AGC Networks returns to profitability; Q4 net profit at Rs 47 crore

Essar group firm AGC Networks has finally returned to profitability after reporting losses for almost nine quarters.

The technology solutions integrator reported a net profit of Rs 47 crore for the fourth quarter ended March 31, 2015, compared to a net loss of Rs 55.25 crore in the corresponding quarter last fiscal. On a sequential basis too, the company reported a net profit, from a net loss of Rs 3.5 crore.

Revenue for the quarter at Rs 241.6 crore saw an increase of 36.5% from Rs 176.94 crore in the same quarter last year. On a sequential basis revenue was up 3.8%.

The company which has been on a transformation roadmap had turned profitable on EBITDA level in the third quarter ending December 31, 2014. For full year also the company reported net profit of Rs 14.77 crore from a loss of Rs 282 crore in FY2013-14, topline grew by 15.2% at Rs 888.78 crore.

The business has seen traction due to the changes the new management was bringing in. "We have been working towards improving our profitability. Having achieved that we will now focus on creating growth engines. Sharp focus on core and strategic areas in each of AGC's geographies underscores our overall business financials," said Anil Nair, MD & CEO, AGC Networks.

Nair said that going ahead the company will have three growth focus area: growth in technology, which may also have inorganic opportunity, entering new geographies and improving productivity.

AGC has presence in four vertical, unified communication (UC), network infrastructure, cyber security and enterprise application. "We are strong in the UC space, but in the other three we see huge headroom for growth. We may look at acquisition in this space. Something may be possible this fiscal as well," added Nair.

From a geography point of view, AGC is expanding its offering into the US in regions such as New York, Florida and Chicago, Middle East and Africa (Abu Dabi, Saudi Arabia and Tanzania) and ramping up presence in Indian cities such as Hyderabad and Gujarat.

Amol Thakore, CFO, AGC Networks also added that the company has turned cash flow positive in all geographies. "Our ability to become cash flow positive will aid our inorganic plans in future," said Thakore.

The company also announced the appointment of Jangoo Dalal, an industry veteran, to its board. His prior roles in a career spanning 24 years include his tenures as President India & SAARC, Avaya India and President India and SAARC at Cisco.