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Mumbai-based mid-cap technology product and solutions firm Geometric may well be on the road to recovery, as senior management of the company said that for FY15 the company is confident to meeting Nasscom’s industry growth target of 13-15 per cent.
The company, providing service in product lifecycle management, global engineering and offshore software development solutions, over the last three years has been undergoing structural changes so that it is better equipped to scale and grow topline in future.
“The last 12 months have been especially tough for us. But we have used this adversity to put is some steam into the company. Our fourth quarter FY14 results saw growth returning. I have no reason to believe that we will not grow in future,” said Manu Parpia, MD and CEO, Geometric.
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The consolidated revenue for the fourth quarter of FY14 was up 10.6 per cent year-on-year.
For the full year the firms revenue at Rs 1,095.45 crore was up 7.3 per cent from last year. However, the restructuring impact as evident on the profit numbers which continued to be down.
Parpia said that the company has implemented several changes with an aim to be a scalable enterprise.
“Last year we took some real drastic steps. This included cutting out client list from 140 to just over 70. We decided to end our relationship with others because they were really small and serving them was cost for us. On the other hand these 70 accounts are those clients which are already contribution good and we have the potential to grow them further,” he added.
The company also moved its P&L responsibility to vertical head making them more accountable.
The company also re-implemented a SAP programme that bring Geometric on one system.
Other changes included training of sales team to ‘value sell’ rather than take order. “This is significant for the company for the sales team to speak the same language. We want the company to change from transactional to value based,” added Parpia. And finally, the company refined its offering into six verticals.
The changes are evident in the company’s performance. For instance, Q4 order book was at $10.49 million, this was up from $6.85 in same quarter last year and $9.25 million in the corresponding quarter.
Rather the company said that its large deal closure rate improved over the previous quarter from 21 per cent to 35 per cent, and doubled compared to H1 of last fiscal.
The company today also announced the inauguration of its facility in Hinjewadi marking the 20th anniversary of its incorporation.
The centre will house Geometric’s Research and Development (R&D) and IP team and will house 500 people.
