Precision Infomatic : Sailing Through

After a 14.7 percent growth in 2007-08, Chennai-based Precision Infomatic
registered a decline of five percent in revenue last fiscal. The company did not
sign any big contracts during the last fiscal and has been consistent in what it
was doing- maintaining its client base.

Last fiscal was a year of consolidation for Precision. The company saw a big
decline in service revenues compared with the previous year. Third-party
maintenance and support is the major contributor to the company's revenues.
During this fiscal, South contributed 77 percent, while North and East
contributed eight and 15 percent, respectively. The hiring more than doubled-the
headcount was 203 last year and stands at 577 this fiscal.

Though Precision did not ink big deals, it brought in new clients in
government, PSUs and defense, and bagged several IT integration projects. In
addition, the company has signed up contracts to offer 24x7 support to a major
client. The company strategically shifted focus by choosing to sell solutions
rather than just boxes. The company has started focusing on ERP solutions,
VMware, virtualization, Citrix solutions and Microsoft, Linux-based deployments.

The company sees positive turnaround for the investments made last year and
is bullish on all regions. Info-Drive Software, which acquired 51 percent stake
in Precision during 2007-08, seems to completely back the company. By first
quarter of next year, the company plans to take a call on opening new branches
once the market stabilizes. Thanks to the company's portfolio, a decent mix of
products and services, the company has been successful in weathering the
recession. Precision aims to register 10 percent growth in FY'09-10.

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SILVER CLUB RANK (2007-08): 5
PROFILE
CEO: V Murali Start-up year: 1996 Employees: 517 Collaborations: HP, IBM, Lenovo, HCL, Microsoft, Novell, Toshiba, VMware, etc Address: #22, First Floor, Habibullah Road, T Nagar, Chennai - 600017 Tel: 42199500 Website:www.precisionit.co.in
HIGHLIGHTS Changed strategic focus by selling solutions rather than boxes Brought in new clients in government, PSUs and defense segments