Dc Infotech And Communication Ltd (DCI) Q4 FY23 Earnings Concall Transcript

Dc Infotech And Communication Ltd (NSE:DCI) Q4 FY23 Earnings Concall dated May. 10, 2023.

Corporate Participants:

Chetankumar Timbadia — Managing Director

Piyush Shah — Chief Financial Officer

Devendra Sayani — Whole-Time Director

Analysts:

Nikhil Arora — Individual Investor — Analyst

Rajesh Ainor — ITI Limited — Analyst

Harsh Sharma — Individual Investor — Analyst

Neha Jain — Individual Investor — Analyst

John Mathew — Individual Investor — Analyst

Pranayam Jain — Zeel Wealth Securities — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to DC Infotech & Communication Limited Q4 and FY ’23 Earnings Conference Call. [Operator Instructions]

I now hand the conference over to Mr. Chetankumar Timbadia from DC Infotech &Communication Limited. Thank you, and over to you, sir.

Chetankumar Timbadia — Managing Director

Thank you, Michel. Good morning, everyone. I would like to wish you all a very warm welcome to DC Infotech & Communications Limited earnings conference call for the fourth quarter and for the full year ended 31st March 2023. I would like to begin by expressing my gratitude to you all for taking the time to join us today. With me today on the call is Mr. Devendra Sayani, Whole-Time Director; and Mr. Piyush Shah, CFO; and also the ad factors, our Investor Relations team. If this is our median earnings conference call, I would like to share some brief insights and recent developments about our company. Before we get into the business and the financial performance for the year, established in 1998, DC Infotech has been specializing and providing innovative network, unified communication and security products and solutions by utilizing the latest technology available.

Over the years, we have been able to establish as a leading company in sales and support of networking, unified communication, security solution and services. Our core competency are in understanding existing network and its future needs. We excel at designing, deploying and supporting effective functional networks with exhaustive range of PSE appliances and security implementations with all major install Pan-India. As you all are aware, the IT industry has not only been survived, but actually grown in this week of recent pandemic-related disruptions. The crisis accelerated, digital transformation and performed transform the legal norms, toppling numerous firms towards the future. As we continue to navigate in the ever-evolving landscape of the IT sector, I am pleased to report that our company has made significant strides over the past last year.

The paradigm shift makes unified communications and network solutions, increasingly very critical, especially at the enterprise level. As more business activities move online, data breaches and network attacks are more counting the need for a strong digital security, I, cases where the DC Info steps in. We provide full value-added offering to our clients by utilizing our core strength in the digital transformation and end-to-end solutions. In terms of networking, unified communications and security solutions, we are very happy to announce that we have opened a new branch in Surat, Gujarat. This branch offers a full range of products. And to add, we are constantly looking to adding new products and brand to our product portfolio. Some of our latest client addition includes Maruti Suzuki, Gujarat, NuStar and Tata Play.

Moreover, on the brand side, we are tied up with California-based Ari networks. Ari Networks provides an extensive selection of application delivery and security solutions, which we will be providing throughout India. We have received orders for our value-added security product line, Netscout from three new prestige clients, Kotak Mahindra Bank, Tata Finance Services Limited and Bharat Petroleum Corporation Limited. Typically, most of our security orders are for three to four years duration. We have also entered into a distribution agreement with Versa Network Inc. We have won the mandate for India as well as SAP region. We have a history of working with majority of OEMs. Many of them have been our partners for more than a decade. We continuously strive to strengthen our order book and expand our clientele.

Our long-standing partnership strengthen our position has go to partner for Unified Communication on network solutions. Additionally, we have received awards from our partners during the year for our contribution to their business, including D-Link, Samsung. Looking ahead, we are eager to explore fresh possibilities and keep pushing the limits of innovation. I would like to express my gratitude to our clients and shareholders for continued trust and support. With your help, we will continue to lead the way in this information technology industry by helping our customers in their secure digital transformation journey and bring new cutting-edge products to the market.

