Bfl Targets Rs 100-Crore Turnover This Fiscal

The Bangalore-based BFL Software, a 100 per cent export oriented company now controlled by Baring India Investments Ltd of the ING Barings group, hopes to achieve a turnover of Rs 100 crore in the current financial year.

This was announced by the company's managing director B V Venkatesh at its sixth annual general meeting held here yesterday .

During the first quarter of the current financial year, the company posted a nearly 310 per cent growth in net profit to Rs 5.10 crore as against Rs 1.24 crore in the corresponding period last fiscal.

Total income during the period grew by nearly 100 per cent to Rs 22.56 crore (Rs 11.33 crore). Gross profit stood at Rs 7.09 crore (Rs 1.70 crore).

 

Besides changing the depreciation policies, aggressive provisioning was also done as per international standards to overcome the company's debt liabilities, said Rahul Bhasin, managing partner, Baring India Investments Ltd, who has also been inducted as a director on the board of BFL Software.

Income from software development for export has been substantial over the past few years, and is expected to grow further in the near future, Venkatesh added. Nearly 85 per cent of the company's revenue comes from the US. The company also proposes to enter the euro-conversion market in the near future.

During the previous fiscal, the company consolidated its operations in various countries. "We have already initiated the process of setting up a wholly owned subsidiary in the US which will also undertake high value-added consultancy abroad," said Venkatesh. The company has recently bagged an assignment from ABN-Amro, he added.

Meanwhile, the company's sixth annual general meeting would be the last to be held in Calcutta as the management has decided to shift its registered office to Bangalore. A resolution to this effect was tabled and approved by the shareholders' at the meeting. All the other resolutions, including the appointment of new auditors, Bharat S Raut & Co and the introduction of the employee stock option scheme, were passed by the shareholders.' Market capitalisation of the company currently stands at Rs 500 crore. Baring India Investments Ltd, which now holds 51.85 per cent of the paid-up equity of BFL Software, has sought the Secretariat for Industrial Approvals (SIA) clearance to increase its stake from 65 per cent to 72 per cent through an open offer.