The revenue of Atria Convergence Technologies (ACT), a high-speed fiber-optic broadband provider in India, crossed Rs 2,000 crore in FY22, but the company’s profit shrank by over 14% due to the fallout of a deal with Partners Group. The company’s operating revenue grew 9.8% to Rs 2,157 crore in the fiscal year ending March 2022, with internet service forming 89.1% of the total operating revenue. Collections from cable television and distribution services formed 8.4% of the total operating revenue, while revenue from installations/value added services and the sale of traded goods collectively increased by 10.4% to Rs 53 crore. Employee benefits were the largest cost center, accounting for 28% of the overall expenditure. Unlike FY21 when its profit grew over 41%, Atria Convergence Technologies (ACT)’s profits declined by 14.3% to Rs 342 crore in FY22 from Rs 399 crore in FY21. With the surge in total cost, its ROCE and EBITDA margin also dwindled to 29.88% and 40.20%. On a unit level, ACT spent Re 0.8 to earn a single unit of operating revenue.
According to the article, Atria Convergence Technologies (ACT) experienced a decline in profits by 14.3% to Rs 342 crore in FY22 from Rs 399 crore in FY21. This decline was attributed to the surge in total cost, which led to the ROCE and EBITDA margin dwindling to 29.88% and 40.20%, respectively. On a unit level, ACT spent Re 0.8 to earn a single unit of operating revenue. It seems like ACT is facing tough competition from larger players like Jio and Airtel, and as a smaller player, they may need to focus on protecting their existing markets while also looking for opportunities to expand for growth. Given their relatively spread out network, this could be a challenging task. It will be interesting to see how ACT navigates this competitive landscape in the coming years.