Broadcasting solutions provider VTIPL’s FY19 rev projected to touch Rs 90 cr

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MUMBAI: Noida-based Visual Technologies India Private Limited (VTIPL) is eyeing big revenue growth in FY19 after a lackluster performance in FY18. VTIPL, which posted revenue of Rs 40 crore in H1 FY19, is expecting a revenue of Rs 90 crore for the full fiscal.

The revenue has remained volatile for the company at Rs 44-92 crore over the five fiscals through 2018 and is driven by demand from the TV channels segment.

Revenue was higher when work orders for supplying digital satellite news gathering vans were received, and lower when these orders became fewer. In fiscal 2018 revenue dropped by 13% to Rs 66.38 crore compared to Rs 76.38 crore. The net profit stood at Rs 2.15 crore in FY18 compared to Rs 1.06 crore.

Established in 1996, VTIPL has its registered office in New Delhi and corporate office in Noida, Uttar Pradesh. The company provides hardware and consultancy solutions in the domain of audio/video broadcasting.

Recently, Crisil had reaffirmed its ratings on the bank facilities of VTIPL at ‘CRISIL BBB-/Stable/CRISIL A3′.

The ratings continue to reflect the extensive experience of the promoters in the audio-video broadcasting solutions industry, strong ties with reputed suppliers, and a moderate financial risk profile.

These strengths are partially offset by volatility in revenue owing to high dependence on the TV (television) channels segment, exposure to fluctuations in foreign exchange (forex) rates, and large working capital requirement.

The promoters’ experience of nearly two decades has helped develop a sound track record and technical expertise in audio-video broadcasting solutions, and forge relationships with customers, largely news channels across India.

The company has tied up with reputed overseas suppliers such as Panasonic Corporation and Ross Video Limited and acts as a distributor for their audio-video equipment in the domestic market.

The company purchases audio-video equipment from the global as well as domestic markets. Imports account for nearly half the requirement and any sharp fluctuation in forex rates could adversely impact the operating profit margin. The margin was 4.7-7.6% over the five fiscals through 2018, driven by volatility in forex rates and pricing terms with various customers.

The net worth was moderate at Rs 23.57 crore, and the total outside liabilities to tangible net worth ratio comfortable at 1.49 times, as on March 31, 2018. The interest coverage ratio was adequate at about 1.7 times in fiscal 2018.


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