Videocon Industries net profit rises 4 percent in Q3, eyes business expansion

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The $2.5 billion conglomerate, which also has interests in retail, logistics, semiconductor, and oil and gas businesses, said its net profit in the June quarter stood at Rs.255.07 crore, up from Rs.245.11 crore posted in the year-ago period (year-on-year or YoY rise of 4.06 percent).

During the same period, total revenues rose from Rs.2265.35 crore to Rs.2620.43 crore (YoY rise of 15.67 percent).

Despite high interest rates, Videocon expressed satisfaction that it has been able to maintain its margins.

However, due to high input costs, prices of some of the products will increase marginally, Venugopal Dhoot, chairman, Videocon Industries, said.

"Some of the items we will hold, some of the items will go up not only because of interest rates but input prices have also gone up," he said.

The price increases will not affect demand, he added.

Looking ahead, the company said it would launch its direct-to-home (DTH) television services in mid-September. "DTH is a synergic business for any TV manufacturer. We have a 30 percent share in the television market, and an product line in the DTH service is very profitable for us," Dhoot said.

With the launch, the company will join Dish TV India Ltd and Tata Sky in offering the service that allows users receive television signals direct via satellite. Bharti Airtel Ltd and Reliance Communications Ltd are also planning an entry.

Videocon also plans to set up a facility to manufacture thin-film transistor liquid crystal display (TFT-LCD) in Maharashtra at an estimated project cost of Rs.8000 crore in a tie-up with IBM.

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