Now turning to our financial performance. Fourth quarter Q4 FY ’23, we have reported INR96.17 crores of revenues during Q4 of FY ’23, which is a 26.9% year-on-year rise. Growth is driven by strong sales of Samsung Signage, Netgear networks and Security Software and Services. Our EBITDA for the quarter stands at INR378 crores, increasing 76.01% year-on-year. Change mix of the products and brands coupled with decrease in other expenses, EBITDA margin stood at 3.93%, an improvement of 111 bps compared to previous year. Our net profit for the current year is at INR2.15 crores current — sorry, the current quarter is at INR2.15 crores and compared to INR123 crores in the last quarter of FY ’22. Net margin stood at 2.23%, up by 62 basis points. EPS for this quarter is INR1.73 crores.

Now, we move to full year FY ’23. We have reported INR359.63 crores revenues in FY ’23, a 54.7% year-on-year rise, due to a strong demand in products like Samsung signage, Media Networks and software and security services. EBITDA for the full year is INR127 crores, an increase of 73.63% year-on-year. Our net profits during this full year is INR7.08 crores, as profit against INR4.00 crores. in FY ’22. Net profit margin stood at 1.97%. EPS for this period is INR5.90.

That’s all from my side. Now we can take questions.

Questions and Answers:

Operator

Thank you very much, sir. [Operator Instructions] The first question is from the line of Nikhil Arora an Individual Investor. Please proceed, sir.

Nikhil Arora — Individual Investor — Analyst

Hi. Congratulation, sir, on the good set of numbers. So my first question is the NPA expenses during this quarter is stable. So have you taken any steps on the workforce? And my second question is pertained to the balance sheet. The long-term borrowings have decreased, but the short-term borrowings have increased this year as compared to last year. So for what purpose have we taken the new loans? If you can give some guidance?

Chetankumar Timbadia — Managing Director

Okay. Can you just repeat the first question formally.

Nikhil Arora — Individual Investor — Analyst

Yes. The employee expenses during the quarter has been stable. So have we taken any steps in continuing to the workforce there any recent update about the same?

Chetankumar Timbadia — Managing Director

No. As we are trying to get more efficiency in terms of manpower, whatever we had hired in the starting of the year and the mid of year, we are able to get the maximum out of the existing manpower. And as far as the second question, long-term and short-term long term has decreased because mainly of the depreciation ratio of the long-term borrowings. And short-term is for cash for the more business. I think Piyush Shah our CFO can be more in detail about it.

Piyush Shah — Chief Financial Officer

Yes, long term borrowing — yes, yes. Long-term borrowings is a term loan. So once we are repaying the principal amount, it is going to decline. And the short-term borrowing is used for working capital only because the business has expanded. So the capital requirement has gone up.

Nikhil Arora — Individual Investor — Analyst

Okay, sir. Thank you so much for the clarification. That’s all for my side.

Operator

Thank you. The next question is from the line of Rajesh Ainor from ITI Limited. Please go ahead.

Rajesh Ainor — ITI Limited — Analyst

Hello, am I audible?

Operator

Yes, sir, please proceed.

Rajesh Ainor — ITI Limited — Analyst

Yes. Sir, my question is about just more from trying to understand the business around the margin and the overall margin profile that can and potentially, if I understand the product mix, I think almost 70% or 82% is product and 18% is services and our margins are less than 5% operating margin. What kind of — what is the nature of this business because — you know typically these low margins are more for trading, etc, kind of outlet or where there is a really high competition, I mean, you are moving to some very low entry barrier kind of businesses. And let’s say, when we scale up, is there a scope for margins to improve? Are these normalized margins in the business? Or is that because we are at a smaller sense, these are the margins and it can actually improve or significantly different level when we scale up.

Piyush Shah — Chief Financial Officer

Okay. As to answer your question, I would like to just brief you about what we do and where we have come from, that will help you to understand what question you have. We started our journey as a networking products on a distribution company. And over a period of time, we have been doing that. But in last four, five years, we added some products which are solution and services. So what basically networking has still been our core business, networking solutions and products, which is still 70% of? What we have added in the last five years keenly is on the front.

