Raminfo (530951) Q4 04/05 earnings summary

Executive summary

• FY05 revenue increased 2% to ₹673 lakh; net loss narrowed to ₹111.67 lakh from ₹379.49 lakh in FY04.

• Domestic revenue rose 54%, while exports declined amid fewer overseas on-site consulting opportunities.

• No dividend was recommended due to the FY05 loss.

Financial highlights

• Gross revenue was ₹673.14 lakh versus ₹660.33 lakh; profit before interest, depreciation and taxes was ₹77.45 lakh versus a loss of ₹148.36 lakh.

• Loss before tax improved to ₹161.91 lakh from ₹443.99 lakh; loss after tax narrowed to ₹111.67 lakh from ₹379.49 lakh.

• Manpower costs fell 17.41% to ₹372.66 lakh; operating and administrative expenses fell 41% to ₹218.21 lakh.

• Bad debts and advances written off were ₹49.81 lakh; prior-year doubtful-debt provision was ₹168.46 lakh.

Outlook and guidance

• FY06 Indian IT industry growth was expected at 30%–32%; the US subsidiary projected revenue growth of 50%–60% in 2005 and 2006.

• Priorities included government projects, banking solutions and pursuing on-site and offshore contracts through sales efforts and business partnerships.

• Agreements for Uttar Pradesh eSuvidha and Maharashtra iSethu were expected to be signed in 2005.