Intelligroup to double revenues from renewable energy vertical

Intelligroup, a global provider of business consulting technology and outsourcing services, expects its revenues from the renewable energy vertical to double by next year, said company’s president and chief executive office Vikram Gulati. The vertical at present contributes about 2 per cent to the company’s overall revenues.

The company, which has its global delivery centres in Hyderabad and Bangalore, is in talks with around five companies engaged in oil and gas, solar, solar thermal power, wind power and second-generation biofuel in the US with sub-$1 billion revenues, and expects these client wins to be in place by the first quarter of the next calendar year, he told Business Standard.

“The amount of new investments in the renewable energy space is growing at 25 per cent year-on-year, which is currently pegged at $250 billion. Besides, US president-elect Barack Obama’s announcement on his government’s plans to earmark a $15-billion spend every year for renewables holds maximum promise for us,” he added.

Intelligroup currently has two customers in the renewable energy space in the US – Ausra, which develops and deploys utility-scale solar technologies to serve global electricity, and SumPower that manufactures high-efficiency solar power solutions for residential, commercial and power plant applications.

“We are now in the process of figuring out the possibility of modifying SAP and Oracle applications that would suit the requirements -- including asset management, preventive maintenance and supply chain – of these companies,” he said.

Intelligroup reported revenues of $41.2 million (about Rs 197.76 crore) for the third quarter ended September 30, 2008, an increase of 8.4 per cent over $38 million (Rs 182.4 crore) in the corresponding last year. Its gross profit grew 16.21 per cent to $12.9 million (Rs 61.92 crore), as against $11.1 million (Rs 53.28 crore) during the same period last year.

Offsetting its operating income gains, the company recorded a net foreign exchange loss of $0.7 million in Q3 of 2008 reflecting the impact from its hedging strategy due to the ongoing decline in the value of rupee versus the US dollar in the quarter, Gulati said.