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Info-Tech - Interview


Australian deal proceeds to come in equal parts: Scandent

SCANDENT Solutions has won a $64.5 million order from Australia, this order is a four-year contract, and will be effective until June 30, 2010.

The CFO at Scandent, Mr Pradeep Chaudhry, says that the proceeds from the new deal will come in equal parts. He adds that the EBIDTA for their BPO unit is seen at 10-12 per cent.

Excerpts from CNBC-TV18's exclusive interview with Mr Pradeep Chaudhry:

When does the money start coming in?

The money will start coming in the April to June quarter next year. This is a four-year contract of $64.5 million. This will basically extend all the way till June 2010. So from our perspective the important thing is its annuity. I think it will come in equal parts.

This is perhaps the third contract that you have announced in the last few months. What sort of margins are you getting these contracts at?

I would not like to comment on margins per contract, but this is obviously a renewal contract for us and comes at decent margins.

We had a contract in New South Wales, which was at $37-38 million over three years, which was about $13 million a year. So the build-up for the year 2006-2007 has been good so far.

Are you looking at revising your topline guidance?

Not at this point, but I think the guidance that we put out on our Web site is looking firmer.

What do you mean by firmer?

It means whatever range we have put out, we are more or less certain of reaching it.

What are your blended margins?

Blended margins on the BPO side are in the 10-12 per cent range, that is the EBITDA. This is purely a non-site operation as of now and in the coming years we hope to increase that substantially.

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