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| GTL earmarks Rs 400 crore capex for 2 years |
| Rajesh S Kurup / Mumbai Apr 23, 2009, 00:40 IST |
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Network services provider GTL has increased its planned capital expenditure for the next two financial years (FY10 and FY11), expecting increased contracts from Indian companies, especially state-owned Bharat Sanchar Nigam Ltd (BSNL). The quadruple increase in capex, from Rs 100 crore last year, comes at a time when Indian companies are pruning headcount and investments.
“We expect more contracts during this year from telecom companies, especially from BSNL, even as a host of new telecom service providers are expected to rollout services during the year. Moreover, we are expanding our presence across multiple locations, both in the country and across foreign shores,” GT Global Head (sales) told Business Standard.
Around Rs 200 crore will be utilised during the current financial year (FY10) and the balance for the next financial year, he said.
The company has bid for BSNL’s 93-million (2G-3G) line rollout, while it’s already setting infrastructure for a host of private players. It’s also in talks with many of the new players for setting up cell sites. He, however, did not divulge the names of private players, citing a non-disclosure agreement.
The ongoing financial crisis has not yet hit the telecom sector, with the government expected to auction 3G and additional 2G spectrum to operators. The companies are expected to bring in investments of at least $2 billion in the next 4 months.
Separately, GTL has posted a drop in net profit of around 42.2 per cent to Rs 28.26 crore on a consolidated basis during the fourth quarter ended March 31, 2009, compared with Rs 48.90 crore recorded during the same period a year ago. The company’s board has recommended a 30 per cent dividend, subject to approvals.
The company attributed the losses to a fall in business during the year, as many telecom firms drew down their usual orders.
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