Raminfo (530951) Q4 98/99 earnings summary

Executive summary

• FY99 gross revenue rose to Rs 51,144 thousand from Rs 34,576 thousand; profit after tax increased to Rs 8,245 thousand from Rs 4,475 thousand.

• Export activity was delayed, leaving revenue and profit below prospectus projections; a fully functional US office was expected to support improvement in FY00, barring unforeseen circumstances.

• A tax-free 10% dividend was recommended on Rs 32 million of equity, with Rs 5 million proposed for transfer to General Reserve.

Financial highlights

• Gross revenue was Rs 51,144 thousand in FY99 versus Rs 34,576 thousand in FY98; profit before tax was Rs 9,181 thousand versus Rs 4,950 thousand.

• Profit after tax was Rs 8,245 thousand versus Rs 4,475 thousand; profit before interest, depreciation and taxes was Rs 19,469 thousand versus Rs 12,732 thousand.

• Actual FY99 gross revenue of Rs 51,144 thousand and profit after tax of Rs 8,245 thousand were below prospectus projections of Rs 86,000 thousand and Rs 19,514 thousand, respectively.

• Operating cash flow was Rs 11,522 thousand in FY99 versus Rs 7,380 thousand in FY98; fixed-asset purchases were Rs 10,900 thousand.

Outlook and guidance

• The US office was fully functional; FY00 revenue and profitability were forecast to improve, barring unforeseen circumstances, as export activity began contributing.

• Two training and software-development centres in Hyderabad and Chennai were expected to become operational by October 1999.

• Strategy focused on e-commerce, with an initial emphasis on onsite contracts before expanding into project consulting and offshore development.

• Training plans included an IBM Global Services authorized-partner agreement for e-business solutions and alliances for certified IT education programs.