Alldigi Tech (ALLDIGI) Q4 03/04 earnings summary

Executive summary

• 15-month period ended Mar. 31, 2004 produced a net loss of Rs. 1,649.84 lakh, versus net profit of Rs. 170.56 lakh in the year ended Dec. 31, 2002; periods are not comparable.

• Performance was hit by underused expanded capacity after a major client changed policy; a larger contract was signed, with management expecting full capacity use and a turnaround in the current year.

Financial highlights

• Service income was Rs. 2,494.08 lakh for the 15 months, versus Rs. 1,971.14 lakh for the year ended Dec. 31, 2002; the periods are not comparable.

• PBIDT was a loss of Rs. 1,025.84 lakh; PBT was a loss of Rs. 1,658.90 lakh, including Rs. 149.42 lakh interest and Rs. 483.64 lakh depreciation and amortization.

• PAT was a loss of Rs. 1,649.84 lakh after a Rs. 9.06 lakh tax credit; no dividend was recommended.

• Total expenses reached Rs. 3,521.91 lakh, compared with Rs. 1,523.93 lakh in the prior-year period; the reporting periods differ in length.

Outlook and guidance

• Unaudited results for the five months ended Aug. 31, 2004 showed turnover of Rs. 234 million and PBT of Rs. 56 million.

• Management cited existing and new long-term contracts, full use of expanded capacity, and meeting all debt obligations since Mar. 31, 2004 as grounds for expecting profitable operations.