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Brief us about
your journey so far?
The company was started in 1994 as IT staffing and IT
enabled company. In 1999, we opened back office in Chennai.
We entered the capital market in 2001. In 2004, we merged
with another company called XIUS, which became the telecom
division of Megasoft, which is a leading global provider of
Advanced Roaming, OSS and Convergent Service Delivery
Infrastructure solutions to Wireless & Wire line Network
Operators and Service Providers.
From 2004, we
started to focus on telecom products globally, slightly away
from IT staffing and IT services. We have divested IT
services last year and now fully focussed on the mobile
telecom market. The company is clearly seeing growth coming
back in the telecom sector. With all the cost optimization
measures put in place last year, we are operating on a 30%
EBITDA levels currently
Brief us about
your revenue segments in percentage terms.
About
75% of business comes from the US, 10% from Latin America
and 15% from rest of the world.
Are you planning
any acquisitions?
The
company is looking to acquire a mobile applications or
telecom infrastructure company for around US$50mn (around
Rs2.25bn). The process for the same will begin later this
year. We are looking at generating cash and long term
contracts. We want to expand business globally and slowly go
into Asian markets. We will further expand our business in
both South America and North America.
Brief us about
your promoter holding?
iLabs group, which is one the founding private equity
investor, holds around 18% stake, while 7.5% is owned by
promoter & Chairman Mr. Ravi Sanna Reddy and 5% is owned by
me.
Brief us about
your hiring plans?
We have a total of about 500 employees. We are planning to
hire more 60 employees.
Brief us about
your Q1 financials?
The company has reported a robust financial performance for
the quarter ended 31st March 2010.The company has returned
to profitability in Q1 2010, posting a net profit of
Rs.41.7mn as against a net loss of Rs45.7mn for the quarter
ended December 2009.
Improved cash
collections results in debtor days getting reduced to 110
days from 240 days year on year. Strong cash flows enabled
the company to retire Rs260mn of debt during the fourth
quarter alone. Growth in US pre-paid mobile market benefited
the company through increased revenues from this sector.
What is the
outlook for 3G services?
From
subscribers’ point of view, 3G services are excellent for
real time mobile applications like games, streaming videos,
etc. From operators’ point of view, availability of
additional bandwidth and spectrum for data , opens up higher
value revenue streams, (much better than voice) including
mobile Apps and many IT companies are poised to launch new
mobile Apps – all in all 3G looks very promising.
What is the
current debt?
We have a debt of US$34mn. |
