SPEL Semiconductor Limited, India’s first & only semiconductor IC Assembly & Test Company, was able to maintain its revenues stream in spite of the present global economic scenario. Announcing its unaudited results for Q2 FY 2009-10, SPEL reported, sales of Rs.20.97 Crores with a PAT of Rs. 148.06 lakhs. The performance during Q2 2009-10 improved due to increased sales coupled with the Industry stability. Various cost saving measures which were implemented during the previous quarter have started producing results.

The global economy was boosted by worldwide economic stimulus efforts. Due to a stabilizing economic environment during the quarter and improving supply chain visibility, semiconductor shipments rebounded as inventories were replenished and modest forward-looking purchases were made.

According to industry reports, Semiconductor suppliers have moved to build inventory to achieve supply and demand equilibrium. According to Semiconductor Industry Association (SIA) worldwide sales of semiconductors in Aug 2009 were $19.1 billion, an increase of 5% from Jul 2009 sales of $18.2 billion. The rate of decline also has slowed from the first six months of 2009 during which sales declined by 25 percent year-on-year.

Various incentive programs for energy-efficient products, ranging from automobiles to home appliances, have bolstered demand for semiconductors, which deliver critical enabling technology for reducing energy consumption. Growing sales of netbook personal computers, which now account for approximately 17 percent of notebook PC unit sales, have created an important new market segment, filling a gap between ‘smart cell phones’ and conventional laptop PCs. Personal computers have become especially attractive to consumers as average selling prices for PCs have declined by around 14 %.

To tap this opportunity SPEL has taken steps to invest Rs.7 Cr investment, this will result in increasing the capacity by 2.25 Million units per month to yield revenue of Rs. 8.5 Cr per annum. This will fetch substantial improvement in revenues and PAT for the H2 of FY 2009-2010. Apart from this an expansion of about Rs. 23 Cr is also on cards.

Unaudited Financial Results (Provisional) for the quarter ended Sep 30, 2009