Tulip Telecom Ltd. (Tulip), India’s leading enterprise data services provider, today announced its financial results for the first quarter ending June 30, 2011. Tulip posted revenues of Rs. 653.9 cr and a net profit of Rs. 77.1 cr against Rs 64.2 cr in corresponding quarter for the previous fiscal, registering an increase of 20.2%. The company's net sales for the quarter stood at Rs. 653.9 cr against Rs. 525.2 cr for the corresponding quarter in the previous fiscal. The company posted a diluted EPS of Rs 4.75 up 20% over the previous fiscal.
The growth during the quarter was primarily lead by the end-to-end data services offering of the company through its extensive fibre network, further ensuring higher wallet share per customer. The company took significant strides forward in its international connectivity business by adding customers like HDFC Bank & Reckitt Benckiser. The continued focus on Managed Services offering has yielded substantial business traction for the company enabling the company to add customers from diverse sectors. The company further added Karur Vysya Bank, OICL, Matrix Cellular, and Reliance Life Insurance to its portfolio of customers during the quarter.
In a statement, Lt Col HS Bedi, Chairman and Managing Director, Tulip Telecom, said, “In line with our vision, we are seeing a visible shift in our profile from being an Enterprise Connectivity provider to an integrated Enterprise Data Services player. The strategy to provide high quality data solutions and thereby maximize earnings from every customer by servicing their end-to-end connectivity needs is paying off. We are focusing on consolidating the management team with a view to reinforcing service delivery and customer satisfaction levels which we believe will not only enable customer stickiness in the longer run but will also enable us to cement our position as the leading player in Enterprise Data Services market over the next few years.”
Further adding on the operational performance, Sanjay Jain CEO, Tulip Telecom said “The efforts of the last few years have started to yield results and are reflected in the operational and financial performance. We are witnessing robust demand for fibre and we expect this momentum to continue in the future. Managed Services and Data Center segments are also witnessing significant traction. We have reported an improvement in operating margins which is a result of our focus on realigning the business model to enhance efficiency. We believe Tulip is at the beginning of a new phase and we aim to establish ourselves as the leading player in the Enterprise Data Services market in the years to come. We intend to achieve this by deeply mining customer relationships by offering end-to-end data solutions and having a large share of their wallet spend. We are already enthused by the progress so far and are confident of rapid scale up in the future.”
Key highlights for Q1, 2012 include:
Business Highlights:
· Progress towards building world’s 3rd largest Data center in Bengaluru, India is on track. IBM and SCHANBEL were appointed as its partners during the quarter.
· Company is in the process of laying National Long Distance(NLD) fibre of 1200 KM between Mumbai to Chennai
- The route will cover prominent and high bandwidth traffic cities viz Mumbai, Pune Belgaum, Bengaluru and Chennai.
· Company continues to take significant strides in its International Data Connectivity space by leveraging its existing customer base and strong NNI’s with global operators.
· Emerged as a preferred bandwidth provider for R-APDRP projects currently being undertaken by Government of India (GOI). Execution of Uttar Pradesh and Gujarat R-APDRP project well on track.
· Company continues to broaden its product base by creating a strong Managed Services portfolio
Operational Highlights:
* In addition to CARE rating in March 2011, ICRA has reaffirmed its A1 rating of Tulip’s short term Commercial Paper and has issued A+ (Stable) rating for its long term NCDs
Awards and Accolades:
· Tulip attained a leadership position in MPLS/IP VPN Market 2010-11 with a market share of 30.6 percent as per the latest report released by Frost and Sullivan
· Tulip was honored with the Top Indian Company award under the ‘Telecom Equipment & Support Services’ sector by the prestigious Dun & Bradstreet-Rolta Awards 2010 for the third time in row
To view Q1 results, please click on: http://www.tulip.net/
About Tulip Telecom
Tulip Telecom Ltd. (BSE: 532691/NSE: TULIP) is India’s leading Enterprise Communications Service provider. The Company’s data network has the largest reach of over 2,000 locations globally. The Company has a global presence with over 3,565 employees and more than 2,200 customers. Tulip designs, implements and manages communication networks of large enterprises on long term contracts to include enterprise communications connectivity, network integration, managed and value added services.
