Telecard Limited, who is to announce FY06 results on Monday, is expected to post profits after tax of Rs 15 million (EPS: Rs 0.05); 94 percent lower as compared to previous year.
According to an analyst of KASB Securities, the decline in earnings is mainly attributed to higher depreciation and higher financial charges incurred due to the launch of WLL services.
Results are likely to be a non-event as stock price movement would be more sensitive to developments on the tie up with Instaphone if and when that were to come through. In a year where PTCL the incumbent has had a tough time due to growing competition, Telecard is expected to post only an 11 percent jump in top line. The major reason for Telecard lagging behind is that competition has had the best time in Long Distance and International (LDI) telephony, an area, which Telecard has deliberately ignored to focus more on the Wireless Local Loop (WLL) side.
However, WLL has been slow to take off the ground as 54 percent of total new connections were installed in the last quarter and hence the muted YoY growth in the top line.
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