Gone through the conference call today.It seems that the major issue is with their sales team and mindset of the company.
Reasons for this conclusion :
a) As per them Indian TAM is 1000 crores , growing at 8-10% per annum . They’re not able to tap more than 2-3% of domestic market share after so many years !
b) They are tapping lot of countries globally …it is difficult to undertand why they should go out when there is big local opportunity. This leads to spreading your marketing and sales resources too thin
c)As per the same co-call, global market size is US $ 20 Billion, and they sell hardly 3 million $of product in gloable markets. With a less than 1% market share, the reason given for poor glabal sales growth given is recession. It is really a lame excuse.
It is like a stutent who who always used to egt 2 out of 100 marks in an exams . Once he happens to get 1 out of 100 , his excuse to his parentswas that the question-paper was tough this year !
The company seems to have a lot of potential as well as big TAM ,but tthe growth would be lacklsutre with current mindset .
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