One is a unified communication where we have digital signage plus connectivity mainly for boardroom solutions or outdoor solution there. So that’s one product line where it is — we are seeing a major growth also. And the second and the most primary where the growth is being driven to security solutions. Securities solutions are mainly a high-class enterprise cloud solution, which goes to large enterprises, mainly Nifty 55 of organizations would lead to. In terms of the margins at the [Indecipherable] normal distribution business we have is comparatively a little competitive and as this margin. But going forward, what we are seeing a rise is coming from the security and UC patch as well the margins are nearly in double-digits. And going forward, as our product mix has more of that component and — as of now, we are nearly 75%, 25% — 30 in that.

But — as the product mix improves, we are surely to see much better margins than what we are. And there is a lot of headroom where it can be include in the coming. As a company also, we are also much focused in that direction to enhance our skill sets in terms of market offerings and see what more product or more solutions in. So — as a company, we are focused on solutions rather than products, which we have been traditionally doing. And I’m sure that going forward, this will help us to not only the top line, but the bottom line also will improve in healthy fashion.

Rajesh Ainor — ITI Limited — Analyst

So you mentioned about your nature of orders, which at three to five years typically, so how large is that canvas now open towards where we can actually work and place the order? Do we have any special order book? How is it going? Or how much is that, let’s say, span you can specify that?

Devendra Sayani — Whole-Time Director

Okay. So our network — sorry, security and services product line, normally, a customer would give an order to supply maintenance supported for three or maybe five years period of time. This is a very high-end scale product, where every second vendor cannot be supporting it. So all our orders come with order of three or five years, depending on, how the customer is there. So they’re all security software and solutions, generally, the default period agreement with the customers for three or five. And second portion of the question, order book, yeah order book currently, we have approximately INR10 crore plus, but on the flip side, there are a lot of POCs and Demos, which are in much advanced stage. And we should be seeing a healthy pipeline in this H1 of this year in this space.

Rajesh Ainor — ITI Limited — Analyst

Okay. Thanks a lot sir. That’s it for me.

Devendra Sayani — Whole-Time Director

Okay. Thank you.

Operator

Thank you. We have the next question from the line of Harsh Sharma An Individual Investor. Please go ahead.

Harsh Sharma — Individual Investor — Analyst

Hi sir. Good afternoon.

Devendra Sayani — Whole-Time Director

Good afternoon. Good morning.

Harsh Sharma — Individual Investor — Analyst

So I wanted to ask, sir, what is that capex plan for the company in the coming one two years?

Devendra Sayani — Whole-Time Director

Sorry your voice is…

Operator

Mr. Sharma, we are not able to understand what you’re speaking as there is a lot of background disciplines from your line. Can you please repeat your question?

Harsh Sharma — Individual Investor — Analyst

Yeah. Hi. Am I audible now?

Operator

Yes. You are audible but there is a lot of background disturbance because of which, we are not able to understand what you are talking.

Harsh Sharma — Individual Investor — Analyst

Yes. One second.

Operator

Okay.

Harsh Sharma — Individual Investor — Analyst

Yes. I think this should be better now?

Operator

Yes, sir, please proceed. Thank you.

Harsh Sharma — Individual Investor — Analyst

So, I wanted to ask you is what is our capex plan for the company in the next one, two years?

Devendra Sayani — Whole-Time Director

Piyush, would you like to answer that?

Piyush Shah — Chief Financial Officer

Yeah. Actually, we are looking for a short-term capital I mean short-term working capital — but in fixed asset side, we are not expanding much.

Harsh Sharma — Individual Investor — Analyst

Okay.

Piyush Shah — Chief Financial Officer

So we are only means for the business growth only, we are looking for the working capital. So…

Harsh Sharma — Individual Investor — Analyst

Thanks, that enough. Sir so like would we consider as our top three competitors in India currently?

