Raminfo (530951) Q4 01/02 earnings summary

Executive summary

• FY 2001-02 ended in a loss amid the US-led IT slowdown; management reported turnover of Rs. 1,004.04 lakhs, 21% below the prior year, and a loss before deferred tax of Rs. 186.26 lakhs versus prior-year profit of Rs. 88.25 lakhs.

• Exports and domestic revenue both declined; domestic e-Seva, government projects and banking products offered growth opportunities, while overseas recovery was expected to gain momentum in 2003.

Financial highlights

• Gross revenue was Rs. 104,836 thousand in FY 2001-02 versus Rs. 134,293 thousand in FY 2000-01; reported profit after tax was a loss of Rs. 18,342 thousand versus profit of Rs. 7,980 thousand.

• Export revenue fell 32% and domestic revenue, including training, fell 4.5%; exports contributed 51% of gross revenue.

• Manpower costs declined 12.41% to Rs. 662.66 lakhs; operating and administrative expenses declined 13% to Rs. 335.19 lakhs, reflecting cost controls.

• Depreciation rose 25.21% to Rs. 179.67 lakhs following fixed-asset additions of Rs. 166.75 lakhs; financial expenses fell 69.51% to Rs. 2.00 lakhs.

• No dividend was recommended in view of the FY 2001-02 loss.

Outlook and guidance

• Domestic growth was viewed optimistically; overseas operations were expected to gain momentum in 2003, with FY 2002-03 described as an acid test and FY 2003-04 viewed with cautious optimism.

• Planned e-Seva expansion included 15 additional centres and more transaction services; revenue was linked directly to transaction volumes, with replication in other states also being pursued.

• Back-office processing and electronic data processing were being explored to offset training revenue declines; call-centre training and a US academy tie-up were also under discussion.