lan eseda industries ltd share price Management discussions
LAN ESEDA INDUSTRIES LIMITED
ANNUAL REPORT 2003-2004
MANAGEMENT ANALYSIS AND DISCUSSION
COMPANY PERFORMANCE
The sales of the Company for the year ended 30th June, 2004 touched Rs.
53.08 lakhs (Pre Year Rs.53.61 lakhs) and Net Profit were Rs. 0.98 lakhs
(Pre. Year Rs.0.57 lakh). Your Company has lost the business due to poor
domestic scenario, industry down trend ,war threats and global recession.
The year under review was one of them most challenging years for IT
industry all over the world. Constant efforts are put to redesign the
planning and implementation process to aim for leadership on the theme of
rapid growth and differentiation .We are confident that the steps taken
will help achieve the size, scalability, brand and ambition necessary to
create the next generation IT Solutions and Services Company.
REVIEW OF OPERATIONS
The Indian IT Industry is one of the top 10 industries in India. The IT
Industry has shown signs of recovery and IT/Technology Expenditure is
expected to rise this year as against a stagnant trend in the past two
years. The domestic growth has been driven by rapid expansion of IT
Infrastructure by Government, Education, Computer Training, Telecom, BPO
and Corporate segments. The Indian IT Industry is interspersed with several
large, medium and small players offering their services. The competition
and challenges to medium size niche players like LEIL is emerging primarily
from large system integration companies.
Your Company is strong in providing IT Infrastructure set-up, support and
management as well as in the system integration business. The wide range of
products and solutions, domain expertise and competency pools created by
the Company over the year has helped in customer retention and addition of
new customer accounts. Clients are looking for a company that is a trusted
advisor and a strategic partner. In response to clients needs, we have been
working on several new service initiatives. Your company seeks long term
partnerships with clients while addressing their various IT requirements.
Your Companys customer centric approach has resulted in high levels of
client satisfaction.
Your Company has reorganized to face new challenges of greater client
expectations, rapidly changing business scenario and heightened
competition. As L part of it business process reengineering the Company is
constantly analyzing the business areas to focus on the most profitable and
productive ones. This has helped in maintaining the profitability levels
despite the reduction in the sales turnover. Your Company has also helped
many of its clients improve their processes and systems by providing
consulting services and high-end products arid solutions.
OUTLOOK
The domestic IT spends is likely to continue its current upward trend.
Organizations have been increasing their IT spends for process improvements
and efficiency enhancements to face competition and increased productivity.
Organizations are widely outsourcing the various activities of managing
their IT infrastructure to increase operational efficiency.
Your Company has dearly drawn its road map as a dominant provider of end-
to-end IT solutions and services encompassing comprehensive services-of IT
infrastructure design, implementation and lifecycle support. Continuous
research and development of new services, products, processes and solutions
allows your Company to enhance quality, productivity and customer
satisfaction through innovation. Initiatives are being taken for
development of solutions on Storage systems, Disaster Management Systems,
Security, Converged Communications etc.
Your company has established a national service network and this will help
in providing supports to a large base of customers. Your company is
continuously evolving new business processes, modifying its existing line
of activities and expanding its business capabilities to gain higher growth
and market share.