Alldigi Tech (ALLDIGI) Q4 08/09 earnings summary

Executive summary

• FY09 total income rose 6% to Rs 1,098.46 million, while the net loss narrowed 47% to Rs 72.28 million; EBITDA turned positive at Rs 18.06 million.

• Domestic growth and improved foreign-exchange realizations offset weaker exports; management said H2 operated above break-even and expected volume growth to support future profitability.

• Consolidated revenue reached Rs 1,212.73 million and the consolidated net loss narrowed to Rs 97.35 million from Rs 196.33 million.

Financial highlights

• Standalone services revenue declined 3% to Rs 964.92 million; other income increased to Rs 133.54 million, including a one-time Rs 42.8 million foreign-exchange gain on returned subsidiary capital.

• Standalone EBITDA was Rs 18.06 million versus a Rs 24.08 million loss; loss before tax was Rs 70.23 million versus Rs 110.56 million, and net loss was Rs 72.28 million versus Rs 135.50 million.

• Consolidated revenue increased to Rs 1,212.73 million from Rs 1,011.47 million; consolidated net loss narrowed to Rs 97.35 million from Rs 196.33 million.

• Basic and diluted standalone EPS were both a loss of Rs 4.74, compared with a loss of Rs 8.89 in FY08.

Outlook and guidance

• Management expected profitability in coming years if volumes increased, noting operations were above break-even in H2 FY09; no numerical earnings guidance was stated.

• Growth strategy combined organic expansion with acquisitions, with continued pursuit of opportunities in the domestic and international markets.

• Pune and expanded Bengaluru and Mumbai delivery facilities were expected to become operational in Q1 FY10.