AGC Networks narrows loss to Rs 9.4 crore in July-September

MUMBAI: AGC Networks has broken even at an operating level after six straight quarters of losses, and the Essar Group unit’s new chief executive says once the turnaround is complete he will work on acquisitions and international expansion to ensure growth. The Essar Group acquired AGC Networks from communication equipment maker Avaya in May 2010.

The system integration company reported a standalone profit of Rs 12.8 crore on revenue of Rs 306.2 crore for the year ended March 2011, and since then it has struggled. For the financial year ended March 2014, AGC reported a standalone loss of Rs 145.1 crore on revenue of Rs 305.3 crore. In June, the company brought back Anil Nair to script a turnaround.

For the quarter ended September 30, AGC reported an operating profit of Rs 3 crore, compared with operating losses of Rs 4.6 crore in the previous quarter and Rs 30 crore a year ago. It reported consolidated revenue of Rs 222.3 crore for the quarter. “You might as well do it quickly.

You can take more time but the benefit of doing it right and doing it fast is really good,” Nair told ET on implementing his plans. For Nair, this is the second innings at the company. He was previously managing director at Avaya GlobalConnect, as AGC was earlier known, from 2008-2010, having originally joined the company in 2004.

Nair attributes the start of the turnaround to keeping a focus on reducing costs and increasing its relevance to customers. The company has cut the number of warehouses to two from seven, as it rationalises its supply chain.