Railtel Corporation Of India (RAILTEL) Q4 01/02 earnings summary

Executive summary

• Commercial operations began after infrastructure-provider licensing; FY ended 31 Mar 2002 with Rs 28.52 million gross income and a Rs 3.69 million net loss.

• Core activity was building an optical-fibre network and selling bandwidth, dark fibre and tower space; most reported income came from bank interest on surplus funds.

Financial highlights

• Gross income Rs 28.52 million, including Rs 26.86 million interest income; service revenue comprised Rs 0.20 million bandwidth, Rs 0.13 million tower space and Rs 0.004 million space rental.

• Total expenditure Rs 39.30 million, including Rs 35.26 million construction-period expenditure transferred to capital work-in-progress; reported net loss after tax Rs 3.69 million.

• Capital work-in-progress reached Rs 320.94 million; capital advances were Rs 105.10 million and net fixed assets Rs 0.78 million at 31 Mar 2002.

Outlook and guidance

• Current-FY receipts from bandwidth, dark fibre and tower space were reported at ~Rs 3.50 crore; the Chairman’s speech cited revenue earnings of ~Rs 3.74 crore.

• STM-16 metro and mini-metro backbone was expected to be ready in the current FY; connectivity to four metros was targeted soon, with the Chairman citing April 2003.

• Internet, email and STD/ISD station kiosks were planned for three pilot sections; prospective joint-venture discussions were to advance as metro connectivity neared completion.