Alldigi Tech (ALLDIGI) Q4 09/10 earnings summary

Executive summary

• FY10 standalone total income rose 21% YoY to Rs 1,327.87m; net loss narrowed to Rs 68.14m from Rs 72.28m.

• Domestic growth and capacity expansion offset weaker exports, but higher staffing, facility costs and depreciation kept earnings negative.

• Consolidated revenue was Rs 1,347.50m and consolidated net loss was Rs 101.05m; consolidated EPS was negative Rs 6.63.

Financial highlights

• Standalone services income increased to Rs 1,220.80m from Rs 964.92m; other income declined to Rs 107.07m from Rs 133.54m.

• Standalone EBITDA was Rs 37.03m; EBIT loss was Rs 64.39m, PBT loss Rs 68.14m and PAT loss Rs 68.14m.

• Standalone basic and diluted EPS improved to negative Rs 4.47 from negative Rs 4.74; no dividend was recommended for FY10.

• Consolidated services income rose to Rs 1,347.50m from Rs 1,038.29m; other income fell to Rs 107.16m from Rs 174.43m.

• Consolidated EBITDA was negative Rs 3.20m, with depreciation and amortisation of Rs 133.58m and PAT loss of Rs 101.05m.

Outlook and guidance

• Management expected significant growth over the next few years as the US economy improved and domestic scale spread fixed costs over higher volumes.

• Growth strategy combined organic expansion in domestic and international markets with active consideration of inorganic opportunities.

• Payroll services growth was expected from investment in a technology platform, process capabilities and domain expertise.