Devendra Sayani — Whole-Time Director

That one minute. Chetan Bhai will answer that one.

Chetankumar Timbadia — Managing Director

Okay. Yeah. See, currently, what we are doing as a product mix or a solution mix, there’s no, I would call it, apple-to-apple competitors because the mix what we have is not very reflected by many other. Yeah. But you can say, we are basically into mainly three domains. One is, the Networking Domain. Second is, as unified communication timing; and third is the securities software to be. So in the — you would like to understand how the listed space or non-listed examples also.

Harsh Sharma — Individual Investor — Analyst

Sir. So basically, like have you know that it’s in the networking space is a competitive market. So how are we different on a competitor?

Chetankumar Timbadia — Managing Director

How we differentiate from our competitors? See, we have been — network solution. So we have been there in the space from mainly now two decades. So the expertise and the knowledge, not in terms of only the management that the team we have has been so deep, what we are able to understand and turn off as a solution that skill set and the knowledge will not be available with maybe a new entrant industry. So the time and the vantage we have spent has given us a lot of edge, while we continuously train up to for the future technologies also. So competitively, there as well.

Second side, one is the similar understand. And second side, we are spread across the nation. Where people there, so the market fleet is where we are connected to the ground, which can help us to see what the changes or what the trends are, and we are able to deliver to the very next and corner of India. So this knowledge plus reach is that competitive edge over the rest of the participants in this area.

Harsh Sharma — Individual Investor — Analyst

Good. Fine, sir. One more question, sir. Basically, what is our current market size of the industry that we are present in, like we can say domestically and globally?

Chetankumar Timbadia — Managing Director

Okay. So there are no exact numbers for the global patch, but I have what I have gathered from the domestically, networking market is around INR20,000 crore market size for India as such, we talk about nearly networking as a space, because there are a lot of server solutions available. So that’s the one thing. Unified communication space should be somewhere around INR8,000 crores to INR10,000 crores. And the security market, which we do we have recently started a couple of years back and — that is a very emerging market.

It currently is in a space of INR4,000 crores to INR5,000 crores parties growing at a compounded pace of maybe 30%, 40% a year. So in the times to come, this is going to become a very big portion of that. As the large enterprises, the startups, million-dollar club organizations grow space will also grow at average faster please. So if you put all of the together as of to what I see, it should be between INR40,000 crores to INR50,000 crores as of now currently.

Harsh Sharma — Individual Investor — Analyst

Fair enough. And if I may, one last question, please. Sir, which are like top three to five brands in terms of revenue and like what is the revenue share split for [Indecipherable]

Chetankumar Timbadia — Managing Director

Okay. We — brands which are done major in Dlink in networking space, Netgear in the networking space, Samsung in unified communications space, and for the security solution, we have Netscout, Arbor, which is the major chunk of our revenue being contributes approximately 22%. Netgear completely reached approximately 24%. Samsung contributes around 26%, and NETSCOUT Arbor contributes around 15%.

Harsh Sharma — Individual Investor — Analyst

Understood. Thank you so much sir.

Operator

Thank you. The next question is from the line of Neha Jain, an Individual Investor. Please go ahead. Ms. Neha Jain, [Operator Instructions]. Kindly proceed with your question.

Neha Jain — Individual Investor — Analyst

Good morning, congratulations on good set numbers. So we just heard about the different categories that we have in terms of networking, unified communications and enterprise security, so just wanted to understand what is the revenue breakup of these segments for FY 2023?

Chetankumar Timbadia — Managing Director

Okay. Revenue breakup for — the networking in terms of rupee or in terms of percentage you feel like to know?

Neha Jain — Individual Investor — Analyst

Yes, in terms of rupee.

Chetankumar Timbadia — Managing Director

Okay. And networking patch treat comes approximately from INR168 crores to INR170 crores. That’s the reach. Unified Communication is approximately INR100 crores and the security and software patches approximately INR70 crores.

