Raminfo (530951) Q4 00/01 earnings summary

Executive summary

• FY01 gross revenue was Rs 134,293 thousand vs Rs 88,919 thousand; profit after tax was Rs 7,980 thousand vs Rs 12,458 thousand.

• Exports expanded and accounted for 59% of gross revenue; growth was supported by offshore services, domestic government projects, banking products and training.

• Aravali Technologies became a wholly owned subsidiary effective July 1, 2000, following a $7.25m cash-and-stock acquisition.

Financial highlights

• Gross revenue: Rs 134,293 thousand in FY01 vs Rs 88,919 thousand in FY00; profit before tax: Rs 8,825 thousand vs Rs 14,230 thousand.

• Profit after tax was Rs 7,980 thousand vs Rs 12,458 thousand; prior-year adjustments were Rs 75,406 vs Rs 171,941.

• Profit before interest, depreciation and taxes was Rs 29,409 thousand vs Rs 28,468 thousand; interest was Rs 656 thousand and depreciation and amortization Rs 19,928 thousand.

• Export revenue was Rs 75,478,008 vs Rs 43,660,014; domestic revenue including training grew 18% YoY, while exports grew 73%.

• Aravali reported 2000 revenue of $6.40m, gross profit of $1.14m, pretax income of $0.33m and net income of $0.20m.

Outlook and guidance

• US economic weakness was expected to weigh on exports and education and training revenue in the short term; continued slowdown could materially affect revenue and profitability.

• Long-term prospects were viewed positively, supported by quality services, committed employees and technology capabilities.

• Aravali's revenue opportunities had diminished amid the US slowdown; failure of an expected recovery by mid-2001 could adversely affect its 2001 revenue and profitability.

• Plans included opening 10 additional education and training franchise centers during the current year.