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 Q3 FY 09-10, SPEL reported sales of Rs 22.09 Crores ( 14% growth in rupee terms compared to same period last year) with a PAT of Rs 2.42 Crores (Rs.3.87 lakhs for the same period last year FY 2008-09). The performance during Q3 FY 2009-10 improved due to increased sales coupled with the Industry stability.

While the Global Semiconductor Industry showed negative trend, SPEL surged ahead with a positive growth during 2009. The recession created a vacuum for new products and technologies which in turn creates a growth market. The inventory burn and lack of orders have created a huge backlog for customers and suppliers in general and they aim to attain sufficient inventory levels for all their customers as demand continues to grow.

Management had introduced various Cost and Energy saving measures during the previous quarter. These have started producing results during this Quarter itself. Due to these proactive approaches SPEL has been effective in riding the recession wave and emerge out of it with negligible impact.

According to many industry experts in the Semiconductor industry, the year 2010 would see an industry growth of around 10% to 14% while some predict growth as high as 22%. In any case, the industry is gearing itself to start the New Year with a positive outlook. According to market firms Gartner & WSTS, the semiconductor industry saw a decline of 11.4% in 2009 reaching to US$226 Billion. With the first signs of recovery starting in November 09, Industry is poised to grow 12.2% in 2010 reaching revenue of US$ 249.6 Billion and continuing into 2011 with a CAGR of 2.8%.

To tap this opportunity SPEL has invested, from internal generations, Rs.7 Crores during FYQ3. This will increase the annual capacity by 27 Million units and will yield additional annual revenue of Rs. 8.5 Cr. This will soon be followed by another major capacity expansion with investment of about Rs. 26 Cr.

Unaudited Financial Results ( Provisional) for the quarter ended Dec 31, 2009