GTL Q1 FY 2004-05 sales up 4.2% at Rs 1704.8 million

· Consolidated international net sales and services up 35.9% at Rs 794.2 million · Rising share of international net sales and services -- 46.6% from 35.7% · Operating profit after depreciation up 19.9% at Rs 282.5 million

Mumbai (PRWEB) July 29, 2004 -- GTL Limited today reported a growth of 4.2% in consolidated net sales and services for the quarter year ended 30 June 2004 at Rs 1704.8 million (Rs 1636.2million). Consolidated international net sales and services of GTL group grew by 35.9% to Rs 794.2 million, from Rs 584.4 million a year ago. The share of international net sales and services in total revenue was 46.6%, compared with 35.7%, a year ago, continuing the trend of the last 2 years.

Improvement in margins, focus on value addition and efficient working capital management led to operating profit after depreciation increasing by 19.9% to
Rs 282.5 million (Rs 235.6 million). Net profit after tax and before extraordinary items increased by more than 100% to Rs 459.9 million (Rs 229.2 million).

Other income (net) was at Rs 203.7 million (Rs 4.5 million), mainly on the back of foreign exchange gains on a stronger dollar.

As a customer-focused company and in step with current business logic, GTL has reoriented its businesses from three into two business groups:

¨   Network Engineering (NE) Division which provides network engineering services to wireless and wireline service providers, telecom OEMs and other enterprises, and
¨   IT Services Division which provides Customer Management Solutions services and managed IT services to large global enterprises.
               
Revenue from Network Engineering (NE) Division was at Rs 794.2 million (Rs 732.6 million), up 8.4% from a year ago. This division strengthened its presence in the Asia-Pacific region and executed several projects in Nepal, Sri Lanka and Mauritius. The NE division is exploring opportunities in the outsourced O&M market especially in the emerging markets.

Revenue from IT Services was Rs 910.6 million (Rs 903.6 million). While continuing to grow its voice business, the division also increased its focus on non-voice based businesses.

Rs. million
                         
GTL Consolidated   
        Quarter ended
             June 30,       Growth%
            2004   2003         
Net Sales
and Services   1704.8   1636.2   4.2   

International
Sales and
Services   794.2   584.4   35.9   

Operating Profit
after
Depreciation   282.5   235.6   19.9   

             GTL Stand - Alone   
        Quarter ended
             June 30,       Growth%
            2004   2003         
Net Sales
and Services   1361.8   1403.8   (2.9)

International
Sales and
Services   453.5   355.6   27.5   

Operating Profit
after
Depreciation   250.5   246.9   1.5

About GTL
Operating from 10 principal global locations, GTL Ltd provides network engineering services to international telecommunications carriers and utilities, and delivers business infrastructure services and customer management services for globally distributed enterprises. Its main domains are banking, finance and insurance, IT and telecommunications, FMCG, and healthcare.

GTL's revenue in FY 2003-04 was Rs 6063.2 million (US$ 133.6 million) on an equity base of Rs 712.8 million (US$ 16.2 million). The company has 4100 employees of which 500 are contractual and 129 employed internationally.

BSE: 500160   
NSE: GLOBALTELE   
Reuters: GTL.BO & GTL.NS   
Bloomberg: GTS.IN

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