Onmobile Global

OnMobile Global posted very good numbers for Q3FY13. Its consolidated Net Sales increased by 4.4% y-o-y to Rs.176 crore. International revenues increased 38.9% y-o-y to Rs.113 crore and contributed 64.2% of the Net Sales v/s 48.3% in Q3 FY2012. Its revenue from India declined 27.8% y-o-y and 15.0% q-o-q.

EBITDA increased by 11.2% y-o-y and 25.7% q-o-q to Rs.44 crore and EBITDA margin was at 24.8% v/s 19.3% in Q2FY13.. Operating expenses during the quarter were benefitted by Rs.4.2 crore foreign exchange gain. Its adjusted Net Profit was at Rs.17 crore, an increase of 171.1% q-o-q and a decline of 5.2% y-o-y. This net profit includes gain of Rs.4 crore on sale of remaining stake in Ver Se Innovation. Net cash at the end of Q3 stood at a healthy Rs.162 crore.  The company has managed to bring down its consolidated debt from Rs.82 crore at end of FY12 to Rs.52 crore at end of Q3FY13.

In terms of geographical revenue, Latin America continued to remain its largest growth driver, showing a 105% YoY rise in revenue and maintained its contribution to revenue at 25% as in Q2. Africa grew 94% YoY and Europe too rose 36%. Indian revenues continue to remain impacted due to adverse telecom business environment compounded by regulatory challenges. The company has finalized and implemented its Transfer Pricing policy, with retrospective effect from the beginning of the fiscal year. Thus Effective Tax Rate (ETR) has declined to 35% in YTD FY2013 as compared to 48% in H1 FY2013.