The Hindu Business Line : Moser Baer Q3 PAT rises 188 pc

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New Delhi Jan. 25 Leading optical disc manufacturer Moser Baer has reported a 188.4 per cent increase in profit-after-tax (PAT) at Rs 37.62 crore for the third quarter ended December 31, 2006 against Rs 13.04 crore in the corresponding quarter last year.

The total income rose by 17.97 per cent at Rs 515.02 crore (Rs 436.54 crore).

"FY07 is clearly a year of recovery. We are set to revert to sustainable returns from the optical business by the fourth quarter of FY07," said Mr Yogesh Mathur, Group CFO, Moser Baer India Ltd.

The company has been undertaking several new initiatives to grow its optical business. Moser Baer had recently announced plans to invest in content replication and distribution.

"We would be acquiring libraries in India, and aim to have 7,000 titles by March. The process is on a roll out," said Mr Mathur, adding that in southern India, the company had already started acquiring licensing rights for the content. Moser Baer is targeting 40 per cent market share in content in regional languages.

In contrast to the prevailing market price of the CDs and DVDs at around Rs 200-500, Moser Baer has announced to sell these DVDs at Rs 30 and VCDs at Rs 28.

Explaining the feasibility of these price points, he said that the company would be able to support the aggressive pricing by leveraging on its expertise in manufacturing this technology, achieving high sales volume and reducing media costs.

Moser Baer is planning to aggregate all the titles and create a national brand for itself through this bank and then decide on an ownership and licensing model for the same.

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