The company has been looking to diversify into Europe and other markets to reduce its over dependence on the US market
Chennai-based LatentView Analytics Ltd is expecting India and Asia Pacific region to contribute 10 per cent of its total revenue in the next 2-3 years, according to company CEO Rajan Sethuraman.
Currently, the US market contributes over 95 per cent of the company’s revenue followed by Europe (3.5 per cent) and the rest of the world (1.4 per cent). The company has been looking to diversify into Europe and other markets to reduce its over dependence on the US market.
Sethuraman said the company added five new clients during the latest quarter, which includes the company’s first client in India. “We are pursuing 4-5 bigger opportunities in India and expect some of these to get closed in Q4.”
Sethuraman said the company has a healthy pipeline of prospective clients and added that the average deal size of opportunities is much larger than it was earlier. “In the past, we were doing $5,00,000-7,00,000 opportunities but at this point in time, we have at least five opportunities that are larger than $2million.”
He, however, added that large deal prospects also mean complex evaluation processes involving request for proposal (RFPs) and intense competition from other bidders etc.
Sethuraman said while the demand for data analytics remains strong, he acknowledged that deal conversion is taking longer time to fructify as companies are taking longer time due to prevailing macroeconomic uncertainty.
Meanwhile, the company reported a five per cent year-on-year growth in its third quarter net profit at ₹52.5 crore as against ₹49.9 crore in the corresponding quarter of the previous year. The company’s consolidated revenue, yoy, grew by 35 per cent to ₹145.3 crore (₹107.8 crore).
Rajan Venkatesan, CFO, LatentView Analytics, said, Q3 continues to remain a seasonally strong quarter for the company. He said the company’s cash and investments (excluding proceeds from the IPO) as of December 31, stood at ₹773 crore. “Most of this, we will look to deploy into inorganic growth (acquisitions) that we are currently evaluating.”
LatentView Analytics stocks closed at ₹376.50 apiece on NSE, 1.75 per cent lower than the previous day close.