GTL gains on overseas deal

GTL gains on overseas deal

GTL gained 2.61% to Rs 265.05 at 13:00 IST on BSE, after the company said it has formed a strategic alliance with Ericsson, UK to address the managed network infrastructure services market in the UK.

The company made this announcement during trading hours today, 5 February 2008.

Meanwhile, BSE Sensex was up 23.47 points or 0.13% to 18,683.79.

On BSE, 72,540 shares were traded in the counter. The scrip had an average daily volume of 1.90 lakh shares in the past one quarter.

The stock hit a high of Rs 270 and a low of Rs 259.75 so far during the day. The stock had a 52-week high of Rs 317 on 7 January 2008 and a 52-week low of Rs 127.35 on 14 March 2007.

The mid-cap scrip had underperformed the market over the past one month till 4 February 2008, declining 15.59% compared to the Sensex’s decline of 9.80%.

The company’s current equity is Rs 103.13 crore. Face value per share is Rs 10.

The current price of Rs 265.05 discounts its Q3 December 2007 annualized EPS of Rs 14.27 a PE multiple of 18.57.

Ericsson and GTL will focus on the growing demand for the provision of highly efficient managed infrastructure services for mobile operators. Ericsson currently has comprehensive managed services contracts with tier-1 mobile operators in the UK.

On 4 December 2007, GTL’s wholly owned international subsidiary GTL International acquired 100% interest in Strategic Communication Services, a leading network deployment company in North America.

On 15 November 2007, GTL International acquired 100% interest in ADA Cellworks, a leading network planning and optimization player in Asia Pacific.

On 3 October 2007, GTL bagged a contract for turnkey network deployment and operations and maintenance services from a leading telecom operator in India.

GTL’s net profit surged 242.3% to Rs 33.72 crore on 67% growth in net sales to Rs 362.23 crore in Q3 December 2007 over Q3 December 2006.

GTL provides network engineering and customer management solutions, other allied businesses such as enterprise networks, e-business infrastructure and software development.