Neha Jain — Individual Investor — Analyst

And what will be the EBITDA margins for these three segments?

Chetankumar Timbadia — Managing Director

EBITDA margins will be — for the security patch will be around 12% to 13%. And for the unified communication will be around 6%. And for the networking patch will be around 4% to 5%.

Neha Jain — Individual Investor — Analyst

Okay, sir. And having done any major capex during this year this financial?

Chetankumar Timbadia — Managing Director

Capex only for working capital only we are looking at, not for fixed set.

Neha Jain — Individual Investor — Analyst

Okay. So sir, what will be our cost for that short-term net working capital that we are incurring?

Chetankumar Timbadia — Managing Director

Cost in terms of interest costs or–

Neha Jain — Individual Investor — Analyst

Yes, on percentage.

Chetankumar Timbadia — Managing Director

Interest is repo plus 3.12%, repo plus 5%.

Neha Jain — Individual Investor — Analyst

That comes up to how much percentage?

Chetankumar Timbadia — Managing Director

Repo right now is around 11% to — 11% or like that, it is there. And one channel finance is there. So, that is around 12%. So, that is not linked to revenue.

Neha Jain — Individual Investor — Analyst

Okay. Okay. And sir, like are we — what is the ROP for individual segments as revised, Okay?

Chetankumar Timbadia — Managing Director

To me there are some unallocated assets as well. So, because of that, then we won’t be able to bifurcate exiting in terms of ROCE.

Neha Jain — Individual Investor — Analyst

So, we only calculate ROCE on a total company-wise not segment-wise?

Chetankumar Timbadia — Managing Director

No, no. Correct — because capital employed changes during the year that is why.

Neha Jain — Individual Investor — Analyst

Okay. And sir, like terms of breakup contribution in terms of software and hardware for FY 2023?

Chetankumar Timbadia — Managing Director

Product will be around 80% and software will be sub-20%, 18%, 19%, that sub 80%, 81%.

Neha Jain — Individual Investor — Analyst

Okay, sir. Just have a few more questions related to finance. So the operating cost has decreased by approximately more than 50% on a Y-o-Y basis during the quarter. So have you taken any major steps to improve our efficiencies? I would just like to understand on that part?

Chetankumar Timbadia — Managing Director

Earlier in the year because of the dollar fluctuation and the dollar going from 75 to 80 plus 11%, we seen an input this company we had incurred some ForEx losses that was the major reason for our even. In the H2, we have taken steps to quiet and we have put in an engine policy increase and we are able to spend any further loss and maybe recover a little bit of loss in which we have got. That’s why that cost has gone down.

Neha Jain — Individual Investor — Analyst

Okay. And even for the entire your other income has increased by more than 19%. So what are the components of the other income?

Chetankumar Timbadia — Managing Director

That is because of interest.

Neha Jain — Individual Investor — Analyst

Okay. Okay. Fair. Thank you so much, sir. And good luck for the future.

Operator

Thank you. [Operator Instructions] The next question is from the line of John Mathew, an Individual Investor. Please go ahead.

John Mathew — Individual Investor — Analyst

Hi, there. Good morning. What is our working capital cycle I want to understand that?

Chetankumar Timbadia — Managing Director

In the terms of number of days?

John Mathew — Individual Investor — Analyst

Yes.

Chetankumar Timbadia — Managing Director

Currently, we have working capital cycle for us will be around 70 to 73 days as of now for —

John Mathew — Individual Investor — Analyst

And in terms of cash flow position of the company, are you taking any legs if any taken to improve the cash flow position in the company.

Chetankumar Timbadia — Managing Director

Yeah, we are trying to do that. See two things are — which we are working on major for cash flow. We are trying to make more efficiency in terms of collection of data, what you would call it, seeing that the cycle becomes smaller. And two, on the stocking side, we are trying to see that what minimum or what correction we can have to bring the stock level below. So I think both of this multiplied together and the desire as of now, comparing the cash flow to more levels.

