Spice posts 42% YoY revenue growth

Spice posts 42% YoY revenue growth

New Delhi: Spice Telecommunications, an established name in the realm of telecom service provider announced on 10 October the audited results of the company for the quarter ended 30 September.

The impressive topline posted at Rs2650 million, up 42%, which is significantly higher than corresponding quarter last year with an increase of Rs786 million. Speaking on Spice’s performance Dr B.K Modi, chairman said: “This performance is encouraging and is a result of our relentless efforts. Following our highly successful IPO in June that was oversubscribed by 37 times, and our excellent performance in two major circles of Punjab and Karnataka, we are optimistically looking forward to deliver more success stories in the telecom services area to a national level, providing relevant additional choice to customers across India"

The growth in company’s subscriber base has been phenomenal; up by 59% and the town coverage has grown from 374 towns to 747 towns in Punjab and 302 towns from 150 in Karnataka.

Scale efficiencies have led the Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) up by 80%, with an increase from Rs422 million to Rs760 million. The EBITDA margin improvement has been 28.7% compared to 22.6% last year.

The company’s decision to partially prepay the bank loans, as considered in company’s IPO has resulted in a negative Rs55 million profit after tax. But for this extraordinary payment, the company’s profit after tax would have been Rs31 million against a negative Rs248 million last year, which is a huge improvement in bottomline.