Alldigi Tech (ALLDIGI) Q4 05/06 earnings summary

Executive summary

• FY06 standalone services income rose to ₹922.56m from ₹575.53m; EBITDA reached ₹277.96m and PAT ₹216.37m, supported by customer growth, new client wins and improved capacity utilization.

• Consolidated results included B2K only from Jan. 25, 2006; consolidated revenue was ₹939.02m and PAT ₹206.78m, making year-on-year comparisons non-comparable.

Financial highlights

• Standalone total income was ₹933.33m versus ₹575.64m; PBT was ₹211.61m versus ₹104.57m, and PAT was ₹216.37m versus ₹118.62m.

• Standalone basic and diluted EPS were ₹18.40 and ₹18.15, respectively, versus ₹14.37 and ₹14.12 in FY05.

• Consolidated total income was ₹953.90m, PBT ₹202.57m and PAT ₹206.78m; consolidated basic and diluted EPS were ₹17.50 and ₹17.35.

• Standalone year-end cash and bank balances rose to ₹158.06m from ₹27.71m; operating cash flow was ₹198.12m.

Outlook and guidance

• FY07 growth was expected to exceed the industry average, with business visibility from existing clients and prospects in the pipeline.

• Optimal utilization of the expanded Chennai and Bangalore capacity was expected in FY07; recruiting and training activity was underway to meet demand.

• Existing-client expansion, new customers, and UK and Australian pipelines were key growth priorities; added services included technical support, quality assurance and HR processing.

• ISO 27001 certification was targeted for FY07 following implementation of BS 7799 information-security standards.