John Mathew — Individual Investor — Analyst

Okay. Okay. And talking about your business segments could you — I mean, would you be able to provide the ROCE for individual segments?

Chetankumar Timbadia — Managing Director

I think Piyush just shared. We don’t have — we have a lot of unallocated expenses across the sector. So we are not able to — yeah, Piyush go ahead, please.

Piyush Shah — Chief Financial Officer

Because the capital employed is interdependent as well. So that is why it is not possible for us — for individual.

John Mathew — Individual Investor — Analyst

Okay. Last question from my end. On NetScout brand, as which we or it from Kota, Tata and BPCL. So would you be able to provide breakup, like what is the order book breakup for Netscout brand?

Chetankumar Timbadia — Managing Director

What we have executed or what the order book we have in hand Netscout?

John Mathew — Individual Investor — Analyst

What order would be — both numbers, if you could provide then that would be much more helpful.

Chetankumar Timbadia — Managing Director

For the Netscout, what we did in the last year, that’s what you are trying to ask?

John Mathew — Individual Investor — Analyst

Yes. And if there are any future orders in the pipeline as well?

Chetankumar Timbadia — Managing Director

Okay. So we did approximately INR50 crore plus in the Netscout Arbor space in the last year out of the total. And for the order book in hand, we have approximately as absolute — yeah, we have more than INR10 crores plus of order in and which are pending for execution. And there is a decent final size, which we are looking at to place. It’s — basically this product line the security solution have now same cycle so what we work to do now can yield orders maybe three months or six months down the line and is a long previously which enterprise will do and lot of duty business and security checks have done before an order is place. So — but there are a lot of thesis which we are working on and that order should come through in this H1. So we are looking at something of maybe INR30 crores to INR40 crores in this set of other enterprise batch speculative batch.

John Mathew — Individual Investor — Analyst

Okay. Thank you. Thank you for providing the enterprise. That is all for me.

Operator

Thank you. [Operator Instructions] We have the next question from the line of Pranayam Jain from Zeel Wealth Securities. Please go ahead.

Pranayam Jain — Zeel Wealth Securities — Analyst

Thank you and congratulations team for a wonderful set of results. It’s great to see that for a young company, this kind of accelerated growth is there and the way ahead is quite encouraging. So just wanted to understand a couple of things, say, over the next three years, what are we looking to scale to in terms of revenue and EBITDA margins based on the drivers and the new areas that we are working on.

Chetankumar Timbadia — Managing Director

Okay. Thank you for the kind words that has been encouraging. Yes, we’ve been really pushing hard. And as you told as a young company and with the product mix, we are actually, yes — one, we are sure that we will try to beat whatever the market growth is there. As far as — if you would like to specify in terms of numbers, we are aspiring to be — or we would like to be a INR1,000 core company soon, maybe next couple of years. That’s the vision we are trying to carry us as too.

Pranayam Jain — Zeel Wealth Securities — Analyst

So when you say INR1,000 crores, you mean by FY ’26 end.

Chetankumar Timbadia — Managing Director

Yes, that was the by wish.

Pranayam Jain — Zeel Wealth Securities — Analyst

Okay. And the EBITDA margins, which we have exited at 3.5%, what could that look like with this kind of growth?

Chetankumar Timbadia — Managing Director

As I think we are more focused on the unified communication and the security patch, where the EBITDA or the gross margins are much higher than traditional networking, what we do. So as the product mix increases or skews towards that where we see a much better growth in the overall patch — from the current issues as the ratios change the EBITDA margin is also set to go up much faster.

Pranayam Jain — Zeel Wealth Securities — Analyst

So for a simplistic understanding, say, by FY ’26 end, could we expect double-digit EBITDA margins on a consolidated basis?

