Mphasis-BFL targets $64m. in revenues for 2000-01

MUMBAI: Mphasis-BFL has announced that it has set a combined revenue target of $64 million to be achieved by 2001. E-solutions are expected to contribute more than 50 per cent to its revenues. The company is the product of a merger between India's BFL Software and the US-based Mphasis Corp. All merger formalities are expected to be complete by mid-June. Meanwhile, the BFL Software stock finished Re 0.50 lower at Rs 550 on Tuesday on the Bombay Stock Exchange.

"Mphasis-BFL is now concentrating on moving up the value chain by focusing on new projects and building newer skills within the organization," said a statement quoting its Chairman and CEO Jerry Rao. "We have successfully merged the marketing, development, finance, quality and HR functions and have also cross-staffed several projects," it said.

BFL's net profit slumped to Rs 4.42 million for the year ended March 31, 2000, from Rs 250.69 million in the previous year. The company had said in April that it does not expect to make profits in the first two quarters of the current financial year because of acquisition expenses.

Barings India Investment Ltd, a private equity fund sponsored by ING Group of the Netherlands, holds 52 per cent of BFL's equity and 22 per cent of Mphasis. It will have a 39.7 per cent holding in Mphasis-BFL after the merger is completed.

Mphasis-BFL is an end-to-end e-solutions provider and an interactive architect. It hopes to raise its employee strength from the current level of 1,300 to 1,750 by 2001.

(C) Reuters Limited 2000.