The Maestros board is meeting on 20th sept to explore possibility of doing a buy back.
i was a tad disapointed with the last Qtr results and had written to them for some clarifications. The replies from the company are herebelow. Any boarders interested in Maestros may find them of use:
1) Medical Embedded systems operating margins in the last quarter are negative. Any particular reasons?
With reference to question No. 1
Margins for “Medical Systems” segment are negative on account of execution of some low margin govt. orders. This supplies has limited/lower value addition and are apart from Companies value added products.
[specifically executed to strengthen the Companies Installation base/dominance in various States]
[This supplies also carry future revenue potentials as and when their supports are due]
Also the procurement levels were slightly upwards, for execution of the orders in pipeline for subsequent quarters of fiscal 2008-09, The cumulative effect will get spillover in QI & QII.
2) IT standaolne operating margins in the last quarter seem to include some extraordinary income as profitability is higher than revenue. Request if you could pls throw light
With reference to query No. 2
Margins for IT are greater than revenues, as the other incomes are allocable to “IT” segments.
3) Inspite of lease rentals in 07-08 improving to 4.37 cr from 3.27 cr in the previous year, profitability has been flat. I was also keen to understand major expenditure that we incur in this segemnt which seems to affect margins so severely
With reference to query No. 3
There are various cost associated with the properties, being the furnished property, maintenance cost, operational cost, further the same is acquired on financial arrangements and the deprecation which has major impact on its revenue.
Inspite of improvement in lease rentals, margins are disproportionate to revenue; In compare to current year the commitment towards finance cost was much lesser in previous year, In the year 2008-09 improvements in margins are expected, as finance charges will get reduce to great extent.
4) Have we incorporated a new subsidiary or acquired an existing business from a group company. Surprsingly it seems to be in the IT space where Maestros seemed to have been pruning its exposure over the last few years.I would be very thankful if you could pls throw a little light on the subsisdiary and plans etc if any.
With reference to question No. 4
Our Company has incorporated the wholly owned subsidiary Company in free Trade Zone, Sharjah. The new subsidiary has been set up to tap the opportunities available in middle east markets and African continent. The subsidiary is engaged in providing IT and IT enabled services and has competencies like advance infrastructure solutions, business process and integration solutions, data management solutions etc. and specialization like active directory, database management, exchange migration and deployment, identity and secure access etc.
5) What is your view on the business environment for the Medical embedded business and Electronics business.
6) What are our plans for the Infrastructure/IT businesses.
With reference to question No. 5 & 6
Company wants to explore the opportunities available in Infrastructure segment and in Information Technology both this vertical posses tremendous scope, further the Company is also trying to expand by exploring the opportunities available in other geographical areas.
In case of any further clarification, please do get back to us.
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