Tulip Tele June-quarter net up 20% on healthy demand

Tulip Tele June-quarter net up 20% on healthy demand

Mumbai: Corporate data services provider Tulip Telecom Ltd on Thursday said its April-June consolidated net profit rose 20% on the back of growing demand and a healthy pipeline of new clients.

The company posted a consolidated net profit of 77.22 crore in April-June, compared with 64.16 crore a year ago.

Total revenue rose 24.5% to 654 crore.

“Operating margins have gone up and margin trend should remain healthy in the coming few quarters," said chief executive Sanjay Jain.

The company posted operating margins of 28.5% during April-June.

Tulip added clients such as HDFC Bank , Reckitt Benckiser, Karur Vysya Bank , Matrix Cellular and Reliance Life Insurance during the quarter.

The company is also looking to expand overseas to match the geographical footprint of its Indian customers, Jain said.

Tulip expects to incur a capital expenditure of 400-450 crore this fiscal and to use it to strengthen and expand its fibre networks, existing data centres and fund government project roll-outs, Jain said.

The company will tap its internal accruals and existing lines of credit to fund the capital expenditure requirement.

Additionally, the company will also spend 200 crore this year to develop the data centre it recently acquired in Bangalore, Jain said.

In January, Tulip had acquired a data centre facility in Bangalore to augment its offerings and be able to provide cloud computing and managed services applications. The company is looking to sell 25% in the data centre.

Shares of the company, which the market values at $500.73 million, were almost flat at 153.60. The stock has lost about 13% of its value so far this year.