Ricoh India has achieved revenue of Rs 442 crores, which is almost double of Rs 226 crores in Q1 last year. IT services helped Ricoh India raise the bar with over 237% growth in Q1. Revenue from IT services saw a huge upward plunge of Rs 320 crores from Rs 134 crores in Q1 last year.
The company forayed into IT services a few years ago and in 2014-15 it made about 65 per cent of its Rs 1,637.81 crore revenue from the information technology solutions business. Ricoh’s hardware business which includes printers, copiers, and cameras, contributes around 35 per cent of sales.
However, the three principal Business Domains of the company, namely Imaging, IT Services & Communication, perfectly synergized with each other to enable Ricoh to position itself as a one stop solution provider to meet every need of its customer in the Office domain.
As a result of this approach, the company is experiencing unprecedented growth in all its business domains. In spite of the rapid growth the company has been able to control its external bank borrowings by fulfilling a significant portion of its funds requirements through internal accruals. This was made possible by the strong internal controls, through which the company improved its inventory as well as debt collections. The strong focus provided by the company towards management of its inventory and receivables in the face of its huge business growth continues to strengthen its cash flows. The sharp depreciation of Indian currency in the recent times is unlikely to have any significant impact on the company’s financial performance, as confirmed by the company sources.
The growing IT Services business of the company, which contributes to about two-thirds of its total business, acts as a natural hedge against any forex loss due to currency depreciation. The company does not carry out any imports for this business line and therefore, remains insulated from the adverse impact of the Rupee depreciation to a large extent. The subsidiary of Japanese imaging and office automation major, Ricoh India is currently focusing on the vertical business approach and has recently introduced innovative solutions for banking and finance industry, manufacturing, healthcare, education and the retail sector