See 35-40% growth in technology segment next year: ICSA

7574 Investors following ICSA. Share this News with them.

0

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

See 35-40% growth in technology segment next year: ICSA

In an interview with CNBC-TV18, G Bala Reddy, CMD, ICSA India, spoke about the results and his outlook for the company.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » RELATED NEWS ICSA Q3 net profit up at Rs 31.6 cr ALSO READ See latest News about ICSA See previous management interviews See what other Experts & Brokerages are saying about ICSA ICSA BSE | NSE 31/05/12 Are Mutual Funds betting on ICSA?

ICSA (India) has reported net profit of Rs 31.6 crore for the quarter ended December as against Rs 30.2 crore in same quarter the previous year.

In an interview with CNBC-TV18, G Bala Reddy, CMD, ICSA India, spoke about the results and his outlook for the company.

Below is a verbatim transcript of his interview with CNBC-TV18`s Latha Venkatesh and Gautam Broker. Also watch the accompanying video.

Q: Your sales growth is looking good, but margins have declined slightly, what is the reason for that?

A: The reason is that though the revenues have gone up by about 17% YoY and about 12% QoQ, the net profit margin has slightly come down because of infrastructure division, it is about 70%, previous quarter was about 67%. So, because of that, the 9% Q2 net margin has come down to 8.65%. But as we have already taken certain kind of ensurities in the form of entering into the SCADA business and the tenders are out in certain states. We are expecting to about three-six months business to roll out in the technology segment. We are expecting next financial year to be far better in the overall margins as well as growth of overall operations side.

Q: What do you expect your order book will grow by and therefore what kind of revenue growth are you expecting?

A: The order book as of now is about Rs 1,781 crore, out of which Rs 123 crore is the technology segment. The order book that we expect from the technology segment, out of the overall Rs 2,500 crore tenders that are going to come up, we expect at least Rs 600-700 crore to come to ICSA, whereby the technology segment will be better.

This year as we said is about 15% growth overall and next year probably yes we are expecting better. With the technology segment going up from 30% to maybe about 35 to 40%.

Q: Could you tell us of the total order book in the ESS segment as of now?

A: It is about Rs 123 crore now and infrastructure is about Rs 1,658 crore as of now.

Q: But that was lower than what we expected at the end of Q2 about Rs 1,900 crore, why has there been a decline and are you expecting any order flow going forward?

A: Yes. In the coming three months, the last quarter, we are expecting some orders to be finalised which are in the process.