Alldigi Tech (ALLDIGI) Q4 06/07 earnings summary

Executive summary

• FY07 services revenue rose 23% to Rs 1,132.79 million; EBITDA increased to Rs 364.00 million and PAT to Rs 281.35 million.

• Growth came from existing and new clients; staffing constraints limited second-half expansion, while organic growth remained steady.

Financial highlights

• Standalone total income was Rs 1,171.35 million vs Rs 933.32 million; services revenue was Rs 1,132.79 million vs Rs 922.56 million.

• Standalone EBITDA was Rs 364.00 million vs Rs 277.96 million; PBT was Rs 280.72 million vs Rs 211.61 million; PAT was Rs 281.35 million vs Rs 216.37 million.

• Consolidated revenue was Rs 1,313.23 million vs Rs 953.90 million; PAT was Rs 247.35 million vs Rs 206.78 million. Prior-year figures include B2K only from Jan. 25, 2006 and are not comparable.

• Standalone operating revenue grew 22% in exports and 59% domestically; total services revenue increased 23%.

Outlook and guidance

• Expected organic growth to continue at the FY07 level; customer pipeline described as strong, with steady client additions.

• Recruitment drive aimed to expand the agent pool; a 200-seat Trichy delivery center was expected to open in Q2 FY08.

• Planned a Philippines delivery center and potential strategic BPO acquisitions to extend global delivery and support combined organic and inorganic growth.