DC Infotech & Communication: A Market Leader In Network Security

“We are well positioned to cater to the domestic as well as international markets while keeping a lean and efficient business model, thereby ensuring long-term, sustainable growth for all stakeholders. some of the recent addition in our portfolio enables us to strengthen our networking solutions and expand geographical footprint in the overseas markets’ in line with our strategy, we continue to build on our portfolio to bring cutting- edge technologies.”
-Management, DC Infotech & Communication Limited

Stock Data

Ticker	DCI
Exchange	NSE & BSE
Industry	IT Hardware

Share Price

Last 1 Month	19.8%
Last 6 Months	87.9%
Last 12 Months	87.9%

Business Basics

The largest networking solution distributor in India is DC Infotech & Communication Limited. Mr. Devendra Sayani and Mr. Chetankumar Timbadia, who between them have a combined experience of four decades in the field, founded the company in April 1998. Network security solutions, wired and wireless solutions, and firewalls/UTM Cloud-based infrastructure security are the areas of expertise for the company. The Company began as a business that relied on distribution. The company, however, transitioned from a distribution-based business to Value Added Distribution of Information Technology products, Networking, Security, surveillance, wireless, broadband, digital signage, firewalls, desktop virtualization, power solutions, and other solutions like network performance, digital performance, cloud security, enterprise security over time.

Since the past 20 years, DC Infotech has focused on this industry and has a large national footprint. The company’s goal is to offer cutting-edge networking, security, and other products and solutions. Currently, DC Infotech has made a name for itself as a market leader in networking, security, and services sales, distribution, and support.  Currently, the business employs sales representatives in addition to a dealer network of about 1600 dealers. It performs the function of an IT distributor by providing a wide range of services. The business serves as a conduit between IT developers and manufacturers, as well as end users and other resellers.

DC Infotech’s Product Portfolio & Services

DC Infotech and Communication has two segments – Products and Security software & services. The Products segment focuses on distributing IT hardware products which are manufactured by various companies like Aten, Dlink, Netgear, Samsung & others. The IT hardware products includes Cables, Router, Switches, Network Infra & Security, Cinema LED etc. The products are sourced from above mentioned brands and are sold to customers through an extensive network of channel partners and dealers across India. The company also offers after-sales support and maintenance services to ensure maximum uptime and customer satisfaction. The hardware products segment is a significant contributor to the company’s overall revenue and growth.

On the other hand, the Security software & services segment offers solutions for cyber security and data protection. The company provides a range of services such as Network Solutions, Data Security, Fiber Cabling, Copper Cabling, SMB & Enterprise Wi-Fi, Surveillance & other solutions. The security solutions offered by the company are designed to protect businesses from cyber threats and data breaches. The company employs a team of experts who work closely with clients to provide customized solutions that meet their specific security needs.

Q3 FY23 Financial Performance

DC Infotech and Communication Limited reported Revenue from Operations for Q3 FY23 of ₹83.92 Crore up from ₹47.92 Crore year on year, a growth of 75%. The Revenue was driven by Products segment which surged by 86% up to ₹71.62 Crore. Consolidated Net Profit of ₹1.69 Crore, up 133% from ₹0.72 Crore in the same quarter of the previous year. The Earnings per Share is ₹1.47 for this quarter.

DC Infotech’s Partnership With Array Networks

Array Networks provides a comprehensive set of application delivery and security solutions aimed at increasing employee productivity, ensuring always-on availability, improving end-user experience, and protecting business infrastructure from attack and data leakage. With more than 5000 happy customers worldwide, the company’s footprint now includes North America, Europe, India, Japan, Asia, Africa, and the Middle East with an emphasis on creativity and talent. The partnership should improve the range of networking solutions offered by DC Infotech and broaden its geographic reach in international markets.

India’s Cyber Security Industry

According to a report by the Data Security Council of India (DSCI), the pandemic nearly doubled the size of India’s cyber security industry, with revenues from cyber security products and services rising from $5.04 billion in 2019 to $9.85 billion in 2021. Rapid digitalization, increased regulatory focus on data and privacy, and rising boardroom awareness of cyber threats were the main drivers of growth. The industry’s growth momentum is not just being driven by major suppliers; India’s cyber security startup and product industry also experienced strong growth, with revenues of $1.37 billion. The APAC region, which includes India, accounted for 58% of global cyber security product sales revenue, while the pandemic saw strong demand from North America, nearly tripling from 2020.

In 2022, the global market for cyber security hardware is anticipated to reach $0.51 billion. This industry’s revenue is anticipated to reach $0.9 billion by 2026, growing at a CAGR of 15.03% between 2022 and that year. The market for information security (IS) goods and services was valued at $150.41 billion in 2021, and by 2024, the total market for this, is anticipated to be worth $174.7 billion. Hardware devices are constantly updated to meet the most recent standards as digitization increases. As a result, the Hardware sector bounced back relatively quickly from recessions.