MIC Electronics to focus only on LED displays & lightings

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MIC Electronics to focus only on LED displays & lightings

In an interview with CNBC-TV18, MV Ramana Rao, MD and CEO, MIC Electronics says, the company’s focus is only on LED displays and lightings. “We want to focus only these two fields because the opportunity is too big,” he adds.

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In an interview with CNBC-TV18, MV Ramana Rao, MD and CEO, MIC Electronics says, the company's focus is only on LED displays and lightings. "We want to focus only these two fields because the opportunity is too big," he adds.

He further says, the two verticals are growing very well. Even the order book is very strong in lighting, he says. "The lighting breakthrough may come in 2012. So, we are doing pretty strong," he adds.

Also read: Cholamandalam Invest sells 6.75 lk shares of MIC Elect

Below is the verbatim transcript of his interview with Ekta Batra and Reema Tendulkar of CNBC-TV18. Also watch the accompanying video.

Q: Can you just give us a brief on what exactly happened in your last quarter because your revenues or your sales were down around 21%? Could you just tell us about what happened in terms of your sales and any sort of pressure we can expect going forward?

A: We have sold InfoSTEP. Our existing focus is only on LED displays and lightings, LED lighting, which is charging up very high. We want to focus only these two fields because the opportunity is too big and we are not able to manage the other things. That's why we sold that. So that is why the turnover was down.

Also, our main focus is LED displays for almost all railway stations. Three weeks ago we got Rs 40 crore orders. We are enjoying monopoly in this line. We are going very strong in LED displays in railway, almost more than 600 stations. We are still a monopoly player.

Also, the technology upgradation for screens is underway. As the picture quality is improving, the next generation technology is coming for outdoor also. Recently you might have seen Nokia advertisement in Delhi and Nautanki in Gurgaon, Nautanki Corporation Kingdom of Dreams. In all these fields, we did upgradation of technology including 3D.

Similarly in lighting, we are doing very strong in government and PSUs. So that is a reason to refocus ourself further in displays and lighting. The two verticals are growing very well. Even the order book is very strong in lighting. The lighting breakthrough may come in 2012. So, we are doing pretty strong.

I can proudly say that we can maintain the monopoly. Being an initial lighting division, little inertia will be there obviously for a bulk production. We are out of all these issues and we are pretty strong in two verticals.

Q: In this quarter, you all have also accounted for about Rs 2.3 crore of an exceptional expense on account of bad debt, anymore bad debts that the company will have, which will show up?

A: Not much. Only two things are there, escpically DMRC and MCD and one export order that is SLM.

Q: Could you quantify the potential size, if they go?

A: Maybe maximum to the tune of Rs 5 crore roughly. At the same time, we are not giving any credit nowadays. Because of the demand, we are taking advances also in lighting division.

Q: Now that you are going to be focusing on your LED business, could you give us a growth in FY12, in percentage terms?

A: In percentage terms, the compounded annual growth rate (CAGR) is more than 30%.