Chetankumar Timbadia — Managing Director

That would be my rush. But yes, we are the high is very close to that would be, I think, achievable, but that is all our [Indecipherable]

Pranayam Jain — Zeel Wealth Securities — Analyst

Okay. And lastly, what are the other large logo additions that we are in talks with, which could help us in this kind of growth and the new technologies, whether it is — for example, Jio is coming out with air WiFi and 5G, we are going to see a stronger rollout next year onwards. So on a realistic basis, over the next one year, what are we really excited about based on our discussions with existing clients to expand pocket share or the new logo additions that we are doing and whatever technologies that we have tested, they are now going to be taken up by clients.

Chetankumar Timbadia — Managing Director

So very interesting question. And see, as far as what you mentioned about 5G from where we see a management and understanding still that 5G is really a recent stage. — but maybe a year or two down the line like 5G comes properly rolled out in every state. We’ll see a lot of ecosystem building around there, a lot of products and a lot of solutions being built around that, and that will bring a lot of new opportunities. So once — until that thing is there, we can keep on talking, I have a lot of things, which — but to keep that brief. Anyway lot of ecosystem built around 5G as a solution, and that we will be able to do that.

And the other side of it, which I’m more excited about it was that 5G or the current thing is well. So maybe it’s a little hazy, what will come in, but security will come in, in a big way. more and more data adoption, more and more connectivity, more and more remote devices connecting and every connectivity brings them security threat more people moving to cloud, more people who — mobile everything.

And that’s the patch which we would like to encash it more and focus more in terms of the times to come. Products will come in. But there it will be not much of a value add in terms of knowledge, which we will be able to do. Our reach will help us to sell and distribute that across the nation. But the knowledge and the skill set, what we have, which we would like to encash it or invest into the security patch of it.

Pranayam Jain — Zeel Wealth Securities — Analyst

Okay.

Chetankumar Timbadia — Managing Director

So to ensure what you are asking.

Pranayam Jain — Zeel Wealth Securities — Analyst

Yes. I understood that things are looking a little hazy on the medium-term front when it comes to numbers. And we are focusing on our current strengths near term. So if I speak near term for visibility, let’s say, this financial year ’24 — should we expect you to at least touch INR500 crores on the top line front. Is that kind of growth achievable?

Chetankumar Timbadia — Managing Director

I think you are reading my heart.

Pranayam Jain — Zeel Wealth Securities — Analyst

Okay.

Chetankumar Timbadia — Managing Director

That’s a wish. But for the first sentence, which you told see, nobody anticipated a COVID and the turn of events. So what COVID brought in a lot of big opportunity for us in terms of people started working remotely. And that brought in a security requirement and we grew on that, right? Now again, as you say, a feature in case with all the global assets going on interest rate, India is still doing good, but there are few years of slowdown into the enterprise patch. If that comes in, we are serving the industry. So if industry slows down, I can’t do much about it.

Pranayam Jain — Zeel Wealth Securities — Analyst

I understand. And our focus is going to be largely India or we are expanding our business in select markets. So if you could give us a picture of what our vision is outside India and how we are going about it?

Chetankumar Timbadia — Managing Director

So as of now, we are focused mainly on India covering India is also a very big market. But yes, there are some overseas plan and discussions which are going on maybe hopefully, maybe in a couple of quarters, we will be able to come back to all of you with the exact plans. Yes, that is on the radar, and there are talks and discussions with product and solution companies about their overseas business. Because the trend and skill set, what we can offer in terms of designing, installing and implementation. And obviously, India being so cost effective and still set capital. A lot of brands are pushing us to take this thing to other markets. And we are seriously considering that. But at the right time, we’ll move to the other markets. That is on the radar.

Pranayam Jain — Zeel Wealth Securities — Analyst

Okay. And just last question before I get in the queue again. There are the wonderful value-added partnerships that we have with dealing, Netgear, Samsung, NextScout and so on and so forth. So what are the concrete business additions that we are going to have with them in the next 12 to 18 months where discussions have already happened, technology is already tested, there is demand already for this thing. So what are the new large lower additions like these names that we are looking forward to in the next 12 months or so? And also some breakthrough or cutting-edge technologies, which is not going to just add value on paper, but also in our numbers, overall profitability. Just this last question.

