Post on 08-Jul-2020
Safe harbor
• Neither the information nor any opinion expressed in this presentation constitutes an offer, or invitation to make an offer, or to buy any security issued by the company. This presentation contains predictions, estimates or other information regarding the Company's operations which are forward looking in nature. While these forward looking statements represent our best current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially and may involve risk and uncertainty. This presentation is prepared for general purposes only and does not have any regard to the specific investment objectives, financial situation and particular needs of any specific person. No liability for any loss will arise with the company as a result of the action taken on the basis of information contained herein.
•For a discussion of the risks and uncertainties that may cause results to differ, you should review GTL’s filings with stock exchanges, including the annual report and quarterly disclosures.
GTL Q3 FY09 resultsJanuary 15, 2009
Analyst Presentation Jan I I
2
Telecom
Business Network Services
Global Headquarters Mumbai, India
Founded 1987
Global Presence
Domain Expertise
Stock Listed on BSE, NSE
Associates 5,940 (As of Dec. 31, 2008)
36 countries spread across Africa,Asia- Pacific,
Middle East Asia,North America,South Asia and
Western Europe
GTL at a Glance
3
Value Chain
NetworkServices
Network
Planning & Design
ProfessionalServices
InfrastructureManagement
NetworkOperations &Maintenance
NetworkDeployment
Energy
Management
Passive
Telecom Infrastructure
Services
GTL GTL Infra
4
GTL Q3 Results at Glance
Dec 31, 2008 Dec 31, 2007
Rs.Cr. Rs.Cr.
International 141.00 98.92 43%
Domestic 326.82 351.39 -7%
Total Net Sales & Services 467.82 450.31 4%
Cost of Sales, Services & Delivery 354.36 335.17 6%
Gross Profit 113.46 115.14 -1%
Selling & Marketing Expenses 8.42 14.00 -40%
Administration Expenses 35.18 34.44 2%
EBIDTA 69.86 66.70 5%
Interest ( Net ) and Finance Charges 19.00 16.10
Depreciation 13.04 12.65
Profit before Other Income and Tax 37.82 37.95
Other Income ( incl. Exchange Gain/( Loss )) (1.24) 4.30
Profit before Tax & Extra-ordinary Items 36.58 42.25 -13%
Net Profit After Tax 32.14 39.25 -18%
Change on
Y-o-Y
BasisGTL (Consolidated)
Quarter ended
5
Telecom Industry Scenario
Economy Telecom Industry Regulations
Global
Economic
Slowdown
Liquidity Crunch
in Global Markets
Deferment in N/W
expansion plans
Margin Pressures
Delay in
introduction
of new services
Uncertainty on 3G
& WiMAX
Guidelines
Delay in
MNP
implementation
High
Interest
Cost
GTL has revised its revenue guidance for FY 2008-09 at Rs. 1,850 -1,900 Crs;
Net Profit Margin expected at 7%-8%
6
GTL’s Strategy Moving Forward
Pursue new areas
of Growth
Cautious Approach
Towards M&A
Strengthen Capital
Discipline
� Focus on opportunities in Energy Management
� Jointly bid with Major OEMs for Domestic and
International MNS contracts
� Focus on targets in International markets with
positive cash-flows
� Adopt Earn-out approach for future Buyouts
� Critically evaluate internal cost framework
� Identify future cash requirements
� Return excess cash to shareholders
Focus on sustained growth & optimum utilization of cash
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Orders won during the quarter
Customer Circles / Country Service Segment
Indus 6 Circles Network Deployment
Alcatel- Lucent 5 Circles Network Deployment
Aircel 4 Circles Network Deployment
DataCom 4 Circles Network Deployment
BSNL 3 Circles Network Deployment & O&M
NSN Oman, UAE Network Deployment & O&M
HuaweiTanzania, Nigeria,
Middle EastNetwork Deployment
Ericsson UKNetwork Deployment
O&M & Professional Services
Alcatel- Lucent France Professional Services
International
Domestic
8
Order Visibility
Rs. Crs
Region Amount
India 1,650
Middle East & Africa 449
APAC 140
Europe 180
North America 15
Total 2,434
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Measures to improve Cost Efficiency
Improve
Operational
Efficiency
Rationalize
Manpower cost
Reduce
Administrative
Cost
� Centralize Project Management processes in India
� Redirect Off-shore engineering work to low-cost
centers in India & APAC
� Identify & eliminate duplication of work and
merge/ consolidate support functions
� Introduce variable pay component linked to
Company’s performance
� Emphasize on greater use of IT systems & video
conferencing
� Reduce communication & traveling expenses
Company expects to save Rs. 60-70 Crs on an annual basis
10
Proposed Buy Back of GTL SharesProposed Buy Back of GTL Shares
11
Features of Proposed Buy Back of Shares
Promoter will not participate in the Buy Back of Shares
The objective of the Buy- back exercise is as outlined below:
� To return money to the shareholders in an investor friendly manner
� To create positive impact on share performance by-
� Reducing weighted average cost of capital
� Improving ROE
� Increasing EPS
Method of Buy- Back
Buyback Amount (Rs. Crs)
Buy Back Price (Not exceeding Rs.)
Open Market Route
(Through Stock Exchange)
225
260
12
Rationale for price of Buy-Back
Note: Net Cash= Net Current Assets – Long Term Debt; Figs as on March 31, 2008 on consolidated basis
Rs. Crs
Scenario 1 Scenario 2
170 181
5 8
850 1,448
331 331
Assumed Share Price of GTL Infra 29 35
28.97 28.97
840 1,014
Add:Other Quoted Investments 35 35
875 1,119
2,056 2,898
9.4 9.4
219 308
Criteria
Aggregate Company Value (A+B+C)
Business
Value
Net Cash
Business Value (A)
PAT of the Company in 2010E
Current P/E (X)
Net Cash (B)
No.of Shares held in GTL Infra (In Crs.)
Investments
No.of Shares (Fully Diluted Basis)
Value per Share
GTL's Investment value in GTL Infra
Total Investments (C )
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Cash Returned to Shareholders
Total Cash returned to Shareholders post proposed buyback & Dividend
in last 3 years will be Rs. 726 Crs
Rs. Crs
Particulars Financial Period Amount
Dividend @ Rs. 20/Share FY 2005-06 190.10
Dividend @ Rs. 2.5/Share FY 2006-07 24.36
Buyback of Shares @ Rs. 300/ Shares FY 2008-09 258.88
Total Cash Distributed to Shareholders (Since FY 2005-06) 473.34
Proposed Buyback of Shares FY 2008-09 225.00
Proposed Dividend FY 2008-09 28.00
726.34Total Cash Returned to Shareholders
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