AGC Networks (AGC), now known as Black Box, is a globally trusted technology solutions integrator to architect, deploy, manage and secure the customer’s IT environment through customised solutions and services that accelerate business. An Essar enterprise, it has served more than 8,000 customers globally and has 100-plus Fortune 500 companies as its client. AGC’s experts craft and deliver solutions and services aligned to the customer industry. AGC’s strategy is to be ‘glocal’ by delivering solutions to a client locally wherever they are.
During the period under review (FY18-FY22), the company’s income expanded at an impressive CAGR of nearly 64 per cent while its profit-after-tax PAT) grew at a CAGR of 48 per cent, earning it the second spot in its category in the Fastest Growing Companies study.
During fiscal year 2022, AGC achieved a gross turnover of Rs 5,370.17 crore as against Rs 4,674.02 crore it logged in FY2021 on a consolidated basis, reflecting a growth of 14.9 per cent over the previous year. On a standalone basis, the gross turnover was Rs 293.59 crore for the period ended March 31,2022, as against Rs 249.54 crore for the previous year ended March 31, 2021, reflecting a growth of 17-7 per cent. This growth was mainly attributed to a healthy order book reflected in new’ customer booking this year and strong execution capabilities across all geographies.
Impact of inflation on bottom line
On a consolidated basis, the company recorded a net profit before exceptional items of Rs 94.86 crore for FY2022 as compared to Rs 151.48 crore for FY2021 despite higher revenues. The underperformance of bottom-line despite healthy revenue growth w7as due to significant inflationary pressures seen on overall manpower cost including contingent workforce, supply chain disruptions and higher freight costs.
The company undertook additional measures to optimise costs and pass on the additional cost to customers while executing new’ proposals.
AGC’s ability to tailor solutions across quadrants is strengthened through deliver)’ of seamless customer support services. With dominance in India in the enterprise communication space, the combined entity is a strong player in the US and European markets and has a 4,000-strong-team serving clients worldwide through an expanded offerings portfolio and an extended geographical reach across 30-plus countries including North America, Latin America, Europe, Asia Pacific & SAARC countries.
AGC Black Box’s uniqueness in being an orchestrator of technology solutions for customers across verticals is further augmented through a pool of certified and highly skilled engineers – both onsite and remotely — and a team of project architects who understand and recommend technology solutions tailored to the needs of the customer organisation.
In collaboration with global technology leaders like Avaya, CommScope, McAfee, Palo Alto, Cisco, HPE, Prysm, Trend Micro, Juniper, Fortinet, Nutanix, Verint, UiPath, Poly, Genesys and Mitel, among others, AGC delivers domain-focused, flexible and customised technology solutions and seamless services that accelerate customers’ business and ensures return on technology investments (ROTI).
Going forward the global information technology market is expected to grow from $8,384 billion last year to 89,325 billion this year at a CAGR of 11.2 per cent. This works for the business of AGC going ahead.
Source: Business World ( 8 October 2022 )