple of quarters, and it reflects in our results," says VisualSoft chairman D V S Raju.
The solutions revenue for the quarter ended 31 March 2002 was Rs 25.01 crore - registering a 16-per cent increase over the corresponding quarter and a 5.24-per cent increase over the immediate sequential quarter.
VisualSoft has at least one large client per each quarter in this new segment and there are more than Rs 70-crore worth of projects in hand. The company has bagged three multimillion-dollar contracts from insurance, utility and oil majors in the US, says Raju.
"The solutions business as of now gives us a margin of over 33 per cent and though the products segment used to give us over 50 per cent margin at one time, the last financial year we lost over Rs 88 lakh in that area," he says.
The solutions offerings will predominantly be in the areas of enterprise application integration, application infrastructure management and reengineering, embedded systems, and new technology developments.
VisualSoft has set up a technology excellence group with over 70 professionals to provide technology direction to the company. It is also planning to move into the business process outsourcing and acquired space in Visakhapatnam by setting up a centre there.