GTL Q2 net falls 18% on exit from IT services

BS 200 SCORECARD

GTL's net profit for the second quarter ended December 31, 2006, declined 18.05 per cent to Rs 9.85 crore from Rs 12.02 crore posted in the comparable quarter of the previous financial year.

Its total income rose to Rs 213.94 crore during the quarter under review, higher than Rs 136.58 crore registered during the second quarter a year ago.

On a consolidated basis, network services major posted a net profit of Rs 20.80 crore during the reporting quarter up 66.13 per cent from Rs 12.52 crore recorded during the same period a year ago.

The company's total income rose to Rs 292.70 crore in Q3, up from Rs 180.48 crore recorded during the same period of the previous financial year, according to a statement issued by the company to the BSE today.

During the quarter, the company had exited its IT services business to concentrate on core business areas in network services space, which has the potential to generate more "sustainable return".

GTL had underwent a restructuring exercise last year and transformed it revenue mix to focus on the opportunities in network services business. This impacted the company's net profit on a standalone basis during the quarter.

The company said in a release that its consolidated revenues from global operations surged 64.97 per cent to Rs 293.47 crore during the quarter under review, against Rs 177.89 crore recorded during the corresponding period last year.

The costs of sales and services and delivery stood at Rs 228.63 crore (77.91 per cent of revenues) on a consolidated basis, against Rs 119.05 crore (66.92 per cent of revenues) during the corresponding period in the previous year. This was because most of the revenue for the current quarter was in the nature of turnkey projects.

The headcount for the company, including contract employees, during the quarter was 4,121.