The Hindu Business Line : Gemini Comm Q4 net down; revenues up

Chennai, May 20 Gemini Communication Ltd has reported a drop in consolidated net profit despite higher revenues during the fourth quarter ended March 31, 2008. A 57-per cent increase in the cost of materials and project expenses have contributed to the drop.

The consolidated net profit was Rs 3.83 crore against Rs 7.66 crore for the corresponding quarter in the previous year. Revenues increased by 47 per cent to Rs 67.38 crore (Rs 35.61 crore).

The cost of raw materials and project expenses increased to Rs 58.01 crore in the consolidated fourth quarter as against Rs 36.92 crore a year ago.

Standalone profit

On a stand-alone basis, the Chennai-based company reported a net profit of Rs 6.76 crore for the fourth quarter compared with Rs 7.66 crore a year ago. Revenues were Rs 61.09 crore (Rs 35.61 crore). Besides providing communications and networking solutions, Gemini also manufactures radio frequency identification devices.

For the entire fiscal, the company recorded a 34 per cent increase in consolidated net profit to Rs 27.47 crore (Rs 18.08 crore) on higher revenues of Rs 236 crore (Rs 161 crore). Gemini has orders on hand of around Rs 250 crore, says a press release.

Acquisitions

The company is likely to spend around $10 million (about Rs 41 crore) to acquire companies in Europe or South East Asia in the RFID (radio frequency identification) space.

The company also plans to acquire a domestic company in the security storage segment. “We hope to complete the acquisitions in the next couple of months. The overseas acquisitions would help the company to increase local presence in RFID and WiMax areas," Mr Vijay Kumar, Chairman and Managing Director, said.

In July last, the company raised $15 million through foreign currency convertible bonds and a part of this amount was meant for acquisitions or on overseas subsidiaries, he said.

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