Alldigi Tech (ALLDIGI) Q4 10/11 earnings summary

Executive summary

• FY11 standalone revenue rose 9% to ₹1,451.21m; net loss narrowed to ₹39.45m from ₹68.14m, while EBITDA increased to ₹68.64m from ₹37.02m.

• Consolidated revenue reached ₹1,585.18m and net loss narrowed to ₹75.78m from ₹101.05m; results include Retreat from February 1, 2011 and are not strictly comparable YoY.

Financial highlights

• Standalone services revenue rose 16% to ₹1,415.45m; other income fell 66% to ₹35.76m, partly because prior-year income included customer-related recoveries and interest.

• Standalone EBITDA was ₹68.64m vs ₹37.02m; depreciation and amortisation was ₹103.38m, and FY11 net loss was ₹39.45m vs ₹68.14m.

• Consolidated total income increased to ₹1,626.45m from ₹1,454.66m; loss after tax and minority interest narrowed to ₹75.78m from ₹101.05m.

• No dividend was recommended for FY11 because of the annual loss.

Outlook and guidance

• Management expected significant profitability improvement in coming years, citing domestic growth and fixed-cost absorption; it anticipated further traction in both US and domestic markets.

• A 100-seat Bedford, Texas delivery center was positioned to strengthen US marketing and delivery; it became operational in December 2010.

• Growth plans emphasized organic expansion, domestic and international client wins, and potential acquisitions to enter new domains and markets.