IT industry banking on home segment for better AMJ

After jostled by the poor business performance in JFM quarter, the local IT industry (trading market) is gearing up to record a positive fiscal 2001-02 this time. Usually, the AMJ quarter is considered to be the lean period in IT business where only 15-20 percent of the annual revenue target is to be met. The local IT players are confident of closing this quarter achieving the target, unlike the JFM quarter of the last fiscal where most of the traders fell below expectation line. Everyone is banking on the home segment to take them to their target.

Said Moses Lawrence, Director, Computer Factory India Ltd, "In the current quarter, April was a little bit sluggish but the market is showing all signs of recovery this month. Sales are really picking up now and hopefully we should reach our targets set for the AMJ period. Home segment is steady and regular business is happening from this section, while we face a huge competition in the corporate sector where margins have narrowed down and payments are pending. On the whole, this quarter, PCs are doing well mainly because of the home segment and peripherals such as printer, scanner, webcam are also being bundled with the product (PC), besides UPS and a few software (including gaming software)." Computer Factory has set a turnover of Rs 25 crore as target for the current fiscal and in AMJ, it expects to register Rs 5 crore of revenue.

According to R Aravindan, Director of Compact Systems, which manufactures and markets Compact brand of power conditioning equipment in the market, "For us, April was slightly better and in May, till now, there was no significant sales. But AMJ will be a good business period for Compact as the country faces its ever worst power problems during the season and all the PC users will realize the need of UPS systems." The company is sure of reaching its targets for this quarter as well as this fiscal, and claims that the home segment contributes 50 percent to its total business. "We are planning to register a turnover of Rs 14-15 crore at all India level in the current fiscal and Rs 2.15 crore in this quarter," he said.

"We are working towards achieving a revenue of Rs 4 crore in AMJ but the market is very dull till date, especially April was a bad month for us. The company is expecting some significant business from home segment and SMEs this time," said Vijay Kumar, Partner, Magnum Computers, which deals mainly with peripherals of leading MNC brands such as HP, Samsung, Seagate, Intel and Logitech.

Says P Naresh Kanted, Executive In-Charge, Sagar Computers (a trader in Ritchie Street), "There is not much of business happening in the market since starting of this fiscal. Generally, we don't set any revenue target for the AMJ quarter and whatever business happens it's well and good, that's all. But, usually, the local market will be busy settling accounts of the previous year now and for us active business starts from June."

B Krishna Kumar, Proprietor, Sri Lakshmi System Products, one of the leading trader in the city, says, "Day-by-day the competition is increasing in the market and reaching targets, whether in AMJ or JAS, is going to be a tough task for all the players. No company dares to set phenomenal growth rate in the present market situation and only moderate growth is expected in business." He lauds the home segment which gives regular business for the IT market in any season and says, the company is confident of reaching its targets for the current quarter. Sri Lakshmi Systems has registered a turnover of Rs 26 crore last fiscal and is planning to close the current fiscal with a revenue of Rs 28

crore.

According to I Sadiq Batcha, Managing Director, SSS Systems, which has recently opened country's biggest IT showroom in the city, "Home segment is one, which saves almost all the traders by giving considerable business even in this lean period and more than 50 percent of our business comes from home segment."

Thus, the whole market is waiting with bated breath for a prosperous fiscal.