XL Telecom sees robust topline growth ahead

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In an interview with CNBC-TV18, K Vasudeva Rao, ED, XL Telecom gave his perspective on the quarter gone by and the road ahead.

Below is a verbatim transcript. Also watch the accompanying video.

Q: Could you just take us through the numbers?

A: The current quarter ending September 30, which is the third quarter for us this fiscal. We ended up with topline of about Rs 61 crore and the net profit after tax is about Rs 12 crore.

Q: Last quarter you had losses because of inventory write downs is that pretty much out of the way?

A: No. This will be the last quarter in which we had to go through. Technically, we have the profit before tax, the loss write down because these were the inventories we carried from 2008. At that time the prices were close to 3 euros and we had to sell about 1.4.

From the October quarter we will be with the new inventories and whatever fresh we have bought in the current market prices in this quarter because of the deferred tax we had provided earlier we had to provide. So we covered those losses.

Q: So at the PBT level you are reporting a loss even this quarter?

A: Yes. Profit Before Tax.

Q: What is the PBT level?

A: It is about Rs 72 crore.

Q: What is your deferred tax write in?

A: It is about Rs 84 crore. So the net profit after taxes has come positive.

Q: What do you expect you will do in the last quarter?

A: We should be doing close to about Rs 100 crore plus. From the current quarter we are targeting Rs 60 crore, about Rs 100 crore this quarter. But effective January we have a very good visibility because the Indian government has cleared the Jawaharlal Nehru Solar Mission where we have order book visibility of close to Rs 200 crore plus. This quarter we should have good growth quarter on quarter on the topline and we continue to do that way.

Q: But you will be in the black even in your bottom-line in the fourth quarter?

A: Fourth quarter operating level yes.

Q: Do you have any fund raising plan at all for the ongoing quarter?

A: We are looking in terms of as we had come and told about few months back about the GDR. We are looking in terms of raising that. It has to be the market conditions and other things should be continued to be in good condition like this then we should look at pricing in this quarter.

Q: This orders that you are speaking about for next quarter are they tied in - the MoUs are signed - is it financially closed, the solar mission orders.

A: They have to get the financial closure that is the reason we have not announced the orders as of yet. But for this quarter we have confirmed orders for exports not for domestic.