Big jump in MRO-TEK's profit

By Our Special Correspondent

BANGALORE, MAY 28. In what seems a happy augury on the eve of its IPO, the Bangalore-based MRO-TEK Ltd., India's leading manufacturer of hardware for computer networks, has announced a tripling of sales revenue and a remarkable eight fold increase in profit after taxation (PAT) in 1999-2000 over the previous year. During the year under review, sales amounted to Rs. 106 crores and PAT Rs. 16 crores. Earnings per share rose to Rs. 17.77 from Rs. 4.68 in 1998-99. What is more praiseworthy is that the annual sales revenue per employee is over Rs. 1 crore - perhaps the highest in the Indian corporate sector.

According to the chairman and managing director, Mr. S. Narayanan, the current year should also see an equally big growth in sales revenue and more than double the PAT. He bases his optimism on the fact that there will be a surge in corporate WAN deployment due to sharp cuts in leased line rates and opening up of the telecom sector. MRO-TEK, he says, is well positioned to capitalise on the burgeoning opportunities in the backbone service provider/telecom service provider and ISP (Internet Service Provider) markets through its strategic alliances with leading technology companies in Israel and Taiwan.

According to the managing director, Mr. H. Nandi, the company will soon be launching a whole range of new products for the Internet world such as Layer 3 switches, HE servers, web server directors, link proof balances and ADSL modems. An interesting product, based on Israeli technology, that MRO-TEK will be specially pushing this year among hotels and apartment blocks is the Global Loop. This is a sort of modem bank of 24 or 48 ports which enables every room in a hotel or every flat in an apartment complex to be Internet-connected ready at a very low price.

According to Mr. Narayanan, the Bangalore factory is being expanded at an investment of Rs. 5 crores to enable manufacturing HDSL modems, network capacitors and other ISDN products, for which there is a rising demand.

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Section  : Business
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