• LED Video, Graphics and Text Displays
• LED Lighting Solutions
• Embedded, System and Telecom software
• Communication and Electronic Products
Today, MIC's flagship products are LED Video Displays (indoor / outdoor / mobile), that have become an integral part of Sports Stadiums, Transportation Hubs, Digital Theatres and Theme Parks, Advertisements and Public Information Displays.
Headquartered at one of the fastest emerging IT cities, Hyderabad (India), it has nation wide presence in the form of a vast network of marketing, sales and service support centres in all metros of India. To meet the demand of its products worldwide, it has offices in Australia,Korea and USA. Now the company is gradually setting up operations in other international markets.
Company has posted good results.
In an interview with CNBC-TV18, MV Ramana Rao, MD & CEO, MIC Electronics, spoke on the quarter gone by and the road ahead.
Here is a verbatim transcript of the interview.
Q: Can you take us through your numbers although your operating profit margins and your profit after tax (PAT) has done well, your sales has dipped a little bit this time around, why is that?
A: This operating profit increase is because we are focusing fully on LED related business. We have added a strong LED lighting also recently in railways, public sector undertakings (PSUs) and commercial and institutional lighting.
So that is adding a lot of margins because we are exiting our telecom business as promised. Even the topline is low but the bottomline is up because of the business we are focusing on.
Q: Could you give us a segmental breakup of your revenues of the four divisions that you are currently in?
A: At present, three divisions i.e. LED lighting and LED displays. So we took it as a LED division that is Rs 56 crore, Communication and Infotech is Rs 6.3 crore. Total revenue is 62 crore standalone without subsidiaries.
Q: The funds that you raised for your LED product division expansion, if you could tell us when would this expansion get completed and when will it start showing in your revenues?
A: It is being continued because at present we started LED lighting in four segments only i.e. railways, outdoor, indoor and portable and solar. In that we are adding the products instead of adding some more divisions. We are adding the production capacities one by one.
Q: So how much revenues do you plan to do from all this in this year, can you give us a ballpark figure?
A: The topline will be between Rs 280 and Rs 300 crore and bottomline will be Rs 85 crore approximately by end of June. Ours is a June ending company.
Q: You are also bidding for orders in the power utility space, can you tell us how is that shaping up?
A: Yes, we are fortunate to be a empanelment with Power Finance Corporation (PFC) where at present Rs 10,000 crore are allotted for entire India. Since we are very good at networking and power related projects - already we are in LED lighting - we have extended it to management of APDRP i.e. Advanced Power Development Reform Programme.
We are planning to bid in 5-6 states and we want to win at least in 2-3 states where we can get a topline of Rs 1,000 crore in the coming two years in the segment itself with excellent profit margins.
Q: Rs 1,000 crore alone from this power utility division?
A: In fact for the Eleventh Five Year Plan, funds are allotted by PFC. We did not take any loan, they give funding also for implementation and the technical expertise for implementation.
Q: You already have a new vertical in lighting, you are also looking at launching new products as well. A whole lot of diversification on the cards, are you looking at raising any more funds?
A: Not at present.
THIS IT WHAT I GOT FROM A FORUM ABOUT THIS COMPANY =
You've probably heard about India's ever-increasing power
shortage...
If you live in a big city like me, it's just a story you hear about
in the news with increasing frequency.
But if you live in a small town where power cuts of 3 to 8 hours
per day are quite common... then India's national 15% energy
deficit is very much real to you.
More than 1.6 billion people in the world lack access to
electricity - and one out of every four of them lives in our
country.
Today there is an easy way for you to help India save massive
amounts of energy... while keeping the lights on throughout the
country 24 hours a day, 7 days a week...
And the best thing about it - you can also get paid handsomely for
participating in this effort.
I'm talking about becoming part owner of an energy-saving
technology company whose share price could potentially triple
within the next 4 - 5 years.
The details on this little-known publicly traded firm -- which we
will call 'Company X' for now -- are included in a just-published
FREE Special Report titled, Superstar Smallcaps.
And here are the full details about it...
Saves Energy
With Your Lights On
India's power-generating capacity is currently 15% below the levels
required to provide consistent power to everyone in the country.
According to an article in Business Week, the government of
Maharashtra, our most industrialized state, has announced it is
facing a severe power shortage.
And the bad news is this shortage won't be eliminated any time
soon.
According to a senior government official, India will miss the
government's target of adding 78,577MW of power generation capacity
by 2012 because of shortage of equipment.
Now, Company X's technology doesn't help generate more electricity
or help our power plants produce electricity more efficiently.
Rather, it makes an energy-efficient light source that reduces
electricity usage by 40% to 90% depending on size and model.
Here's how this amazing technology works. . .
Instead of using a filament as the lighting source, like in
conventional electric bulbs...
Or gases, like in halogen and fluorescent light bulbs...
This technology shines brighter by using light-emitting diodes or
LEDs as the source of illumination.
You may think of LEDs as those little digital displays in pocket
calculators and on other electronic devices.
But large LEDs in fact generate an extremely bright light with
minimal energy consumption.
To give you an idea of how incredibly efficient Company X's
new LED lighting technology is, a conventional 100 Watt
incandescent bulb generates around 15 lumens of brightness
per Watt of electric current.
By comparison, Company X's new LED technology generates up
to 20 lumens with only a 5 Watt bulb.
The greater efficiency of LEDs reduces the energy demand of
lighting systems. And in addition, the LED bulbs also have a longer
life.
So overall, replacing conventional light bulbs with LED lighting
can cut energy consumption by as much as 90%:
Source Data from (TSAO, 2004, 2002);
1The costs are in "street costs," estimated approximately 2 times higher than the original equipment manufacturing costs. The lamp cost
represents the cost of the SSL lamp, not including any fixture costs which would be necessary to complete a lighting system.
Company X with its order book already full
is now available at 80% off. . .
Company X is the only company in India to have design-tomanufacture
capability for making LED display solutions... which
means it has virtually no competition to worry about.
Indian Railways is soon expected to float tenders for replacing all
of its current displays and lighting with LED-based technology,
which could mean a huge potential increase in orders and revenues
for Company X.
And Company X's products are also sold internationally.
The global LED market is expected to continue to grow at an average
annual rate of 20% for the next 3 years, which is sure to benefit
this company immensely.
Company X has formed a joint venture with the Latin American
Football Corporation to focus on the lucrative LED display
opportunities in sports stadiums across the globe.
The bottom line is that the stock could triple within the next 4 -
5 years. And investors who get in now before the price starts to
move up will bank the lion's share of the profit
long term outlook seems good FOR STOCK.
