Mahindra-British Telecom (MBT), a joint venture between the Mahindra group and British Telecom, has recorded a 64 per cent jump in profit after tax at Rs 26.54 crore for the first quarter ended June 30, 2001 over the corresponding period in the previous year. The same represents a 30 per cent growth in PAT on a sequential quarter basis.
The company's total income jumped by 58 per cent to Rs 124.39 crore for the quarter. The consolidated revenue, including those of its subsidiaries, for the period is Rs 131.4 crore.
With effect from this year, the company has adopted a more conservative depreciation policy in line with the US Gaap resulting in increased depreciation charges amounting to Rs 10.19 crore.
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"The company has been able to move up the value chain during the period. The company's focus on Europe has helped our European business grow by 409 per cent. Business from British Telecom itself grew by 48 per cent," said Kiran Deshpande, managing director, MBT.
"We are now focusing on improving margins in addition to topline growth. Our European and telecom focus has helped us sustain our growth," he said.
Anand Mahindra, chairman of MBT, said the board has taken a conscious decision on the fact that the company will be focused only on providing services to telecom companies.
He also said, "There has been a lot of speculation on our relationship with BT but our relationship is as strong as ever. Their restructuring exercise of creating independent units should provide greater growth impetus for MBT."
Mahindra said the closely-held company was ready with its IPO but was holding it back in view of the choppy market conditions. "As and when the market recovers, we will be ready to hit the market," he said.