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Genex Infosys Limited, a publicly listed information technology (IT) firm, has transformed the country’s corporate technology landscape as the tech company is currently providing cutting-edge services to more than a hundred companies, including many giant firms too.
Being an information technology-enabled services (ITES) provider, Genex Infosys is enjoying tax exemptions against the services it provides and this exemption would be in place until June 2024.
The company provides services to many top corporate organisations under long-term contracts, varying from three years to five years.
On the other hand, tax exemption has given it an upper edge over almost all other listed companies.
Genex Infosys Company Secretary, Jewel Rashed Sarker told The Business Post, “We currently have contracts with more than a hundred companies, including corporate giants like Banglalink, Grameenphone, Robi, Standard Chartered Bank, icddr, b, and Edotco Bangladesh Co Ltd.”
“We have three to five-year contracts with corporate organisations except for some short-term deals. As most of the contracts we have signed are long-term in nature, our revenue generation is guaranteed.”
On September 14 this year, the company also got approval to be selected as a vendor for the collection of the Value-added Tax (VAT) for the next three years on behalf of the government.
“Although the supply process of VAT collection machines to the government has become finalised, it is still not confirmed what would be the terms of the contract or how much we could earn from it,” said Jewel Rashed.
“Once it gets finalised, we would inform the investors,” he added.
The company has recently renewed its 5-year contract with Banglalink Digital Communications Ltd to manage its call center for another 5 years, from which the company expects to generate Tk 12 crore in revenue per year.
Moreover, it has been a strategic partner of Banglalink Digital for providing robotic process automation (RPA) services since 2020.
Genex Infosys, also known as GENEXIL, launched a logistics aggregator company in January 2022 under the brand Loginex Limited which has been building partnerships with Dhaka-based local logistics companies.
The company is expected to produce about Tk 15 crore in revenue per year.
GENEXIL recently partnered with Standard Chartered Bank, Bangladesh to scale up the efficiency of the bank’s distribution network which would help the tech service provider earn around Tk 6 crore in revenue each year.
The company has also had a three-year agreement with Edotco Bangladesh Co Ltd since July 2021 under which it provides 360-degree internet of things (IoT) based security solution to Edotco.
The deal is estimated to generate around Tk 24 crore in revenue per year.
Genex also entered an agreement with icddr,b in May 2021 to supply, install, integrate and implement Microsoft Dynamics 365 ERP software for them from which the company would earn a total of Tk 22 crore in revenue.
The company has been paying a 20 per cent dividend every year since its capital market listing in 2019.
The company’s generated a profit of Tk 32 crore in FY20, and Tk 33 crore in FY21.
However, in the first nine months (June-March) of the fiscal year 2021-22, the amount of the company’s short-term loans increased by around 58 per cent which forced its financial expenses to soar by 28 per cent and hampered its profitability.
On Tuesday, Genex Infosys share rose 0.27 per cent to Tk 75.30 on the Dhaka Stock Exchange (DSE).
Out of the total shares, its directors hold a 31.68 per cent stake, while institutional investors and the general public own 22.71 per cent and 45.55 per cent respectively.
