MRO-TEK posts 15% growth; charts plans to sustain momentum

Our Convergence Bureau
24 June 2003

Mumbai: MRO-TEK Ltd, a leading networking and last-mile access solutions provider, has announced that its gross revenues stood at Rs 96.53 crore with a profit before tax (PBT) at Rs 4.64 crore and a profit after tax (PAT) at Rs 3.24 crore for the year ended 31 March 2003.

The company's revenues for the last year stood at Rs 84.87 crore with a PBT of Rs 9.71 crore and a PAT of Rs 6.94 crore, recording a growth of 15 per cent in revenues and reduction of 53 per cent in profits.

Though the operating margin has been maintained at a level of approximately 24 per cent, the reduction in gross contribution is due to liquidation of certain inventory at the salvage value and absorption of the value of inventory used in research and development (R&D) activities.

Consequently, the PBT too registered a decline, also absorbing a considerable amount by way of "accounting treatment of leased assets, resetting of receivables on conservative principles as well as absorption of revenue expenditure on R&D activities, which is more in the nature of 'investment for future'."

The company's export earning during the year 2002-03 at Rs 3.60 crore grew by over 350 per cent over the previous year.

Says MRO-TEK chairman and managing director S Narayanan: "Our growth objective remains unchanged. We believe that the tough times are behind us and the future looks promising. The growth has been affected to an extent due to the weakening of the global economy and the events that have occurred. With the telecom and finance sectors growing substantially it offers a tremendous opportunity for us. Our strategy is to build on and extend this existing market strength and at the same time be prepared to serve the rapidly growing markets worldwide."