Aplab venturing into embedded tech

Deodhar adds that Aplab has three divisions which are fast growing and they have intelligent terminals for the banking and the petroleum division and both of them are on a high growth path. 

Deodhar states that they are getting into embedded technology areas as the market is showing a lot of interest in that direction. Aplab expects the power electronic division and the petroleum division to be the major drivers.

They see a lot more business as they now have international approvals for our products, they are not just looking at the domestic markets.

Excerpts from CNBC-TV18's exclusive interview with PS Deodhar:

Q: One point which is been mentioned in the report is that there has been delay in fuel dispensers for oil marketing companies which the market was expecting. Can you give us some more clarity on that, when can you start servicing these oil marketing companies and how substantial these orders could be?

A: I will tell you little more about Aplab. It’s not just the new order that continues Aplab’s growth; Aplab has three divisions, which are fast growing, we have intelligent terminals for banking as well as petroleum division and both these are on a high growth path.

The order got delayed because there are procedural problems but the order will come, we would have like if the order had come earlier. But in my opinion that is only part of the story, that order is due any day, so we are not much concerned.

Aplab now is a 44-year company; it has been always profitable throughout these years and we have some distinctive strengths, which are basically intrinsic strengths in terms of R&D capability. We are one of the few companies in the country as a manufacturing company that is surviving, competing and exporting. So I think we are on a high growth path, I personally do not have any doubt about it as a biggest investor in the company, I am confident of rapid growth.

Q: How large is that potential order you might get and how much is your order books at, at this point?

A: We have an order book touching Rs 30 crore and if we get this new order it will be Rs 35 crore. This year we already had orders worth Rs 75 crore booked and I think we will have another Rs 75 crore by the end of March.

I am not so much worried about incoming business; in fact we are worried about executing some of the growths that we expect next year because banking automation division is poised for a rapid growth.

We are getting into embedded technology areas, we have lot of interest from the market in that direction. So as a high tech company we are quite confident that in the current market scenario Aplab will be doing well and I am glad that the situation is changing. 

Q: Which division is expected to drive growth – power electronic division or the power conditioning?

A: Power electronic division will certainly grow because we have a very ambitious target next year for 100% growth and we know that we can achieve it. So power electronics and petroleum division will be the major drivers, this is only the first Rs 35 crore order, which will come for execution early next year and then during the next year we see a lot more business because now we have international approvals for our products, so it is not just the domestic market that we are looking at.

Petroleum industry is looking for good quality dispensers throughout the world and we are not just selling boxes, we are software solution for retail automation and that business will catch-up too.

Q: The report we have suggests you might do about Rs 134 crore in sales and about Rs 18 as an EPS next financial year, FY08. Would you agree with that target?

A: Next year – yes, maybe if we are lucky we will exceed it.