Hughes Tele.com's path to growth continues. One of India's leading private telephony and broadband companies, it has reported an 81% growth in revenues during FY02. The company pruned its losses by 29% YoY to report a lower loss of Rs 1.5 bn. In the fourth quarter, the company reported approximately 24% growth in revenues and a lower loss of Rs 442 m (down from Rs 1.4 bn last year).
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Hughes Tele.com is a broadband network based telecommunication operator, which currently provides services through over 165,000 lines connected to business and residential customers in 10 cities in Maharashtra & Goa. In addition to conventional voice telephony services, the company also provides broadband services.
One of the most encouraging aspects of Hughes Tele's performance was its positive operating profits. In FY01, the company had declared an operating loss of Rs 636 m. The cash loss declined by 73% to Rs 348 m (previous year Rs 1,298 m). As per the company's release, Hughes Tele's customer lines clocked a growth of 131% to reach 160,000 by end of March 2002. It also succeeded in capturing over 40% of the total lines added in Mumbai during the year.
The company has been in the news due to the departure of its CEO, Mr. Prakash Bajpai some time back. The company's attempts to align with the Tata Group also fell through over pricing issues. The company's stock trades in the range of Rs 6-7, much below the issue price of Rs 12. On a fundamental basis, it will still take some time for the valuations to improve. However, if the management succeeds to find a strategic partner, the valuations could strengthen.
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