Railtel Corporation Of India (RAILTEL) Q4 04/05 earnings summary

Executive summary

• Revenue receipts reached Rs65.34 crore, up 250% YoY; Rs34.36 crore was booked as FY revenue, with the balance recorded as customer advances. Operating profit before interest, depreciation and tax was Rs18.62 crore; net loss was Rs19.50 crore.

• Network expansion and new service platforms progressed, while capital-intensive operations and railway right-of-way (ROW) charges contributed to the loss.

Financial highlights

• FY05 P&L revenue was Rs34.36 crore versus Rs13.57 crore in FY04; earned receipts rose from Rs25.95 crore to Rs65.34 crore.

• Operating profit before interest, depreciation and tax rose to Rs18.62 crore from Rs4.24 crore; interest was Rs9.84 crore and depreciation/amortization Rs29.19 crore, resulting in a Rs19.50 crore net loss versus Rs15.74 crore.

• Total assets were Rs929.29 crore; net fixed assets were Rs723.23 crore, capital work in progress Rs98.37 crore and accumulated losses Rs36.61 crore.

Outlook and guidance

• FY06 revenue receipts target: Rs96 crore; receipts from business operations had reached Rs23.30 crore by August 2005, and an MoU was signed with the Ministry for FY06.

• Targeted OFC coverage was approximately 32,000 route km by FY06 year-end; STM-16 and MPLS networks were progressing, with completion expected between August and October 2005.

• PRS and UTS systems were beginning to transition from BSNL rented circuits to the railway OFC network.