Will close FY12 order book at Rs 1,000-1,200cr: Bartronics

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Will close FY12 order book at Rs 1,000-1,200cr: Bartronics

In an exclusive interview to CNBC-TV18, Sudhir Rao, managing director and COO of Bartronics India says going by the last year’s performance, the company can expect to close this year somewhere between Rs 1,000 crore and Rs 1,200 crore.

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Bartronics See previous management interviews See what other Experts & Brokerages are saying about Bartronics Bartronics BSE | NSE 30/05/12 Are Mutual Funds betting on Bartronics?

In an exclusive interview to CNBC-TV18, Sudhir Rao, managing director and COO of Bartronics India says going by the last year's performance, the company can expect to close this year somewhere between Rs 1,000 crore and Rs 1,200 crore.

He says the company has an order worth more than Rs 300 crore from the financial inclusion business that is expected to flow in from the third quarter of the current financial year. "Also, at present, 10-15% growth is expected from our US operations," Rao adds.

Below is an edited transcript of Sudhir Rao's interview to CNBC-TV18. Also watch the accompanying video.

Q: You are undergoing some amount of restructuring in the banking and citizen service operations. What exactly does it mean?

A: We are undergoing series of internal reorganisation, in terms of trying to define the business lines. Hence, it offers more transparency as far as the external world is concerned, and also brings in more focus into each of our business lines.

There are two entities branched out -Bartronics banking solutions, pertaining to the financial inclusion base, and the Bartronics citizen services subsidiary that will take care of the citizen services businesses which the company has got into.

Hence, from a company perspective, the parent company continues to focus on providing solutions based on automatic identification technologies and the two subsidiaries focus on specific lines of businesses.

Q: On the US operations, where there is strong growth most of this is exposure to the BFSI area. Are you holding 10-15% guidance given what is happen with global developments or would you say that guidance is under review particularly in terms of the US contribution?

A: At this moment 10-15% is the minimum growth that is expected out of our US operations. If we focus on the immediate past performance, the main jump has come from our Asian operations headquartered in Singapore. It is a jump not sustainable over the entire year, hence, we are expecting more modest growth overall from the company's perspective somewhere between 15-20%.

Q: Can you take us through your current order book and what you expect in terms of execution then for FY12?

A: For FY12, the current business order books on the traditional lines of business stand at around Rs 750 crore, which includes the smart cards and the solutions business. Also, we already have an order worth more than Rs 300 crore from the financial inclusion business which is expected to start flowing in from the third quarter of the current financial year.

We also have the citizen services business where we expect things to move from the third or the fourth quarter of this particular year. Hence, at the end of the year if we look at the last year's performance of approximately Rs 900 crore we can expect to close this year somewhere between Rs 1,000-1,200 crore.

Q: Focusing back on restructuring again, we understand that there are some concerns from institutional investors who had asked you to basically undergo this restructuring. Can you take us through that?

A: It is not restructuring, we are looking more at a reorganisation. It is an internal decision and something that we have shared with our shareholders during the last annual general body meeting, where we informed the shareholders that we would like to take a look at our existing business lines and try and bring in more focus on each areas of business. Hence, it is definitely not a reactionary step; it is more of strategic step that the company management has taken, in terms of building the business for the future.