Tulip Telecom

The company did not do too well for the quarter ended 30th Sept 2012. Net sales was at Rs.637 crore, down 9.4% and coupled with operating costs, the operating profit was at Rs.144 crore, down 30%. OPM was at 22.6% down from 29.1% and 27% on QoQ. The company had an interest outgo at Rs.58.5 crore and for its 18-month period ended 30th Sept 2012, interest outgo was at Rs.277 crore. Net profit was at Rs.19 crore, down 84% sequentially and down 79% (YoY). Delayed decision making in a subdued economic environment leading to slow down in order inflow, pressure on pricing led to the fall in profitability.

At end of 30th Sept, the company had repaid debt of approximately Rs.245 crore and total consolidated  debt stood at Rs.3,032.2 crore (includes outstanding FCCB and the redemption premium). The stock was up yesterday, on the back of news that it may be able to repay its FCCBs worth Rs.760 crore ($140 million) by end of December 2012. These were the same bonds which had come up for redemption in August and the company had failed to repay bondholders. Promoters hold 67.83% stake and of this 92.40% stake has been pledged.