Expect to end yr with revenue over Rs 150cr: Zicom

2748 Investors following Zicom Security. Share this News with them.

0

Like this story, share it with millions of investors on M3

Expect to end yr with revenue over Rs 150cr: Zicom

Zicom has sold two security system business units to Luxembourg-based Schneider for Rs 225 crore. In an interview with CNBC-TV18, Anand Swaminathan, CEO, Zicom Electronic Security Systems gave his perspective on the company's business plans in the new year.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Zicom Security See previous management interviews See what other Experts & Brokerages are saying about Zicom Security Zicom Security BSE | NSE 29/05/12 Are Mutual Funds betting on Zicom Security?

Zicom has sold two security system business units to Luxembourg-based Schneider for Rs 225 crore. The company's stock price has jumped 14% on the back of this news. The funds will be used to retire debt and to finance its foray into new industries.

Post the deal, the company will continue to operate in the retail security and fire protection businesses, which together contributed nearly 52% of its revenue of Rs 375 crore last year.

In an interview with CNBC-TV18, Anand Swaminathan, CEO, Zicom Electronic Security Systems gave his perspective on the company's business plans in the new year.

Below is a verbatim transcript. Also watch the accompanying video.

Q: Explain how the remaining part of business that is your products and solutions business is doing at this point in time. What kind of revenue projections you can give for this year itself but more importantly for the coming year as also a bit on how you are approaching the telecom part of your securities business?

A: The products and solutions business actually is more into focusing on the small and medium business segment, the national retail chain of stores. Some of the data points shows that the small and medium-size business (SMB) is one of the fastest growing segments in the market or rather across the globe and India is poised with some of the highest percentage growth in the SMB segment.

So the products and solutions group that we are referring to right now which is the retained business in Zicom. The outlook for the next year could be in the range of 150 crore plus and that is something which is focusing on national retail chain of stores, the individual shops; we are talking about banks which all fall in the small and medium business segment from a utility standpoint.

Q: What is the kind of revenue projections you have for that space FY11, more importantly FY12 so that we have a full year assessment of that business?

A: The FY11 which is the next calendar year the projection is Rs 150 crore?

Q: When I say FY11 meaning the end of this current fiscal year, financial year which ends on March 31. I wanted to know what is your assessment of the current year and then of '11-12?

A: The current year we would be closing our books approximately at Rs 115 crore and we are expecting a conservative estimate; we are not taking into account many of the ambitious plans that we have. But conservatively, we expect to grow at 25% in the coming year which could take us to more than Rs 150 crore and this is purely in the products and solution business.

This excludes to the very first question that you asked about the telecom sector which is a separate business vertical altogether which falls under a vertical called security as a service. Security as a service is an entirely new concept that is gaining momentum in India Zicom has been appointed in the space.

We are actually working with some of the largest telecom service providers in the country, some of the banks where we provide security as a service and it is not a part of that capex purchase. That segment is separate.

It's a little too early to even project, any numbers on that, but we have made very good inroads into that segment being upon it and plus the robustness in terms of solutions in the services we have in the back office like our central monitoring station, it's an entirely new vertical altogether. So the business that I am talking about which is Rs 150 crore plus is purely the products and solutions group.