Alldigi Tech (ALLDIGI) Q4 04/05 earnings summary

Executive summary

• Returned to profitability in FY05 after the prior 15-month period’s loss; service revenue was Rs 575.52 million, with reported growth of 230% versus Rs 249.41 million.

• Expanded operational capacity plans from 700 to 1,700 seats, supported by a planned 1,000-seat Chennai facility and increased client demand.

• Completed an IPO and became the first listed Indian pure-play voice BPO provider, according to the directors’ report.

Financial highlights

• Standalone service revenue was Rs 575.52 million versus Rs 249.41 million; EBITDA was Rs 159.34 million versus a loss of Rs 102.58 million in the prior 15-month period.

• Standalone EBIT was Rs 118.54 million versus a loss of Rs 150.95 million; PBT was Rs 104.57 million and PAT was Rs 118.62 million versus a loss of Rs 164.98 million.

• Consolidated revenue was Rs 577.62 million versus Rs 250.58 million; consolidated PAT was Rs 125.18 million versus a loss of Rs 169.66 million in the prior 15-month period.

• Expenses declined as a share of revenue despite higher absolute costs; employee costs were 38.08% of revenue versus 56.35%, and connectivity costs were 16.72% versus 53.24%.

Outlook and guidance

• Targeted above-industry growth for FY06, citing visibility from existing clients and prospects in the pipeline.

• Planned to bring the new 1,000-seat center into full operation before end-2005; full expansion benefit was expected in FY07.

• Planned growth through deeper existing-client relationships, new voice-services clients, and expanded quality-assurance and HR-processing services.

• Expected to build UK and Australian markets to improve time-zone utilization and reduce reliance on US demand.