Avantel Q4FY18 posts loss on higher tax expense

Avantel reported its results for the quarter ended March 31, 2018. The company’s standalone revenue for the quarter came in at Rs. 14.28 crore, registering 38.4 per cent yoy increase.

EBITDA for the quarter fell by 6.1 per cent yoy to Rs. 0.77 crore with a corresponding margin contraction of 255 bps. EBITDA margin for the quarter stood at 5.4 per cent. This margin contraction was led by jump in employee benefit expenses and cost of materials by 106 per cent and 22 per cent, respectively.

The net loss for the quarter came in at Rs. 1.29 crore vs net loss of Rs. 0.15 crore in the corresponding quarter last year. This was mainly due to higher deferred tax expense of Rs. 1.72 crore in the quarter.

Looking at the full year numbers, we see that revenue jumped by 51 per cent to reach Rs. 52.1 crore while EBITDA rose by 192 per cent to 11.26 crore. The company reported net profit of Rs. 17.3 crore vs Rs. 0.88 crore in FY17.

The company's board of directors has recommended a final dividend of Rs. 4 per equity share of the face value of Rs 10 each.

Avantel is engaged in the business of manufacturing telecom products and provides related customer support services.

On Tuesday, the stock opened at Rs. 465.10 per share, down by 10 per cent from its previous close of Rs. 516.65 and locked into lower circuit of Rs. 465 on the BSE.