Dishnet DSL registers Rs 91.8 crore loss

Chennai-based connectivity provider Dishnet DSL Ltd has made a whopping loss of Rs 91.8 crore for the year ending March 31, 2003, which is 88 per cent of the Rs 103.84 crore total income for the same period.

The company officials have however projected a topline of Rs 180 crore and a net profit after tax of Rs 5 crore for the fiscal 2003-04.

The company, as on March 31, 2003, had reported an accumulated loss of Rs 271.76 crore which is 80.20 per cent of the total shareholders fund.

V Srinivasan, chief executive officer (CEO), Dishnet DSL Ltd said, "Heavy losses during the initial years of operations in our business is common and in fact is also planned. High capital expenditure during the initial stages comes with a high depreciation element."

Sify Ltd, a comparable competitor to Dishnet DSL, had for the year ending March 31, 2003 had earned a topline of Rs 197 crore ($43.7 million) and a net loss of Rs 131.27 crore ($29.17 million) during the year.

Dishnet's net loss during 2002-03 increased by 73.5 per cent over the loss of Rs 52.9 crore for the fiscal 2001-02. Turnover for the fiscal 2002-03 increased by 3.8 per cent from topline of Rs 100.04 crore for the year 2001-02.

Srinivasan said, "We became EBIDT (earning before interest depreciation and tax) positive in November 2002. But due to losses in the earlier months in 2002-03, we ended the year with a negative EBDIT (earnings before depreciation, interest and tax). We are however expecting to earn cash profit of Rs 40 crore for the current fiscal. We were the first internet service provider in India to earn cash profit."

He further said that the unsecured loan of Rs 100 crore sourced from parent company, Sterling Infotech in 2003 has been repaid during the year.