Dax Networks keeps moderate turnover target this fiscal

Chennai-based Dax Networks Limited, a networking solutions and technology provider, expects its turnover to cross Rs 70 crore for the current financial year. The company is also planning to go in for an initial public offer (IPO) in 2006.

Speaking to Business Standard, C Sujit Singh, country manager of Dax Networks Limited, said: "The company is looking at consolidating its core presence through multiple segments this year and that is why we have set a moderate growth plan."

The company for the last financial year recorded a turnover of Rs 62 crore and for the first three quarters of the current fiscal has seen a 16 per cent growth in its revenue.

"Last year, around 60 per cent of the revenue came from distribution and the remaining 40 per cent from projects but this year we expect it to change to 60 per cent from core networking projects and 40 per cent from distribution," he said.

"The company is also looking at being a part of the BSNL IP backbone programme, which is expected to be implemented in 2006," Singh added.

According to him, the company expects a major boost in terms of the revenues to come in 2006-07 financial year when the company expects the turnover to cross Rs 100 crore. According to him the e-governance and telecom sectors are expected to be the major drivers.

Speaking about the company's IPO plan, Singh said, "The original plan was to go in for an IPO in 2002 which was the year when we broke even. But then, as per the statutory norms, we are required to have three good years on the balance sheet and we are currently in the second year. We will, therefore, have to wait for one more year before we can go in for the IPO."

Though he did not elaborate on the size of the IPO, he said the proceeds would be utilised to meet the expansion requirements into the Asia Pacific region and also look at having an own manufacturing plant in one of the Southeast Asian countries where its sources its products.

The company is also looking at reorienting its partnerships. According to Singh, the company is looking at 20 alliances with national level integrators by the end of the financial year, out of which 12 have already been signed.

Dax Networks is also looking at renewing its distribution plans.

"We are looking at taking our partners along with us as we move up the value chain. The system is likely to be in place by the start of the next financial year," he said.

The company, which currently has around 240 products, plans to roll out new products in different categories. "We plan to roll out Layer 2 to Layer 7 switching range and also a router that would cater to 300 kbps bandwidth speeds," he said.