With Avaya Australia entering profit zone, the consolidated operating margin is seen increasing from 11% last quarter.
MUMBAI: Enterprise communication solutions provider Avaya GlobalConnect is looking at achieving breakeven in its Australian operations this fiscal, even as it readies to launch next generation intelligent communication solutions for enterprise customers.
“Australian economy is growing at 3-4% per annum. Interest rate and unemployment rates are stable. Although from a small base, we hope to grow fast. We are looking at revenues of Rs 60 crore from Australia this year and achieving breakeven.
We are now ready for geographical expansion and a deeper presence in the applications space and professional services area,” president Anil Nair said.
According to the company’s annual report, GlobalConnect Australia had revenues of Rs 34 crore and a loss of Rs 3 crore in the year to March 31, 2006.
For the quarter ended June 30, 2007 Australia accounted for Rs 13 crore out of the group’s Rs 153 crore consolidated topline.
With Avaya Australia entering profit zone, the consolidated operating margin is seen increasing from 11% last quarter.
Unlike in India where it gets a bulk of its revenues from contact centre solutions, in Australia, the company’s biggest business is internet protocol (IP) telephony. Hence, it plans to focus on replicating its contact centre success in Australia.
Also, proportion of revenues from services, which carry better margins than products, is higher in Australia than India. In India, services account for just a fifth of revenues, with the balance coming from products.
“We are bullish on the company and feel that margins have bottomed out. The business environment is robust and the communication market is likely to grow at 25% annually,” Sumit Modi, analyst with Emkay Shares said.
The products they sell now would bring in services revenue in the form of AMC (annual maintenance contract) later and hence the services portion will grow, which would aid margins. Also, a strong rupee would further help margins since they import a lot of their products,” he added.
Modi has a price target of Rs 358 on the stock, which had touched an all-time high of Rs 414 on June 5, 2007.
Nair said, with the opening of an office in Perth, Western Australia, the company would be able to service new geographies and expand the client base from about 50 now.
In the domestic market, in order to move up the value chain, Avaya GlobalConnect is introducing intelligent communication solutions, which has been developed by its parent Avaya Inc.
Nair said communication enabled business process takes out human latency from decision making and speeds up business
The communication solutions marry IP telephony with various levels of customer relationship management solutions and are integrated with the customer’s business processes.
For instance, in a retail chain, when supplies run low, the system would initiate a call/message/alert with the concerned team members on devices of their choice (landline, mobile, computers, etc) without waiting for a human trigger.
Nair claimed that this would be a first-of-its-kind solution in the country and that several companies had shown interest.
It is first implementing the solution for in-house use for sales, marketing and projects people and would offer it in the Australian market, too.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}