Saturday, November 10, 2012

OnMobile Global Q2 net falls 35%, stock tanks 6%


Shares of OnMobile Global, country's largest value-added service (VAS) company, fell as much as 6 percent intraday on Thursday to Rs 39.55 after reporting poor numbers in the July-September quarter of current financial year.

The profit after tax fell 35 percent quarter-on-quarter to Rs 6.22 crore in the quarter due to weaker revenues, lower EBITDA and lower other income.

Total income dropped 2.9 percent QoQ to Rs 179.8 crore during the second quarter, primarily driven by 8 percent QoQ drop in domestic revenues

Earnings before interest, tax, depreciation and amortisation (EBITDA) went down to Rs 34.8 crore from Rs 35.88 crore and EBITDA margin declined to 19.35 percent from 19.37 percent QoQ.

Other income was down by 37.3 percent quarter-on-quarter to Rs 3.7 crore in the September quarter.

EBITDA and PAT included a forex translation loss of Rs 6.8 crore for the quarter.

Results were operationally weak with continued challenges in domestic market and flat quarter for international business.

Domestic revenue was down around 8 percent QoQ and 17 percent YoY. The management attributed it to tough telecom business environment and regulatory challenges.

International revenue rose around 1 percent QoQ to Rs 106 crore. The growth in emerging markets like Latin America and Africa offset by decline in developed markets.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd 

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