The Hindu Business Line : TVS-Electronics net up 77 pc

TVS-Electronics Ltd has reported a net profit of Rs 1.47 crore on revenues of Rs 70.91 crore for the second quarter ended June 30, as against a net profit of Rs 83 lakh on revenues of Rs 61.78 crore for the corresponding quarter last year. This represents a 77 per cent increase in net profit, and a 15 per cent growth in revenue respectively for the June 2004 quarter compared to same period last year.

Revenue from products and solutions business group that deals with peripherals, including printers and keyboards, during the quarter was Rs 55.89 crore (Rs 50.40 crore). As per IDC, a research firm, the group increased its market share in dot matrix printers to 44 per cent (38 per cent). Revenue in POS (point of sale) terminals was Rs 7.9 crore despite a price erosion of about 25 per cent over last year's level, said Mr Gopal Srinivasan, Director, TVS-Electronics.

According to Mr Srinivasan, revenue from the electronics manufacturing services - contract manufacturing - group increased by 13 per cent to Rs 40.11 crore (Rs 35.36 crore). With the IT hardware market growing at over 35 per cent and zero duty environment fast approaching, domestic manufacturing will grow significantly. Correspondingly, the demand for peripherals is also expected to grow at over 20 per cent, he said.

During the quarter, the company invested about Rs 4 crore in surface mount technology (SMT), which focuses on electronics assembly of printed circuit boards, he said.

Export of peripherals, including UPS (uninterruptible power supply) system to Europe, increased to Rs 12 crore, a 30 per cent increase.

It has also commenced sales in Nepal and Sri Lanka, and will move to Pakistan and Bangladesh during the current quarter.

"During this quarter, there will be good news on set-top box," said Mr Srinivasan.

Mr Srinivasan declined to give further details.

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