MphasiS eyeing acquisition in software services sector
MUMBAI, Sept. 23

MPHASIS BFL Ltd, the Bangalore-based technology company with operations in software services as well as the call centre space, is on the `lookout' for acquisitions in the software sector.

Speaking to Business Line, the company's Chief Financial Officer, Mr Ravi Ramu, said, ``we are on the lookout for acquisitions in the software services area. A good client base and/or a particular geographical presence would be the drivers behind the acquisition.''

Mr Ramu also indicated that the target company will not be an Indian one. He further added, ``at present our business is complete. We do not need to acquire another company only in order to boost growth prospects. In that sense an acquisition is not an imperative but simply a good option at this stage to acquire a good client base, a good front-end or even a certain geographical presence.''

It may be recalled that MphasiS has recently appointed investment banker Solomon Smith Barney (SSB) to aide its strategic initiatives.

Speaking about MphasiS's software services business, Mr Ramu said that it has been difficult for the company in the past but things are beginning to look better now.

``Even during the slowdown, we have not shut down our offices or cut back on marketing efforts. Things seem to be getting better now; we have had some good client wins recently though their spends are small. We are just waiting for the slowdown to wear off because by then, I believe, we will be on a very good footing as far as the software side of the business is concerned,'' Mr Ramu said.

For the first quarter ended June 30, 2002, the company had reported a net profit of Rs 13.85 crore compared to Rs 4.80 in the corresponding period last year. Revenues for the quarter stood at Rs 89.5 crore.