ITC Infotech to touch $1 billion revenue-mark in five years: CEO

Singh, an Infosys veteran who is credited with doubling Infosys engineering services’ revenue from $400 million to $800 million during 2013-2018, has completed five years at ITC Infotech this month. (ITC Infotech)

Mid-tier IT firm ITC Infotech, which will almost double its revenue from around $250 million in FY19 to a little less than $500 million by the end of FY24, is preparing for its next milestone – $1 billion revenue-mark in next four to five years, said MD and CEO Sudip Singh in an interaction with FE.

Singh, an Infosys veteran who is credited with doubling Infosys engineering services’ revenue from $400 million to $800 million during 2013-2018, has completed five years at ITC Infotech this month.

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He’s building the momentum for the next milestone of $1 billion by transforming the company, building a next layer of leadership and clinching a handful of multi-million dollar deals from clients.

In the process of transformation, ITC Infotech is planning to start a new vertical, either in healthcare or high tech. Today, the company has three primary verticals – financial services that gives about 20% of its revenue, manufacturing and CPG (consumer packaged goods) at 50% of total revenue and travel and hospitality, that gives 30% of revenue, explained Singh.

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Geographically, it now wants to focus more on Middle East because of the advantage it gets from its parent organisation ITC in the same region. While Americas contribute about 40% of its revenue, Europe gives 35% and India gives 10%. The IT firm has also brought down its exposure of business to its parent ITC from 10% in FY19 to less than 5% in FY24. Singh explains that this is because of their revenue growth (i.e. denominator) and the firm still gets a significant business from its parent.

The company is also looking at acquiring a few companies to build capabilities, and not just add to revenues inorganically. “We have almost doubled our revenue organically. The PTC acquisition was also a rebadging deal.” Rebadging is the transfer of employees from clients to IT vendors as part of some IT deals.

The IT firm is growing 11% year on year in its revenue. “We are hoping to grow at middle teens in the next fiscal. Our Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin has more than doubled from 7.9% in FY19 to 18% now.”

Another transformation that the company is seeing under Singh is hiring of freshers. “We are hiring more freshers today than five years earlier, trying to make our organisation look like a pyramid.” The firm’s headcount is slightly more than 11,300.

As far as building of next layer of leadership is concerned, Singh said, “We have appointed new CFO, COO, CHRO, CAO, and other senior leaders this fiscal, who have joined from other top-tier companies like Tech Mahindra, LTIMindtree, Flipkart and others. They have stabilised now and are ready for our next milestone of $1 billion revenue.”