GTL, the network services company, recorded a net profit of Rs 32.78 crore for the first quarter ended June 30, 2008, a growth of just 2% from Rs 32.14 crore for the corresponding quarter last fiscal.
The company’s revenues grew by 11% at Rs 418.92 crore as against Rs 376.5 crore for the corresponding quarter in the last financial year. Ebidta for the quarter ended June 30, 2008 was Rs 65.08 crore as against Rs 56.63 crore (post adjustment for IT services operating profit) for the corresponding quarter in the previous year recording y-o-y growth of 15%.
Manoj Tirodkar, chairman & MD, GTL, said, ?The net profit growth for the quarter has gone down largely because the operators are going slowly on the deployments. Also, some of the projects are incomplete and they will be billed out in the second and third quarters. But with a pipeline of contracts worth Rs 2,366 crore, we maintain our guidance of 25% growth for the year.?
The depreciation charges and mark to market losses for the quarter stood at Rs 11.61 crore and Rs 5.45 crore respectively as against Rs 11.44 crore and Rs 8.22 crore in the corresponding quarter of the last financial year.
?We are currently looking at three to four serious players in the network planning and design, professional services and infrastructure management space from the Middle East and African markets for acquisitions, each worth $100 million to $ 250 million. But we expect them to happen only by the third or fourth quarter.?
In July 2007, GTL sold off its enterprise network and managed services business to Orange Business Services, the business communication arm of France Telecom. This business had generated an income of Rs 30.81 crore in the corresponding quarter in the last financial year, which was duly accounted for in the books. The income from network services business was Rs 376.50 crores in the corresponding quarter last financial year.