homeearnings NewsNelco forecasts stronger second half, expects to offer domestic in flight connectivity in 1 1.5 years
Nelco forecasts stronger second half, expects to offer domestic in-flight connectivity in 1-1.5 years
In a conversation with CNBC-TV18, PJ Nath, the Managing Director and CEO of Nelco, expressed his optimism about the company's performance in the latter half of the year. He foresees a substantial upturn in growth during the second half (H2) compared to the first half (H1).
PJ Nath, Managing Director and CEO of Nelco sees a substantial upturn in growth during the second half of the current financial year.
"As we move into the second half of the year, we expect to witness much stronger growth compared to the first half," he told CNBC-TV18 in a post-earnings interview.
Tata Group-owned Nelco on October 16 reported a 26.7% year-on-year (YoY) jump in net profit to ₹5.7 crore for the second quarter that ended September 30, 2023.
Nath highlighted that revenues have remained relatively constant over the past year due to some project delays.
He reiterated the significant role of inflight and maritime communication as a revenue driver for Nelco, contributing 25-27% to the company's overall revenue. The company expects to launch domestic in-flight communication services within the next 1 to 1.5 years.
In recent years, the demand for inflight communication has surged, with passengers increasingly expecting to be connected during their flights. As a result, airlines have started investing in technology that enables this connectivity, such as Wi-Fi and mobile data.
Our margins typically fall in the range of 18 to 21%, and we don't anticipate any significant deviation. We project a margin of around 19-20% for the second half of the year, he said.
(Edited by : Shweta Mungre)
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