NIFTY 50

Higher services revenue will boost margins, says Nelco

Updated : May 01, 2019 11:08 AM IST

Satellite communication company Nelco expects margins to improve due to higher services revenue, said PJ Nath, managing director and CEO. “Our endeavour is to grow services revenue and higher margin services business contributes 72 percent to revenue,” he further added.

Nath said that on a quarter we have grown by 32 percent over the same quarter last year.

“For the last financial year the sales revenue has grown by 28 percent over the previous year. So we have a very good growth in terms of sales and that has happened because of better business and our profits have gone up by 36 percent, profit before tax, over the last year,” he added.

Talking about business, he said, “We are in the satellite communication business and for this business we need to acquire more customers and then we keep giving them annuity services. Once we have more number of customers added, the revenue keeps on growing up.”

He further said that we have not realized full-service revenue from terminals installed last year.
primo org
Have you signed up for Primo, our daily newsletter?
It has all the stories and data on the market, business, economy and tech that you need to know.
cnbc two logos
To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more
Live TV