GTL profit slips 21% to Rs 32 cr
Network services provider GTL posted 21% decline in net profit at Rs 32.14 crore during the third fiscal quarter following higher interest cost and foreign exchange losses.
By ET Bureau |
MUMBAI: Network services provider GTL posted 21% decline in net profit at Rs 32.14 crore during the third fiscal quarter following higher interest cost and foreign exchange losses. Its revenues increased only 4% to Rs 468 crore as telecom operators slowed down network expansion plans due to liquidity crunch in the global market. GTL���s operating profit was up 5% to Rs 56.82 crore.
The company���s board has approved a buyback offer at Rs 260 per share, aggregating to Rs 225 crore, subject to approvals from shareholders, lenders and regulatory authorities. The company���s promoters will not participate in the buyback.
���In view of the sufficient availability of cash reserves to meet future liquidity requirements, the company has proposed to return excess cash to shareholders,��� GTL CMD Manoj Tirodkar said at an analyst meet in Mumbai on Thursday. The GTL stock closed flat at Rs 220 in a weak Mumbai market on Thursday.
The buyback is expected to impact share performance positively by reducing weighted average cost of capital and improving earnings per share. Mr Tirodkar also said in view of the global slowdown, uncertainty on 3G and WiMax guidelines and deferment of expansion plans of operators, the company���s revenue guidance had been revised downwards. GTL now expects to close FY09 with revenues of Rs 1,850-1,900 crore against the earlier target of Rs 2,100 crore.
The company���s board has approved a buyback offer at Rs 260 per share, aggregating to Rs 225 crore, subject to approvals from shareholders, lenders and regulatory authorities. The company���s promoters will not participate in the buyback.
���In view of the sufficient availability of cash reserves to meet future liquidity requirements, the company has proposed to return excess cash to shareholders,��� GTL CMD Manoj Tirodkar said at an analyst meet in Mumbai on Thursday. The GTL stock closed flat at Rs 220 in a weak Mumbai market on Thursday.
The buyback is expected to impact share performance positively by reducing weighted average cost of capital and improving earnings per share. Mr Tirodkar also said in view of the global slowdown, uncertainty on 3G and WiMax guidelines and deferment of expansion plans of operators, the company���s revenue guidance had been revised downwards. GTL now expects to close FY09 with revenues of Rs 1,850-1,900 crore against the earlier target of Rs 2,100 crore.
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