Q: Should your fully year numbers just be extrapolated for the next four quarters or would you say that you could do even better than Rs 220 crore in the coming quarters?

A: We are very bullish on the market opportunity. Something that we have seen pick up in the market is this multi sim card category and the handset business. We think that market coverage will be looking forward so we are looking at healthy growth in the coming quarters as well. Hence, I would not see as a liner extrapolation. I would see it driven by market coverage and our ability to reach out to more consumers.

Q: Your Q2 estimate is 2.20 and for it H1 is 3.37. What can we expect for the full year? Can we expect an earning per share (EPS) of around Rs 8, if you could do again 2.2 in Q3 and Q4 or could it be around 6?

A: We are growing at the rate of anywhere between 10-15% QoQ in the last two quarters. So we should be able to maintain a certain growth rate in this range over the next two quarters. The market is very intensely competitive. Hence, it is also a function of the competition offerings. However, at the end of the day, I think we should be able to maintain this growth. Therefore, you would see the EPS hold.

Q: Will we see an EPS of Rs 2 QoQ from now?

A:  That is the objective that we are working on.

Q:  A plateau has come in the telecom service. The industry is mature and is reaching a bit of a saturation point. Would you say that you could see some early signs of a saturation or declining pace of growth in the handset category as well?

A: This is the telecom service provider market where we have seen numbers cross 450 million mobile subscribers. The numbers reported of 500 million telecom consumers. So the market penetration has gone up significantly. However, the market will grow since more networks reach out to uncovered areas. In the handset business, the replacement cycles are shortening and there are a lot of new innovations happening like the ones we brought in the multi-sim category. This product is also evolving from just being used for communication but also for information and entertainment. Therefore, this is becoming a digital lifestyle business. We are seeing two kinds of players evolve, one is the player who builds the networks which are primarily the telecom companies and the other is who will build devices and services which the consumers would buy and use the networks for. So the whole space of devices and services is going to grow exponentially and we are seeing the fact that consumers are now asking us as to what one can do to the devices more than just buying the device. So the addition of services to this space and the whole convergence of mobile and internet will lead to an exponential growth in this technology. Hence, while you will see the telecommunications business moving into more of going forward, you would see a hue services business evolving in the near future.

Q: You have had margins of about 11% this quarter. In an industry where we are going to see such competition with the price range in about 3,000-4,000, do you think you can continue to work on such margins. Is this realistic?

A: Margins is a function of how we look at the product mix going forward. We have seen that as we have come out with new products this is a market that the prices drop every quarter of a particular product. Therefore, the key is to keep coming out with innovative products every quarter to keep your margin growths happening. If you look at below your gross margins effectively, the money is more investing in branding and distribution. Hence, it’s a function of brand coverage and market coverage. So the key would be to ensure that we can keep the product pipeline intact and making sure that we can continue to come out with new offerings for consumers. The other bit on margins is that we see this business also evolving into not only a device business but a device plus services business. We also see an annuity service revenue stream aligning with this business. Therefore, the economics drive the margins in a different way as we go forward. So the business is also changing from just a device business to a services business.