Avantel reports poor set of Q2FY19 numbers

Avantel standalone revenue for the quarter came in at Rs. 10.07 crore, registering 13.7 per cent yoy decline.

EBITDA for the quarter fell by 65.8 per cent yoy to Rs. 1.5 crore with a corresponding margin contraction of 2329 bps. EBITDA margin for the quarter stood at 15.3 per cent. This margin contraction was partly aided by other expenses.

The PAT for the quarter came in at Rs. 0.62 crore, yoy decline of 80.8 per cent. During the quarter, the company’s other income increased to Rs. 0.26 crore from Rs. 0.06 crore in the corresponding quarter last year.

Avantel is actively involved in design and development of products based on high power broadband wireless, satellite communication and broadband access technologies. The design, development and integration of wireless and access products are carried out using standard and proprietary software tools. It provides satellite communication tools to defence, railways and navy. It also provides wireless technology in the form of products like radar subsystems, radios and RF subsystems. It is also into the business of software development, which includes application development, electronic design services, multimedia and embedded system.

However, ahead of its quarterly result the stock of Avantel traded on positive mark. The stock of Avantel which opened at Rs. 220 apiece soared almost 9 per cent and closed at day high of Rs. 238.90 per share.