See no major contribution from VAS this yr: Spice Mobility

2748 Investors following Modi Olivetti. Share this News with them.

0

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

See no major contribution from VAS this yr: Spice Mobility

Speaking to CNBC-TV18, BK Modi, chairman of Spice Group said retail has been the main feature for the quarter. "Our revenue has really jumped nearly double from last year for the same quarter," he added.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Your Stocks on CNBC-TV18 Watch the full show » ALSO READ See latest News about Modi Olivetti See previous management interviews See what other Experts & Brokerages are saying about Modi Olivetti S Mobility BSE | NSE 31/05/12 Are Mutual Funds betting on S Mobility?

Mobile handset manufacturer Spice Mobility reported net profit at Rs 54 crore for the quarter ended September 30, 210. "Pursuant to the amalgamation of Spice Televentures with Spice Mobility during the period, the figures of the results are not comparable to that of the previous quarter," mobile handset manufacturer said in a press release.

The company had a net profit of Rs 16 crore in the July-September quarter in 2009. Net sales stood at Rs 479 crore in the quarter under review, while it had a net sales of Rs 219.7 crore in the same period previous fiscal.

Speaking to CNBC-TV18's Sonia Shenoy and Ekta Batra, BK Modi, chairman of Spice Group said retail has been the main feature for the quarter. "Our revenue has really jumped nearly double from last year for the same quarter," he added.

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

Q: Can you take us how the quarter has been for you?

A: The quarter has been a very nice. For the first time the retail business has turned around. As part of amalgamation, we have retail, value-added services (VAS) and device business being put together. If you see from the published result the net profit has come to Rs 71 crore of the combined entity. We had this issue about retail not being profitable but this quarter our revenue has really jumped nearly double from last year for the same quarter. So retail is the main story this quarter while other businesses are going as usual. Retail is where I think major change has taken place.

Q: Can you just highlight what your margin picture was for your consolidated revenues this quarter and also if you could just expand on margins within the retail venture.

A: If you look at total margin of the business against a revenue of a little less than Rs 1,000 crore, we have an EBITDA of nearly 8% to 8.5% and we have a net profit of 7%. This is something, which is on a positive side. Last year we had a major loss in the retail side and this year the retail has turnaround.

Q: A word on the other side as well because you spoke about Spice Retail, what about the value added services and the applications business? What is the individual growth been in those spaces and how much do you expect it to grow by in the next quarters?

A: On the VAS side, the business has not grown much. It is in-line with out what is last year. There was about 10% growth but the major thing is that we are waiting for 3G and I have been saying that our company is ready to take the 3G VAS in a big way. The company has just acquired a company in Singapore, which is basically for mobile internet and VAS service based on device rather than based on service providers and operators. F

or VAS, I would say, we will see a major change once the 3G services are already in offing. We are already talking to all the operators who are putting the 3G service and they are very much interested to tie-up with us for VAS which will be working on 3G. The major jump on VAS you would see once the 3G services are in place, which I think will happen by the end of this year.