By K V Ramana, DNA-Daily News & Analysis
Hopes Aap ke Dwar project will drive up revenues in the third quarter
Automatic identification and data capture (AIDC) and smart cards major Bartronics hopes to make the most of banks’ financial inclusion drives.
Even as it has recorded flattish growth for the quarter ended June 2010 compared to the first quarter of the previous financial year, the company is expecting significant revenues with the banking sector.“The opportunity being offered by banks is going to be significant in the days to come. Several banks are calling for bids from smart card and identification specialist companies for supply of cards as part of their financial inclusion plans. We have the edge over competition and we are confident of bagging several such bids,” Sudhir Rao, Bartronics managing director, told DNA Money.
“We already have orders worth about Rs 20-25 crore from the banking sector. We have also emerged L1 with Andhra Bank for supply of smart cards and on approval the order would be worth Rs 33 crore. We are also hoping to get an order from Bank of Maharashtra. By the year-end, we are expecting significant jump in the order flow from the sector,” Rao said.
For the quarter ended June 2010, Bartronics recorded Rs 163-crore net revenue, which is same as in the first quarter of the previous financial year. The net profit too was at Rs 22.5 crore as against Rs 24 crore in the corresponding period.
As at the end of the first quarter, the company had an order book of Rs 750 crore including Rs 200 crore from smart cards and the balance from AIDC solutions. The orders on hand would be executed in 14-18 months from now.
“The performance in the second quarter too is expected to be flattish. But, the third quarter performance would be good on expectations of the Aap ke Dwar project flowing in revenues in that quarter,” he said. Though the company’s guidance of Rs 1,400-crore revenue by the year end looks difficult, Rao said the revenue target would prove achievable form the Q3 onwards.
The company has been working with the Municipal Corporation of Delhi (MCD) to set up 2,000 G2C kiosks at various locations in the national capital.
For the current financial year, the revenue from the kiosks would be available for about six months and the revenue from this project is expected to be about Rs 250 crore. During the first full year of operation of the project in 2011-12, the company is expected to rake in about Rs 500-crore revenue from the project.
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