MIC Electronics confident of strong growth ahead

8158 Investors following MIC Electronics. Share this News with them.

0

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

MIC Electronics confident of strong growth ahead

In an interview with CNBC-TV18's Reema Tendulkar and Ekta Batra, MV Ramana Rao, MD and CEO of MIC Electronics spoke about the results and his outlook for the company.

Post your opinion here

 

0

Tweet

Share on Tumblr

ALSO READ See latest News about MIC Electronics See previous management interviews See what other Experts & Brokerages are saying about MIC Electronics MIC Electronics BSE | NSE 30/05/12 Are Mutual Funds betting on MIC Electronics?

In an interview with CNBC-TV18's Reema Tendulkar and Ekta Batra, MV Ramana Rao, MD and CEO of MIC Electronics spoke about the results and his outlook for the company.

Below is a verbatim transcript of the interview. Also watch the video.

Q: It's been a very strong quarter for you all. I believe you have got your revenues at Rs 80.1 crore versus a figure of Rs 57 crore and the bottom-line as well as shown a near 50% jump coming in at Rs 16 crore. Could you walk us through how the quarter has shaped up for you and what the outlook is for the rest of the year?

A: We are going very strong in LED lighting. We did very well in LED displays recent quarter and when compared to the last quarter we grew 44% of PAT and 40% of top-line and we will be growing very strong because of our lot of growth activity in LED lighting segment. Also, display screens for Indian Railways is going very well. We are very bullish and focusing in LED lighting and LED display.

Q: Your margins were 28% in the corresponding quarter last year. What exactly have you done in terms of margins this quarter?

A: It is mainly because of the LED display sales in Indian railways segment, which we got and enjoying monopoly still in Indian railway full color display for passenger amenities. That is the main growth factor. Also the Indian Oil Corporation lighting solutions recently is coming up very well and the production facility is going on in a big way. We are almost spending Rs 170 crore for production facilities on LED lighting alone. So it is picking up drastically.

Q: What is it that you are guiding for a full year performance in terms of your revenues and also in terms of profitability?

A: It is Rs 350 to Rs 400 crore and Rs 90 crore to Rs 100 crore profit.

Q: What's the order book like because you were talking about a very strong LED outlook?

A: Order book now pipeline is over Rs 200 crore-more than Rs 100 crore in LED lighting.

Q: How exactly is the acquisition strategy panning out because you acquired Avni Energy some time back, can you just throw some light on exactly how this company is doing and what are your inorganic plans going forward?

A: We are not that much keen to go inorganic but wait and watch strategy we are applying. But we need lot of marketing and sales production strategies other than R&D. So whatever marketing strategies with sales tie up because of this the revenues in rural will increase because of solar based lighting solutions, we are looking at that sort of segments only. Otherwise we want to grow our own, based on the opportunities only we want to grow.

Q: Just a quick update on your international l markets as well?

A: International market in US thanks to the recent tie up with CTS, Colorado timing system almost every fortnight we are sending one screen to CTS, it's a continuous order for display. In Australia lighting, just we started focusing in lighting but our main focus is India, lighting and display.

Q: Since the outlook is so robust any capacity expansion plans or you are working at 100% capacity and that is sufficient?

A: At present we are using 100% capacity what we did for LED displays, the same thing we are partly using for LED lighting. As you mentioned Rs 170 crore capacities we are expanding for LED lighting solutions.