There has been a significant drop in the revenue of Bangalore-based Krone Communications Ltd (KCL) due to a delay in the implementation of telecommunication projects.

The company, which was depending more on the public sector, has decided to move away from it and concentrate on high technology structured cabling systems into voice and data sector.

According to the company Chairman Klaus Krone, ``KCL has been active in promoting its high technology product. To this extent, it has appointed national and regional distributors, which will result in a more profitable business in 1997 and reduce dependence upon the public sector.''

``Delays in the implementation of some 1.3 million telephone lines have not only affected KCL, but also many of the major telecom manufacturers and suppliers. Although the results in the first half were very positive, KCL has not been able to fulfill its expectation in the remaining 6 months,'' he said.

For the year ending December 96, KCL registered a total income of Rs 20.06 crore as against Rs 22.23 crore for the corresponding period last year, There was a 50 per cent drop in profit after tax from Rs 1.36 crore to Rs 61.46 lakh. PBT was Rs 1.89 crore as against Rs 2.86 crore.

In his Director's report, Klaus Krone informed the shareholders that the entire Telecommunications industry, especially in the Public Sector was affected due to Indian political and economic environment.

Moreover, KCL had to face stiff challenges from other companies, which had copied Krone products and were offering it at significantly reduced prices.

According to Klaus Krone, the KCL lost around Rs 7.5 crore to such companies, which infringed Krone's copyright. KCL is planning to initiate legal actions against them.

On the product technology, he said they will be introducing new high technology products in 1997 with full support from Krone AG and Krone (UK).

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.