Revenue from the vertical is a little below $100 million per quarter and it is growing 71% year-on-year, chief executive Sandeep Kalra told ET, saying “that’s a dream come true”.
The vertical’s contribution to the company’s total revenue has increased by 8 percentage points in the past four quarters, to 27.8% in the July-September quarter from 19.3% in the year-ago period.
“In the next one to two quarters, it (healthcare and life sciences) will be at a run rate of $400 million and we’ll have crossed 100 million dollars (every quarter). So, in the next three to five years, that should be a billion dollar business, standalone,” said Kalra.
The vertical has the right ingredients to achieve this milestone, he said, adding, “The market is big, especially the US. The market is big in healthcare… there are multiple sub segments – scientific instruments, medical devices, the payers and providers. So, there are four distinct categories, although there may be a consolidation happening between payers and providers and new category, emerging providers, but there’s enough.”
The firm’s capabilities are good and it has ramped up very well, Kalra said. “If we grow even at 25% year-on-year in the next five years, it will definitely reach a billion dollars.”
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He said that if the vertical grows faster than 25%, it will reach the $1 billion milestone faster than anticipated.When asked about falling revenue contribution of software, hi-tech and emerging industries vertical, Kalra said, “There are different leaders for each of these industries. There’s a healthy competition within the company and outside the company. So, nobody’s incentivised to de-grow their vertical. Everyone is incentivised to grow their vertical. But if someone grows faster than the other, obviously the percentage contribution comes down. I don’t think you should read too much into it.”
The company on Tuesday reported a 23.4% jump in its net profit to Rs 325 crore for the second quarter of this financial year from Rs 263.27 crore a year ago. Revenue for the three-month period increased 20.1% to Rs 2,897.15 crore from Rs 2,411.6 crore during this period.
