Information Technology (IT) products, services and solutions provider Zylog Systems Ltd is expecting a revenue growth in its Wireless Fidelity (WiFi) business from Rs 30 crore, last year, to Rs 65 crore this year along with doubling its retail customer base for the business. The company is planning to invest around Rs 80 crore this financial year, in the WiFi business, said senior executives from the company.
“We have a retail subscriber base of 52,000 customers for the WiFi business now. Our plan is to increase it to 100,000 customers by March 31, 2012,” said S P Srihari, global chief financial officer, Zylog Sytems Ltd.
He added that the WiFi business has added around Rs 30 crore to its revenue in the last fiscal year and it is expected to grow to Rs 65 crore in the current financial year. The company is present in seven states including Tamil Nadu, Karnataka, Andhra Pradesh, Punjab, Gujarat, Haryana and Madhya Pradesh.
The company also expects double the revenue for its e-governance business in India. Last fiscal, the revenue from e-governance business was at Rs 25 crore and it is expecting a revenue of Rs 80 crore from the business this year.
Zylog currently has three customers in the e-governance segment, in India, and plans are to add three more this year, said P Srikanth, director, Zylog Systems. According to reports, the company forayed into the e-governance and wi-fi businesses in FY10.
Going forward, the target is to grow the WiFi business to Rs 500 crore in next five years and the e-governance to around Rs 300 crore in next two to three years, they said.
The company is also planning to estabish its physical presence in Australia, Carribian region, South America and South Africa by setting up sales offices or subsidiaries. In Australia, plans are to have a subsidiary while in other places it would set up sales offices, said Srikanth. The company at present has presence in US, Canada, Europe, Middle East, Singapore and Malaysia, apart from India.
On inorganic growth plans, the officials said that it is discussion with some companies where it would look at cross selling its existing products and services.
The company has registered an increase of 68 per cent in net profit at Rs 56.63 crore for the quarter ended March 31, 2012, as against Rs 33.70 crore for the same period of previous fiscal.
The total income grew 34.88 per cent at Rs 676.09 crore for the quarter, compared to Rs 501.23 crore for the same period of last year.
For the first time, the titans of the Indian IT industry will show their financial muscle on the same day.