BUSINESS

ECIL profit zooms

HYDERABAD APRIL 9. Continuing its successful growth over the last few years, Electronics Corporation of India (ECIL) has reported a 48 per cent growth in turnover at Rs. 1,005 crores and 90 per cent growth in profit before tax to Rs. 150 crores for the year ended March 2003 as compared to the previous year.

Announcing the details at a press conference here on Wednesday, V. H. Ron, Chairman and Managing Director, who is credited with the successful turnaround, said ECIL had set itself a higher turnover target of Rs. 1,250 crores, profit before tax of Rs. 175 crores and exports of Rs. 50 crores (Rs. 5 crores) for March 2004.

The worst year for ECIL was 1998-99, when it had a turnover of Rs. 251 crores, a loss of Rs. 60 crores, and a net worth of just Rs. 7 crores, and was referred to the Board for Industrial and Financial Reconstruction (BIFR). But by 2000-01 it turned around with a turnover of Rs. 579 crores and PBT of Rs. 12 crores.

Mr. Ron observed that in these troubled times, ECIL had convincingly demonstrated its capabilities to combat technology denials from advanced countries and lived up to the founding principles, to achieve self-reliance in electronics. Its net worth also has gone up to Rs. 250 crores, and is expected to go up further to Rs. 325 crores next year.

He said 45 per cent of turnover came from the defence sector, 32 per cent from civilian, 15 per cent from nuclear and 8 per cent from telecom.

Attributing the impressive performance to innovative management initiatives, he disclosed that the corporation had submitted a plan to the Government for downsizing its staff strength by 1,000. The proposal, pending with the Government, was to make a monthly payment instead of a lumpsum as in most VRS cases.

Future programmes include focus on niche systems of defence, integrated security systems, smart card based solutions, export of electronic voting machines, and control, automation, instrumentation and security systems for nuclear power projects, he said.