The slowdown in telecom industry has impacted Megasoft, the Hyderabad-based telecom products company. It lost some large contracts, “with replacements hard to come by”.
Its revenues fell to Rs 29 crore in the fourth quarter ended December 31, 2012, as against Rs 36 crore in the same quarter last year. The net profit too declined to Rs 29 lakh from Rs 2.74 crore during the period. The standalone entity posted a loss of Rs 1.67 crore as against a profit of Rs 3.69 crore.
“The financial year 2012 was a tough one on the operations of the company. We are able to stay cash positive. We are able to register a growth of 8 per cent in revenues quarter on quarter. We have closed a large contract in the Gulf region,” G.V. Kumar, Managing Director and Chief Executive Officer of Megasoft, told
The loss of one major customer had dragged the company’s revenue to Rs 115 crore in 2012 from Rs 150 crore in the previous year, a dip of 23 per cent. As a consequence, the full-year net profit slipped to Rs 1.17 crore from Rs 17.50 crore.
He said the capital expenditure witnessed a slowdown, resulting in slower uptake for its new products and applications.
He, however, said the company would see growth this year as it rolled out its expansion in Africa, the Gulf and Latin America.