Global Tele's 3QFY01 results have shown a drop in revenues of 2% compared to 2QFY01 and the drop in net profits is 43%. According to the company the drop in revenues is due to the seasonal nature of turnkey contracts in the area of software and engineering services. The net profit figure last quarter had a significant Rs 281 m as extra ordinary item exlcuding this the drop would have been 22%. What was disheartening was the fact that operating margins have taken a hit. The operating margins came down to 30.7% from 40.5% in 2QFY01. 62% of the revnues in 3QFY01 came from e-commerence, software and internet group of the company. Engineering services group accounted for 28% of the revenues.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
Diluted number of shares
Diluted Earnings per share*
P/E (at current price)
The company's focus on software services, application services (ASP) and engineering services has enabled the company to maintain a growth of 37% in revenues and 111% in net profit (before other income) over the corresponding period.
At a market price of Rs 755, the stock is trading at a P/E multiple of 14 times its 3QFY01 annualised earnings.
LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India. Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: email@example.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407