Cable television and broadband service provider Ortel Communications Ltd has reported a loss of Rs 2.8 crore for the quarter ended December 31, 2016, as a combination of factors weakened some of its key operating parameters during this period. In the comparable period of the last financial year, Ortel had posted Rs 3.9 crore profit after tax (PAT).
The BSE listed entity has recorded a 3.02 per cent rise in its total income in the October-December quarter, which grew from Rs 50.2 crore to Rs 51.8 crore. But, its earnings before interest, taxes, depreciation and amortisation (Ebitda) tanked 22.8 per cent in the period under review, from Rs 18.7 crore to Rs 11.8 crore.
Bibhu Prasad Rath, president and chief executive officer at Ortel Communications, said, "Our performance during the quarter was impacted due to a combination of factors which weakened some of our key operating parameters. In spite of this, we have demonstrated a healthy growth in revenues from both cable TV and broadband business on a year-on-year basis, both for Q3 and in the nine-month period of FY17. I am also happy to inform that our business outside Odisha, which turned Ebitda positive last quarter, has remained so during this quarter."
"Overall, we have demonstrated that a strong B2C (business-to-consumer) focused last mile business model in our core market can be profitable and remain confident of replicating the same across newer markets. We continue to believe that this is a sustainable model as we can capture the entire revenue stream across the value chain," he added.
In the April-December period of FY17, Ortel’s total income went up 12.3 per cent to Rs 159 crore. The net profit was marginal at Rs 0.6 crore. Apart from Odisha, Ortel Communications provides cable television and broadband services in Chhattisgarh, Andhra Pradesh, Telengana, West Bengal and Madhya Pradesh. – Business Standard