Company Review: OnMobile

Company Review: OnMobile
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First Published: Fri, Feb 06 2009. 10 19 AM IST
Updated: Fri, Feb 06 2009. 10 19 AM IST
During Q3FY09, OGL recorded revenues of Rs1157.2 million, a growth of 18.7% Q-o-q and 43.7% Y-o-y. For 9MFY09, revenues grew 50% y-o-y to Rs2910.4 million.
OGL’s EBIDTA grew by 3.2% y-o-y to Rs405.3 million. EBIDTA growth was lower than revenue growth as EBIDTA margins declined by 13.7%.
In contrast, on q-o-q basis, EBITDA increased 48% in tandem with a 6.9% margin expansion arising from lower staff costs (down 434bps) and reduction in SGA expenses (down 251bps). For 9MFY09, EBIDTA grew by 1.1% y-o-y due to margin erosion of 15%.
OGL’s net profits grew by 7.6% y-o-y and 50.6% q-o-q to Rs276.4 million. For 9MFY09, net profits grew by 9.6% y-o-y to Rs611.7 million.
During the quarter, OGL reported other income of Rs251.1 million, a growth of 463% y-o-y led by a 4.2% expansion in net margins post tax. For 9MFY09, other income constituted about 28% of the total profit of Rs611.7 million (post tax).
Management commentary over the short-term was cautious; the outlook for the long-term, however, was more reaffirming.
The management has not specified any growth guidance for FY10E as budgets are in the process of being finalized.
In the last call, however, the management indicated that they see a growth in excess of 50% over the next 2-3 years. For FY09E, OGL expects to grow at 50-55% with net margins of 20-21%.
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First Published: Fri, Feb 06 2009. 10 19 AM IST
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