Railtel Corporation Of India (RAILTEL) Q4 07/08 earnings summary

Executive summary

• FY 2007-08 operating turnover reached Rs. 199.82 crore, with net profit of Rs. 56.14 crore; leased network capacity rose 82% YoY to 28 Gbps.ocument-source]4ocument-source]5

• Network expansion continued across optical fibre, long-haul bandwidth and city networks; planned launches included DWDM, NGN and phased NLD services.ocument-source]5ocument-source]6

Financial highlights

• Operating turnover was Rs. 199.82 crore vs Rs. 114.32 crore; revenue receipts were Rs. 213.92 crore, up 74.63% YoY.ocument-source]4

• Profit before interest, depreciation and tax was Rs. 117.85 crore vs Rs. 62.57 crore; PBT was Rs. 56.43 crore vs Rs. 41.08 crore.ocument-source]4

• Net profit was Rs. 56.14 crore vs Rs. 40.85 crore; EPS was Rs. 1.75 vs Rs. 1.27.ocument-source]4ocument-source]19

• Dividend of Rs. 3 crore was paid as interim dividend; Rs. 2 crore final dividend proposed, with Rs. 40 crore transferred to general reserve.ocument-source]4

Outlook and guidance

• DWDM Phase I equipment received in March 2008 and expected to be commissioned by September 2008; Phase II covering ~10,000 RKMs planned for commissioning by March 2009.ocument-source]5

• Countrywide NGN covering 18 major cities was under establishment, with services expected to launch soon.ocument-source]5

• NLD services targeted for phased rollout across 45 cities; VPN growth targeted among banks, corporates and academic institutions.ocument-source]5ocument-source]6