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SERVICES: Systems integration, networking, AMC, FMS
EMPLOYEES: 350
BRANCHES: 4
ADDRESS: 126, Valluvarkottam High Road, Nungambakkam, Chennai
TEL: 044-52199500 |
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| STRENGTHS |
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Strongly entrenched in verticals like IT, SMB and manufacturing |
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High-levels of technical competence with 70% staff dedicated to support functions |
| WEAKNESS |
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Low service revenues, thus denying better profitability prospects |
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Struggling with cash flow management |
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A debutant in the Silver Club, Chennai-based Precision Group outshines all
other solution providers as far as revenue growth is concerned. The company
recorded a phenomenal 100% increase in its turnover and posted Rs 64 crore in
the fiscal year 03-04 as against Rs 32 crore in 02-03. While the service
component in its balance sheets came down to 14% last year, as against 22% the
year before, it maintained its overall profitability.
Last year the company also enhanced its geographical reach and saw its
Bangalore and Hyderabad branches bringing in nearly 30% business.
It also added over 100 employees taking the total headcount to about 350. In
order to lay greater emphasis on systems integration and service activities,
Precision also established a distinct business division called Tech Serve.
This systems integrator continued to be heavily-dependent on HP business with
50% revenue coming from the vendor's products. HCL contributed 15% with IBM
and Microsoft bringing in 10% each.
The HCL business was largely led by Toshiba notebook sales, where the company
recorded a massive 300% growth. It sold about 550 units of the same last year.
Its Intel server business too witnessed a 300% jump last year. But what
really stands out on the company's performance chart is its PDA business. It
sold nearly 1,700 units of the same for various sales force automation (SFA)
projects for prestigious clients like Procter & Gamble and Dr Reddy's
Laboratory.
Some other major project wins were from clients like Aptech (Rs 2.2 crore)
and Polaris (Rs 2.5 crore). Over 50% of its business came from Software
Technology Park (STP) clients with SMBs and manufacturing bringing in the rest.
The company put special focus on its internal processes and value addition as
well. It invested significantly on skill-set building exercises, got people
certified on ITSM (IT service management) framework and also got into customized
software development.
Its intent of being strong on technology was also evident from the fact that
over 70% of its manpower belonged to the technical support function.
Being strongly positioned in the HP business, it also won Best partner award
for customer satisfaction for the southern region.
For 04-05, Precision is looking at crossing Rs 100 crore-mark with ease and
aims to be a Rs 500 crore-organization within next five years.
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