Nine out of 10 pharma firms are our customers: Srinivasan H R

Take Solutions will become a complete life sciences company in future as life science has a contribution of almost 94% to the revenues, says Srinivasan H R, Vice Chairman & Managing Director, Take Solutions. In a chat with Dimpy Kalra, Srinivasan said, "We are the only listed clinical research organisation in India and this provides a niche space for us."

You wish to make Take Solutions into a $500 million company by 2021. Let us know about the steps that will be taken for it?

The company was established in 2001 as a software product company, that too in the supply chain. Later, life science was added to our portfolio, and during the journey in the segment we felt that we are growing well in this domain and then we started shifted our focus towards it. Life sciences had 94% contribution to our revenues and that's why I feel that we are a life science company. Secondly, we are the only listed clinical research organisation in India and this provides a niche space for us. As far as the $500 million target is concerned, we have reached $292 million mark in March 2019 end. And, I would like to inform you about two acquisitions made in March 2019, which led to accrual of around $30 million. Secondly, if you look at our growth rate from the first quarter of fiscal 2016 then you will find that the compounded quarterly growth rate of our life sciences business stood at 7.63%. So, I feel that the growth trajectory and the order-book that has been established at our end will help us in meeting the target.

What are the your margins in the life science business and do you think that these margins will continue to grow?

Our current margins stand at around 18-18.5%. At the same time, and I would like to say our capacity utilisation stands at around 50-52%. So, going forward, the margin will remain flattish this year, but it is likely to grow in the next fiscal.

Let us know about the debt levels of Take Solutions?

Our leverage stands at 0.221, thus it is very low. As far as the balance-sheet and debt are concerned, then we have a debt, but it is dollar-denominated and it is overseas. We don't have any Indian debt in our book. So, our average rate lies at Libor plus 2.50-3%. So, the company services it and I don't think that this can turn up to be a matter of concern for any investor.

Tell us one thing that can prompt an investor to invest in your company?

Nine out of 10 top pharma companies in the world are our customer today. And I think that a clinical research organisation that emerged in India has nine out of 10 top pharma companies of the world as its customers is an endorsement of our capability and ability to deliver.

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