Raminfo (530951) Q4 10/11 earnings summary

Executive summary

• FY2010-11 standalone gross revenue fell to Rs 443.77 lakh from Rs 613.82 lakh; consolidated income was Rs 536.16 lakh versus Rs 744.09 lakh.

• Standalone net loss widened to Rs 3,544.04 lakh and consolidated net loss to Rs 3,567.03 lakh, mainly due to a Rs 3,179.64 lakh provision for impairment of the US subsidiary investment.

• Severe liquidity constraints disrupted loan servicing and working capital; strategic investment discussions were underway, with operating recovery dependent on funding.

Financial highlights

• Standalone gross revenue and other income fell to Rs 443.77 lakh from Rs 613.82 lakh; consolidated income declined to Rs 536.16 lakh from Rs 744.09 lakh.

• Standalone loss after tax was Rs 3,544.04 lakh versus Rs 1,617.20 lakh; consolidated net loss was Rs 3,567.03 lakh versus Rs 1,641.79 lakh.

• Impairment provision for the subsidiary investment was Rs 3,179.64 lakh; no dividend was recommended due to accumulated losses.

• Employee costs fell to Rs 225.97 lakh from Rs 280.42 lakh standalone; year-end headcount was 91.

Outlook and guidance

• Plans to mobilize investment and stabilize operations through cost rationalization and business-model restructuring were expected to progress during FY2011-12.

• E-governance demand was cited as a growth opportunity, but pursuing projects depended on securing working-capital funding.

• Management expected strategic investor due diligence to conclude before the end of FY2011-12.