Chetankumar Timbadia — Managing Director

Okay. So in terms of these brands, all brands are working on a lot of technologies, which are featured already, but something which is immediately coming through is in the networking patch as I told you 5G co system production will come in, hopefully, in the later part of the year. So that should be some products which will be under networking path. In the Unified Communication, the next big thing which is going to happen this year, again, in the second half of the year will be interactive. So the government giving a big push to interactive solution with Sarva Shiksha Abhiyan and other lot of initiatives which governments are taking for Trisha, Anganwadi and the Kisan Munch and a lot of things.

The interactive panel is going to be hockey stick growth, I would call it. So there is something which we are very excited, which H2 should be giving that solution and interactive panels that will be one of the main growth drivers for the [Indecipherable]. And the third in the networking security patch, NetScout, Arbor and [Indecipherable]. what we do — they are working on technologies like OCI and DLP — DLP being data lick prevention is if I would simply seize like to explain it to you more if you are sending out a meal, what kind of attachment or what kind of data are you selling out the organizations would like to restrict that what we are writing what — is there any sensitive data going in now, etc, etc, we can discuss the technology more.

But we think there is two, three trains are coming up in the security patch in a bit way and hopefully, adaption to it will come much faster than the? And second, in Adani is bringing the cloud infrastructure into India, the cloud space or the data center space is going to become more — much more competitive. For the adoption from the enterprise will also happen fast with Amazon and [Indecipherable] and Google is already in place and Adani adding to the fire, cloud adoption so high. And once that helps Salim is that connectivity and security both comes into picture, a big ran. So these are the major trend lines, which we feel that should be helping us in this year and maybe the years to come.

Pranayam Jain — Zeel Wealth Securities — Analyst

Thank you for helping us understand these building blocks. You’ve added quite a lot of color to the picture. So just to summarize, we feel that this second half of the year is going to be much stronger, not only year-on-year basis, but even otherwise in the growth trend of the company. So is there any seasonality where first half is decent and second half really picks up these, is it like that? And overall, how do we wish to share the growth and wealth with the shareholders. Do we have some plan on the dividend payout or under other corporate actions? Just want to understand what the management philosophy is.

Chetankumar Timbadia — Managing Director

There is no seasonality. In fact This is an infrastructure. We are basically building box backbone of any organization or a place. So there’s no seasonality. But seasonality in terms of pick up, say, a lot of decision makers are at a holiday. Diwali lot of decision makers are in holiday. So there is a little delay or a gap impact there, in terms of orders and execution. So not only is the delayed portion of it. Otherwise, the project goes on in space and our requirement has been the infrastructure of portion of it, so it goes in it. There is seasonality in terms of overall human vacation period. And the second portion of that wealth sharing or create dividend?

Yeah. Somewhere or currently, we are hungry for cash and want to grow. So we have not been doing that and trying to employ average paise to grow faster. But coming forward, yeah, in the maybe this year or the years to come, we would like to share it with the shareholders in the form of a dividend or maybe some other at the right time, whatever the Board decides would like to share with the shareholders there.

Pranayam Jain — Zeel Wealth Securities — Analyst

Thank you. And wishing you and team all the very best and I hand over.

Chetankumar Timbadia — Managing Director

Thank you very much.

Operator

Thank you. Ladies and gentlemen, it was the last question for today. I would now like to hand the conference over to Mr. Chetankumar Timbadia, DC Infotech & Communication Limited for closing comments, over to you, sir.

Chetankumar Timbadia — Managing Director

Thank you, Michel. I would like to thank the entire team of DC Infotech & Communication Limited for their continuous effort, hard work and dedication which strengthens the company’s resistance to various market cycles. Also, I appreciate all of you for participating in our Median Conference Call. Please do get in touch with our Investor Relations team, if you have any further questions. Thank you.

Operator

[Operator Closing Remarks]