Bartronics India, a zero debt company based in Hyderabad is engaged in providing solutions using automatic identification, data capture (AIDC) technologies and radio frequency identification (RFID) solutions. On November 16, 2007, the Company announced the incorporation of a wholly owned subsidiary, Bartronics America Inc.
For the third quarter ended 31st December 2007, YoY, the company has posted very good results. Its net sales was up almost 4 times at Rs.70.17 crore. Its total expenses also surged equally at Rs.57 crore as against Rs.13.32 crore in Q3 FY07. Of this, the cost on raw materials took away Rs.87.51 crore, which was at Rs.11.16 crore in Q3 FY07. Thanks to the stock-in-trade, the company was able to recoup some of this outgo, yet it continued to remain high. PBT rose over 3 times at Rs.12.34 crore and PAT surged from Rs.3.44 crore to Rs.10.95 crore.
The growth in net profit and total income was primarily driven by the increased utilisation of production capacity at its smart card manufacturing facility, along with a jump in its regular solutions business. The company commissioned its 80-million smart cards per annum facility at Medchal on the outskirts of Hyderabad in July 2007. The company is targeting 40 million cards during the current financial year. It is a major beneficiary of the Railway Budget, which announced that smart card-based ticketing system was on the anvil.
The company is now looking closely at the European markets, to acquire a European company, similar to the one that it had done in the US, for over $50 million (around Rs 200 crore). It is scouting for a company that is engaged in the RFID technology and smartcard solutions.
The company, in January 2008, acquired the assets of Proximities Inc and SRG America Inc for a total consideration of $50 million (around Rs.200 crore), which it raised through issuance of zero coupon unsecured FCCBs.
It plans to utilise the 80-million production capacity at its plant during the next financial year. This, coupled with its overseas plans, is expected to fuel the company’s topline to touch Rs.500 crore next year.
The stock is a good buy at the current rate of Rs.165.
source: sptulsian.com
