Get App Open
In App
Open App
you are here:

Compuage Infocom Ltd.

BSE: 532456 | NSE: COMPINFO |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE070C01037 | SECTOR: Computer Peripherals

BSE Live

Mar 31, 16:01
12.61 0.32 (2.60%)
  • Prev. Close


  • Open Price


  • Bid Price (Qty.)

    12.61 (1000)

  • Offer Price (Qty.)

    12.70 (916)

NSE Live

Mar 31, 15:51
12.65 0.35 (2.85%)
  • Prev. Close


  • Open Price


  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    12.65 (66)

Annual Report

For Year :
2018 2016 2014 2008

Chairman's Speech

Chairman''s Message

Dear Shareholders,

FY 2018 marks a momentous year for the Company, as we undertook some of the most decisive initiatives towards building a robust future for the Company and to partner the nation in the transformation towards a Digital India. As the country is taking rapid strides towards a digitized future, new technology is dynamically changing demand patterns across different markets. It is important for us to now strengthen existing resources, and digitalize our products and services.

Our challenge today is not only to adapt to swift developments but also to pre-empt them and lead the way for a sustainable future. To be future-ready, we not only delved internally within our organization, but also explored externally to find new ways of achieving growth. We focused on tracking trends and maintaining proximity with our alliances and channel partners to understand key movements. It is indeed a rare occasion for the industry to witness an environment marked with both challenges and opportunities.

Performance in 2018

Besides changes like demonetization in 2016 and the implementation of GST in 2017, new developments were seen in recent banking reforms, continued pressure on commodity prices and large-scale destocking. Despite this, Compuage delivered yet another year of commendable performance.

We reported revenues of Rs. 4,07,440.78 Lakhs during the year, an increase of 14.73% the previous year. We fast-tracked our sales across the different product lines and reported 11.36% growth at the EBIDTA level and 17.53% growth at the net profit level. Our net operating profit and net profit margins recorded a growth of 4.54% and 0.50%, respectively. Our diversified portfolio, helped achieve profitable growth each year which speaks for the long-term potency of our strategy. Besides, every relevant financial number reported by the Company was better than the previous year, showcasing the strength of our growth programs.

On the pricing side, there was hardly any increase in 2018, yet we reported good numbers. This was largely possible as we continued to explore new markets in India resulting in increased sales. Secondly, we had signed a number of new brands in the last couple of years which showed positive results in revenue mix in 2018.

Industry overview

Our country is finally undergoing the much-awaited digital transformation. The renewed focus on Smart Cities, increasing penetration of the internet in the remotest corners of our country and the implementation of GST are expected to open up new demand pockets for IT systems and services. Deeper penetration of broadband and networking services is likely to create additional demand for the IT equipment across the country. India''s PC penetration is only about 9-10 million a year as against China and US''s annual PC penetration of 60-70 million; so here exists an ocean of opportunities which must be urgently tapped.

Secondly, the other area of greater optimism is the mobility space, especially, the smartphone segment, where there are huge opportunities to be explored. The mobility segment has been growing exponentially in the last few years. Continuing with the trend, India is soon expected to overtake US to become the second-largest smartphone selling country in the world. Presently, the country, has more than 800 million users but only 35% of those use smartphones. Here again, there is immense opportunity for development both in IT and Mobility space with lower penetration on both sides of the businesses.

Marquee events during the year

Perhaps, the best news for the year is the association of Compuage with the well-established international brand, Apple. With the current arrangement, we are limited to the distribution of accessories only, but with a brand like Apple on board, is a big achievement for the business. We look forward to further strengthening our relationship with Apple and take this new business partnership to the next level in the years ahead.

As a distribution company, there is an intense requirement of working capital. In 2018, we designed a three-year growth plan for the Company to gauge the working capital requirement. Based on the execution of our plans, we would take a call on when and what quamtum of capital be raised.

Also in this year, we increased our focus on the mobility and cloud computing segment. Research indicates that low smartphone penetration and the increasing importance of cloud computing owing to inherent advantages are expected to provide immense opportunity for growth.

The other milestone initiative at Compuage in 2018 was centered around the cloud business. It was our conviction that one of the most attractive sectors in India would be the cloud business. So we fortified our presence in this segment during the year by offering a full range of business technology solutions. We plan to emerge as one of the leading cloud distributors by building on this new portfolio. We will provide a complete range of reseller automation solutions, reducing operational hassles and also exploring new markets.

We continued to penetrate further in upcountry locations and increased our partner count during the year. Our partner strength grew from 10,000 in FY 2017 to 12,000 in FY 2018 along with adding 200 new cities with 32 brands to our portfolio.

We recognize that to deliver the double-digit profit growth, we could not rely solely on revenue growth, particularly within the uncertain macro environment. Therefore, we continue to focus on enhancing our operational efficiency and asset optimization in 2018. Our methodical and systematic operations enable us to achieve this goal. Gradually, we built on capabilities and competencies to get significant results. This is providing us scope for expanding our potential.

We organized regular meets with channel partners and retailers during the year at various locations across India to celebrate success, to impart training and to update them on our new products and services. Naturally, this helps to enhance sales volume and extend the reach. We participated in several renowned exhibitions and fairs during the year to showcase our wide range of offerings and enhance visibility.

Changing market dynamics provides us with opportunities to take a fresh look at our product range and focus on high-margin products. With a diverse offering of more than 32 brands across five verticals, we continued supporting our partners by identifying the right solution for them in the right marketplace. This further strengthened our relationship and trust.


It has been a year of significant progress. I am very positive about the future industry prospects that await us, as India steadily moves towards becoming a complete digital economy. The Indian IT and allied industry is well positioned in a growth market. As an individual player in the industry, we have a big window to take advantage of the promising environment. We remain committed to focusing on areas where active management demonstrates clear, repeatable advantages.

With a wide spectrum of future opportunities which have been already identified, I am confident the Company will continue to remain progressive and deliver maximum value to our esteemed Shareholders and all other Stakeholders.

With warm regards,

Atul H. Mehta

Chairman & Managing Director