Info-tech

Bartronics to diversify into banking solutions and citizen services in Q3

K V Kurmanath Hyderabad | Updated on March 12, 2018 Published on August 12, 2011

Bartronics, a digital identity technology and citizen services solutions company, will formalise two divisions, banking solutions and citizen services, as separate companies in the third quarter. These will be called Bartronics Banking Solutions and Bartronics Citizen Services.

“We have received the nod from shareholders and from Registrar of Companies. We have appointed separate Chief Executive Officers for these companies. We expect them to report financials from fourth quarter,” Mr Sudhir Rao, Managing Director of Bartonics, told Business Line.

The company has roped in Deloitte for completing reorganisation process. As part of the revamp, it had consolidated all its foreign arms into one single entity based out of Singapore.

“The idea is to make our activities transparent. Some institutional investors have felt that our diversification into citizen services was not related to the core business. While others thought there is some good scope to invest in citizen services. By carving them into separate companies, investors would know where they were investing,” he said.

Asked what kind of dilution the company would allow into these new companies, he said it was too early to comment.

Net up 37%

For the first quarter ended June 30, 2011, the company posted a net profit of Rs 31 crore as against Rs 22.50 crore in the comparable quarter last year, showing a growth of 37 per cent. The profit, however, saw a decline of 33 per cent when compared to Rs 46 crore in the preceding quarter.

During the quarter, it registered revenue of Rs 262 crore (Rs 163 crore), showing a growth of 61 per cent. But when compared to the preceding quarter, revenue dipped by 10 per cent from Rs 292 crore.

Earnings per share (EPS) stood at Rs 9, up 37 per cent of first quarter last year but down by 33 per cent from Rs 13.54 in the preceding quarter.

Outlook

“We are looking at a growth of Rs 10-15 per cent in revenues and 10-12 per cent net profit. EBIDTA (earnings before interest, depreciation, taxes and amortisation) would be in the range of 20-22 per cent,” Mr Sudhir Rao, said.

The company, which added 300 employees in the first quarter to take the total to 1,300, was looking to add 10-15 per cent (of the staff strength) in 2011-12.

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Published on August 12, 2011
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