Boosted By BPO

Updated: May 22 2003, 05:30am hrs
Tata Telecom (TTL), the telecom equipment-major, has posted a moderate 4.9 per cent increase in net profit at Rs 8.3 crore during the quarter to March 2003 despite a substantial 17 per cent increase in net sales to Rs 107.5 crore. Piggybacking on the recent boom in the IT-enabled services (ITES) and business process outsourcing (BPO - call centre), the company has been continuously reporting double digit growth in the topline during the last few quarters. TTL is a dominant player in the call centre solutions business with a 60 per cent market share. GE, a prominent name in the BPO industry, is TTLs largest client.

A large proportion of traded items in its product portfolio comes in the way of the company realizing better margins. During the fourth quarter the share of purchases in net sales declined to 46.8 per cent (51.6 per cent) at Rs 50.3 crore. During FY2002-03 despite 21 per cent surge in net sales at Rs 318.2 crore, purchases grew even faster at 45.5 per cent to Rs 156.6 crore. Encouraged by the recent trend in the BPO business, TTL expects its topline to grow at 25 per cent (CAGR) in the next three years. TTL has recently joined hands with three Tata Group telecom companies - Videsh Sanchar Nigam (VSNL), Tata Teleservices and Tata Internet Services in forming a single point interface to offer a range of telecom services to corporate customers. T

Samtel Color
Samtel Color has put up a rosy show with a 26.8 per cent growth in sales at Rs 775 crore during the year to March 2003. Low cost finance, major sports events, rural penetration and improvement in general economic scenario buoyed up sales of colour televisions (CTVs). Growing use of computers at home and in the offices also helped to lift sales of picture tubes.

Operational expenses rose 30 per cent at Rs 662.4 crore on account of 54 per cent rise in other expenses at Rs 123.8 crore. Operating profit grew 14.36 per cent at Rs 122 crore. Margins declined from 17.4 per cent to 15.7 per cent. Interest outgo went up 42 per cent at Rs 45.4 crore and depreciation 60 per cent at Rs 45 crore thanks to Rs 280 crore spent on capacity expansion. Net profit declined by 23 per cent at Rs 19.8 crore. Samtel is the largest manufacturer of picture tubes for television, diflection yokes and monitors. It has a state-of-the-art technology for its products backed up by an in-house R&D centre. Samtel has alliances with world leaders like Mitsubishi Electric Corporation,Japan, Corning Incorporated, USA and Samsung Corning, Korea. Samtels Multimedia Division has been manufacturing world class monitors for computers. Recently, the company has spent around Rs 280 crore for increasing the capacity of colour picture tubes from 3.1 million tubes to 5.3 million tubes. The domestic demand for colour TV tubes is around 6.6 million pieces against up form 6.15 million pieces last year.

Laxmikant Khanvilkar & Dhruv Rathi