• PAGE ONE
• INDEX
• HOME

Global Tele net drops 12.8 pc

Our Bureau

MUMBAI, July 20

GLOBAL Tele-systems Ltd (GTL) has reported a 12.88 per cent dip in net profit (before extraordinary items) for the quarter ended June 30, 2001 as compared with its net profit for the previous corresponding quarter.

Net profit before extraordinary items fell to Rs 27.08 crore from Rs 31.09 crore. Total income rose 8.6 per cent to Rs 133.8 crore from Rs 123.2 crore.

Operating profit dipped 12.9 per cent, to Rs 47 crore from Rs 54 crore. Operating profit margin before ESOP costs dropped to 35.19 per cent as compared to 43.89 per cent in the corresponding quarter of the previous year, said a news release.

The company said the traditional revenues of GTL such as software system integration, e-commerce consultancy, IPR/licensing were affected due to the slowdown in the international and domestic markets causing pressure on margins.

Revenue from software and application services declined 2.31 per cent quarter on quarter, and from enterprise network services declined 6.79 per cent. Revenue from engineering services grew 163.04 per cent.

(The figures for the quarter under consideration are consolidated with the figures of the erstwhile Global Electronic Commerce Services Ltd which was merged into the company).

Total expenditure during the quarter increased to Rs 86.7 crore from Rs 62.8 crore.

Under the expenditure head, personnel cost rose to Rs 25.3 crore from Rs 7.5 crore. The company said this was on account of the issue of warrants issued to its employees as of June 30, 2001 under the ESOP scheme out of which 98,087 were converted into eq uity shares with the company providing for only the mandatory cost of ESOP at Rs 7.8 crore.

Also, the manpower of the company stood at 2,638 as against 1,535 in the previous corresponding quarter.

Inclusive of extraordinary income of Rs 131.9 crore, the net profit for the previous corresponding quarter stood at Rs 162.9 crore.

The company said it continues to increase its infrastructure and manpower in the US, Europe and Asia Pacific markets.