ROLTA INDIA Befefits From Nuclear Deal

This Tata group company, a likely beneficiary of the nuclear deal, has posted a good performance for the first quarter ended 30^th September 2008, but for the huge MTM forex loss.

Consolidated revenue for Q1 FY-09, on a YoY was up 56.6% at Rs. 346.14 crores, while Q0Q, it grew by 7.8%. EBITDA on a YoY rose by 41.1% at Rs.118.46 crores which on a QoQ showed a growth of 5.6%. PAT before exceptional item was at Rs.85.25 crores, up YoY by 58.4% and by 5.2% on a QoQ basis. But after considering the MTM forex loss of Rs.61.35 crore, PAT has shown a huge fall. YoY it fell 56% while QoQ it fell 53% at Rs.23.90 crore. The MTM loss is on the US$150 million FCCB which is due for maturity only in June 2012.

The company is extremely gungho about the current fiscal’s second half and is amongst the very rare breed of companies which is expecting to maintain growth of 40% in the topline. How is that possible? The company has explained that it operates in unique segments like infrastructure, defence, geo-space, and engineering and is therefore not affected by the banking and insurance slowdown.

The company's current order book position stands at Rs.1,500 crore. Rolta is one company which is expected to benefit from the nuclear deal, mainly due to its JV with the Shaw group, which has a 70-80% of the world market for nuclear power plants design and for installation and commissioning. But the revenue from this is expected to come in only after the next 18-24 months.
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