GIS software services companies build software applications around geographical data. The target audience includes GIS software product companies, real estate companies, insurance companies and government. There are two listed companies in this space in India-Infotech Enterprises and Genesys International. Larger projects are now being outsourced to India, according to company officials. Sajid Malik, managing director, Genesys, says, “We have bagged a $ 7.8m contract, which is large by our industry standards.
Moreover, it is a complete project from data to product. The project is from the state of Florida in the US to complete an end to end digital mapping solution and it has been commissioned by a reinsurance company. The data will be used by the state and will be given out to other people also, he said.
The two-year project is likely to be extended to the rest of the US and other states if it is successful. Hyderabad-based Infotech Enterprises, which has recently been renamed as Avineon, has also been witnessing decent growth rates. While the industry average for software services is around 25% , Infotech has grown at more than 40% in its last quarter ended June 30, `02.
Total income went up to Rs 29.6 crore from Rs 21.1 crore, while profit after tax went up by 64.6% to Rs 6.32 crore. Infotech has projected full year revenues of around Rs 175 crore in fiscal ’03 compared to Rs 131 crore last year, a growth of more than 33 %, much higher than most software services companies. Genesys is also planning an equally rapid growth. The State of Florida project is expected to add around Rs 8 crore to the topline this fiscal year. The bulk of the project revenues from the project will impact the top line and bottomline only next year.
Genesys has been restructuring its business and was in investment mode last year, it reported a top line of Rs 42 crore with a small net profit of Rs 1 crore. The company is targeting a topline of Rs 55 crore, this year with a bottomline of close to Rs 12 crore , according to company officials.
