Sterlite Technologies has been buzzing on the back of cabinet approving the Digital India Scheme through which the Modi government plans to revolutionise e-governance and connect the nation through broadband and internet.
Anand Agarwal, Director and Chief Executive Officer, Sterlite Technologies looks at infra creation for Digital India Scheme execution.
Besides, a significant growth in telecom orders has been seen, says Agarwal in an interview with CNBC-TV18, adding that order pipeline for transmission sector is also set to improve.
Below is the verbatim transcript of the interview:
Q: Could you tell us the optimism that we have seen in the market about Digital India Scheme. Is this justified, for example what kind of growth do you see to your business model over the next few years because of Digital India Scheme?
A: We believe that the Digital India Scheme, which the Prime Minister announced is a culmination of his vision, his dream as to what Indian citizens need to get empowered with the e-governance schemes and it is happening at various level, it is happening at the application level, it is happening at infrastructure as well as manufacturing. However, what was lacking till date was the fact that there were pretty ambitious schemes but not being governed by central body. We understand that Digital India committee proposes to do that. Therefore, while on one side we have the National Optical Fibre Network, which is taking fibre to all village panchayats, there is a national knowledge network, which is to connect all universities. All these several programmes have been there but we believe with the current level of emphasis, with the current level of focus that the PM has, definitely it should culminate into pretty good business.
India today is a country that is very good in terms of voice connectivity but very poor in terms of broadband connectivity and the fibre penetration which needs to happen, it lacks quite a bit. So, we definitely believe that it should augur well for our businesses as well.
Q: When you say that it's a good business opportunity for the likes of Sterlite Technologies. Where exactly would you come in the value chain and in such an opportunity how much quantum of an order would be?
A: For the last few months we have been announcing some of the orders which would eventually get linked to Digital India programme. We got orders for the National Optical Fibre Network, which is supply of optical fibre cables that eventually goes into connectivity in villages. We have got network for spectrum order which is close to about Rs 2,000 crore which is supply, install and maintain a network for about ten years. Therefore, in terms of value chain, it will be in supply, it will be in establishing the network; it will be in terms of operating and maintaining networks as well.
The details currently are scratchy; the numbers that we understand are in excess of 1 lakh crore that will go in. Our focus will be in terms of infrastructure creation as well as in terms of the products that we manufacture and supply. We are currently not in the content part, in the applications part but we believe there will be a sizeable sum that goes towards the basic infrastructure creation.
Q: Your order book is at record high right now but your Q1 numbers were quite interesting because even the topline fell. What is wrong right now, execution is wrong or is there something else, was Q1 an aberration and what is the outlook for the rest of the year?
A: We have two different segments, there is a telecom segment and there is a power segment. The telecom segment is on a growth path and the order book everything is increasing there. On the power segment, there is a bit of a correction that is going. The translation sector within the country works on a bit of a lag with the generation sector, so the slowdown that we saw in the generation sector did affect the transmission sector for the last few quarters but we believe that correction is over and we are seeing signs of order book improving. So, on the power transmission side also we have high hopes of the trend reversing and we are seeing signs of that. Therefore, the Q1 drop that you saw was only on account of power transmission business where we saw a temporary drop.
Q: What will this quarter look like in terms of quantum of revenue based on the amount of the order book that you are executing?
A: We do not give quarterly guidance but quarter on quarter the revenues as well as bottomline should be improving as we move forward.
Q: How are these government projects that you bid for currently being serviced, for example, have you already started servicing them, have you already started execution of these projects. Can you just throw more light on that?
A: The first order that we got, National Optical Fibre Network is for supply. The supplies are currently going on. The next order that we got for spectrum, the supply will start, the supply installing will start from the Q3 of this year that is from October onwards. Therefore, they are pretty much active and under supplies.
Q: Your current order book stands at Rs 4400 crore, if I am not mistaken?
A: Yes that is correct.
Anda sedang membaca artikel tentang
Digital India Scheme can culminate into good biz: Sterlite
Dengan url
http://kebugaranhidup.blogspot.com/2014/08/digital-india-scheme-can-culminate-into.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Digital India Scheme can culminate into good biz: Sterlite
namun jangan lupa untuk meletakkan link
Digital India Scheme can culminate into good biz: Sterlite
sebagai sumbernya
0 komentar:
Posting Komentar