SSTL Q1 net loss at Rs666.40 crore, revenues up 3-fold

SSTL’s revenues grew by three-folds to Rs236.2 crore during January-March quarter of FY’11, against Rs78.6 crore in the same period last year

Sistema Shyam TeleServices Ltd (SSTL), which operates under the MTS brand, said its net loss widened by 63% to Rs666.40 crore for the first quarter ended 31 March 2011, though its revenues grew three-fold.

“The decrease in margin is on account of increase in operational costs due to further scale up operations across all circles. Additionally, the circles of UP East, West and Gujarat, were launched in the latter part of 2010, hence the impact of their launch was felt in Q1 2011,” SSTL, which has equity participation by Russia-based Sistema, the Russian government and the Shyam Group of India, said in a statement.

Revenues of the company grew by three-folds to Rs236.2 crore during January-March quarter of FY’11, against Rs78.6 crore in the same period last year.

The revenue growth was driven by a 168% increase in subscriber base over Q1’10, the statement added. “For the first time, our revenue growth during the quarter was faster than our growth in wireless subscribers. This is a strong reflection of our continued efforts to target quality customers,” SSTL president and CEO Vsevolod Rozanov said.

The company had posted a net loss of Rs408.1 crore in the first quarter of FY’10. During the quarter, revenue growth was faster than the growth in total wireless (Voice and Data) subscriber base. Blended mobile Average Revenue Per User (ARPU) for the quarter remained consistent at Rs82, against a declining trend in the market, the statement added.

By the end of Q1 2011, SSTL expanded its mobile data services to 130 cities in India, including all five metros.

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Vijaya Bank revises interest rates on domestic term deposits

Deposits for one year to less than two years would fetch interest rate of 9.25% per annum and two years to less than three years 9.35% per annum

Vijaya Bank revised interest rates on domestic term deposits with effect from today.

Keeping in mind the current trends and customer expectations, some new maturity periods with attractive interest rates have been introduced, the bank said in a release.

Deposits for one year to less than two years would fetch interest rate of 9.25% per annum and two years to less than three years 9.35% per annum.

Interest rates for shorter maturity periods too have been enhanced, ranging from 0.50% to 0.25%. Senior citizens would continue to be eligible for 0.5% additional interest for all categories, it said.

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March quarter results: How have the large-caps performed?

Organisations with market capitalisation between Rs2,000 crore to Rs10,000 crore posted net profit growth of 35% over the March 2010 quarter—with aggregate net profit at Rs13,690.52 crore

For the March 2011 quarter, we analysed a total of 1,300 companies, out of which 1,211 have announced their results. Moneylife studied the performance of large-cap, mega-cap and mid-cap companies.

Large-cap companies (with Rs2,000 crore to Rs10,000 crore market capitalisation) were the most balanced performers with sales growth of 22% (aggregate sales Rs1,86,395.17 crore); operating profit growth of 26% (aggregate operating profit Rs28,139.75 crore) and net profit growth of 35% (aggregate net profit Rs13,640.65 crore) over the same quarter of March 2010.

Of the large-cap companies, the highest sales growth of 67% (sales of Rs2,078.78 crore) was achieved by PTC India in the energy sector. Its operating profit growth was 264% (operating profit Rs34.34 crore) and its net profit growth was 142% (net profit Rs33.51 crore). On the operating profit front, Gujarat NRE Coke was a high performer with a growth of 181% (operating profit of Rs65.16 crore). Its sales were Rs459.38 crore and its net profit was Rs50.82 crore. In terms of net profit growth, Godfrey Phillips was a good performer with 294% growth (net profit Rs56.32 crore). Its operating profit was Rs92.35 crore and its sales were Rs463.36 crore.

Gujarat State Fertilizers & Chemicals was also a good performer with net profit growth of 457% (net profit Rs205.14 crore), and operating profit of Rs316.96 crore and sales of Rs1,122.49 crore.

Among the poor performers in large-cap companies, Tata Teleservices (Maharashtra) had a negative sales growth of 8% (quarterly sales Rs579.49 crore); a negative operating profit growth of 44% (quarterly operating profit Rs93.95 crore) and a negative net profit growth of 399% (quarterly net loss Rs330.50). Mahanagar Telephone Nigam Ltd had a negative sales growth of 5% (revenue Rs855.01 crore); an operating profit growth of 78% (operating loss Rs587.28 crore), and a net profit growth of 30% (net loss Rs1,099.58 crore).

(On 8th June, we will cover the performance of mega-cap companies)

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