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| Bartronics eyes Rs 500cr from govt this fiscal |
| K Rajani Kanth / Chennai/ Hyderabad May 02, 2009, 00:45 IST |
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Bartronics India Limited, a Hyderabad-based provider of automatic identification and data capture (AIDC) and radio frequency identification (RFID) solutions, expects to garner Rs 500 crore revenues from “the recession-proof government segment” and an uptick of 16-18 per cent in net profit margins on the projected topline of Rs 1,000 crore for the current financial year, said managing director Sudhir Rao.
“We have already notched up orders worth Rs 400 crore from the domestic market this year. Of this, 50 per cent is from the government sector including smartcards, driving licence projects in states such as West Bengal, Orissa, Rajasthan, Maharashtra and Kerala, and financial inclusion and national identity card programmes, which will start yielding revenues from the second quarter of FY10,” he told Business Standard.
The earnings before interest, taxes, depreciation and amortisation (EBITDA) margins, however, are expected to remain at 28-30 per cent, he added.
For the year ended March 31, 2009, Bartronics India reported a growth of over 55.26 per cent in net profit at Rs 75.11 crore, as against Rs 48.37 crore in the last financial year. Net sales for the full year stood at Rs 583.29 crore, as compared with Rs 269.74 crore in the previous year, up 116.24 per cent. While the government sector contributed 15 per cent to its overall revenues in FY09, RFID and other AIDC technologies accounted for the rest.
Rao said the company intended to focus on providing RFID solutions in logistics and supply chain management areas this year, and had already bagged orders worth Rs 200 crore from the Indian Railways, Container Corporation, Gati Limited, Vizag Port and the Jawaharlal Nehru Port Trust in Mumbai. “Besides, our US and Singapore subsidiaries – Bartronics America Inc and Bartronics Asia Pte Limited – are expected to contribute Rs 200 crore and Rs 50 crore respectively to our topline this year,” he said.
This year, the company would also look at consolidating its existing business and focus on the Aapke Dwar project, which was not there last year, Rao added.
Aapke Dwar, a project of Delhi Municipal Corporation, envisages setting up 2,000 information kiosks in the municipal limits of the national capital. The project is worth Rs 5,000 crore in revenues over the next nine years, starting 2010. Besides transactional revenue, Bartronics also gets the rights to the advertisement revenues that would emanate due to the physical location of the kiosks and leveraging the network of kiosks.
“Phase-I of Aapke Dwar, involving setting up of 300 kiosks, will be rolled out by October 2009, and we will be adding 400 kiosks every quarter thereon. The entire project will be ready by September 2010. Even if we are able to put up 1,000 kiosks by March 2010, about Rs 100 crore will flow into our revenues,” Rao said, adding the project would generate Rs 1,000 crore revenues in FY11.
The company plans to fully utilise the 80-million production capacity at its smartcard manufacturing facility in Hyderabad this fiscal, which was 75 per cent last year.
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