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Global Tele net profit surges.

Apr 25, 2000

Global Tele-systems which was incorporated in 1987 is primarily engaged in e-commerce,engineering services,consumer telecom(now hived off) The chief reason for the whopping reason for the net profits is the extraordinary income of Rs 1190 m derived from profits on disinvestments in group companies I.e Global Electronic E-commerce Services,Global Wireless Technology and Broad system Multimedia Pvt. Ltd. During the current year I.e 2000-01 the company has redeemed non convertible debenture shares worth Rs 1,800 m by issuing shares of Global Electronic Commerce Services Ltd.This makes the company debt free and ideally placed to acquire and expand as it has reserves of approximately Rs 3,000 m.

As a policy decision the company intends exiting from telecom business totally and focussing entirely on e-commerce,internet, call centres,intellectual property rights,engineering and project services. The company has adopted accelerated depreciation by providing Rs 739 m for 99-00 against Rs 256 m for 98-99.The company has declared a dividend of 30% for 99-00.

(Rs m) FY1999 FY2000 Change
Sales 5,350 6,252 17%
Other Income 44 1,242 2723%
Expenditure 4,117 4,182 2%
Operating Profit (EBDIT) 1,233 2,070 68%
Operating Profit Margin (%) 23.0% 33.1%  
Interest 314 258 0%
Depreciation 256 739 189%
Profit before Tax 707 2,315 228%
Other Adjustments -  
Tax 76 30 -61%
Profit after Tax/(Loss) 631 2,285 262%
Net profit margin (%) 11.8% 36.5%
Earnings per share 22.26 52.64 136%

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