The stock of Bartronics India has fallen over 61 percent in the last one year, on investors fears about heavy FCCB(foreign currency convertible bonds) repayment and also on concerns of the promoters pledging a chunk of their holdings. This apart its order-book position too has remained stagnant.

While FY10 was reasonably strong for the company, this fiscal has been challenging.

In the nine months of FY11, the company has seen revenues increase by just 6 percent, while net profits fell by 7.1 percent over the same period in the previous fiscal. But the diluted earnings per share is down by over 18 percent.

The promoter holding in the company has fallen steadily over the last three quarters and the latest shareholding disclosure reveals that as much as 75.5 percent of the promoter holdings have been pledged. Also, with heavy FCCB redemption due in 2013, there are concerns surrounding repayment or in the case of conversion, of significant dilution.

But from a business perspective, though the order book has not expanded, India’s contribution is steadily increasing as the company makes inroads in key growth areas of e-governance and financial inclusion.

With the “Aapke Dwar” project of the Municipal Corporation of Delhi(worth Rs 5000 crore over nine years), set to contribute to revenues significantly from the next fiscal, Bartronics should potentially witness improved topline visibility and easing of its cash flow situation.

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