Alldigi Tech (ALLDIGI) Q4 07/08 earnings summary

Executive summary

• FY08 shifted to a loss: standalone services income fell to ₹990.16m from ₹1,132.79m; EBITDA was negative ₹24.08m and PAT was negative ₹135.50m.

• Consolidated revenue was ₹979.41m versus ₹1,275.24m, with a net loss of ₹196.33m versus net profit of ₹247.35m.

• US customer losses, dollar weakness, higher employee costs and low utilization drove weaker results; new Trichy and Manila delivery capacity supports plans to pursue growth and improve utilization.

Financial highlights

• Standalone total income declined to ₹1,040.26m from ₹1,171.35m; PBT was negative ₹110.56m versus profit of ₹280.72m.

• Standalone PAT was negative ₹135.50m versus profit of ₹281.35m; basic and diluted EPS were both negative ₹8.89 versus ₹20.09 and ₹19.93.

• Consolidated services revenue fell to ₹979.41m from ₹1,275.24m; consolidated loss after tax was ₹196.33m versus profit of ₹247.35m.

• Standalone employee costs rose to ₹709.80m from ₹489.93m and general and administration expenses to ₹203.28m from ₹126.20m.

Outlook and guidance

• No quantified earnings guidance; plans emphasized organic and inorganic growth, domestic client acquisition, cross-geography sales and greater utilization of four delivery centers.

• Trichy and Manila capacity, combined with India delivery, was positioned to help attract larger international customers and serve expected client additions.

• Management cited scope to return to profitability as utilization rises, given the fixed-cost base and added delivery capacity.