Railtel Corporation Of India (RAILTEL) Q4 03/04 earnings summary

Executive summary

• FY2003-04 operating profit was ₹4.24 crore before interest, depreciation and tax; net loss widened to ₹15.74 crore from ₹1.15 crore in FY2002-03.

• Network expansion connected all four metros and four mini metros; 23,606 route km of fibre was laid and 17,452 route km lit by March 31, 2004.

Financial highlights

• Gross receipts were around ₹26 crore; around ₹10 crore was booked as gross revenue, with the balance recorded as customer advances.

• Net loss after depreciation and tax was ₹15.74 crore, versus ₹1.15 crore in the prior year; the CAG review reports FY2003-04 operating income of ₹9.79 crore.

• Reported service income included bandwidth revenue of ₹785.23 lakh and tower-space rental of ₹104.90 lakh; dark-fibre lease revenue was ₹88.67 lakh.

Outlook and guidance

• FY2004-05 revenue receipts target was ₹100 crore; STM-16 equipment was expected by late 2004, supporting higher earnings in Jan–Mar 2005.

• STM-16 broadband network across 24,300 route km was targeted for completion by March 31, 2005; the overall network target was about 40,000 route km by March 2008.

• MPLS-IP backbone commissioning was expected by December 2004, enabling broadband VPN and internet services for corporate and government users.