What’s next for Sri Lanka’s toymaker TOYP?
Posted May 11, 2019 12:20:30Sri Lankan electronics company TOYP, which has already seen its stock rise over the last year after it reported a surge in demand for its TOYO-1 tablet computer, has seen its shares fall significantly in the last two weeks.
The stock fell by 1.6% in trading on Tuesday, to close at 5,832 paise ($86.12).TOYP’s stock fell more than a quarter of a percent on Thursday to 1,738 paise, as investors questioned the company’s business model and the lack of profit.
Sri lanka-based TOYP reported revenue of 1.1 billion paise last financial year, up from 1.07 billion pais in 2018.
The company has also seen a surge of interest from overseas investors in the smartphone segment, according to TOYP Chief Executive Officer Bizjit Choudhury.
The Indian smartphone market is expected to reach $1.5 billion in 2020 and the global market is projected to reach around $100 billion by then, according TOYP.
However, the company has not been able to sustain this growth rate, according the company.
TOYP’s revenue fell by nearly 6% to 5.6 billion paisa in 2018, while its earnings rose by less than 1% to 6.4 billion paisi in 2019.TOYP has been unable to attract foreign investors because it has yet to develop a viable sales channel for the product.
Its sales have been on the decline for several years, according Choudamury.
Despite the problems, TOYP said its operating profit rose by 0.6%, to 4.9 billion paiseris, in the financial year ending March 31.
The company also said it was confident in its growth prospects for the current fiscal year, which ends in March 2019.
To date, the Indian market is only worth about 2 billion paises, and the rest of the markets have been unable or unwilling to absorb the huge investment from the Indian companies.
To make matters worse, TOYA-1 is currently selling for a premium of 6,500 paise to about 4,000 paise on the black market.TOYA has not announced a date for a final decision on the sale of the product, Choudemury said in an interview with Reuters last week.
TOYP has been trying to build a foothold in India by launching a number of products in the country.
The TOYI-1 was designed to be used in the home, the TOYTECH tablet, a tablet computer and other products.
The tablet computer is expected in 2019 to cost about 3,000 to 5,000 rupees ($7 to 10) depending on features.
The TOYOC tablet computer will cost around 3,500 rupees to 3,700 rupees.
TOYS is currently planning to launch an all-in-one tablet computer in India in 2019 that will cost about 1,200 to 1-1,500 Rupees ($1 to 2.5) depending upon features.