Non linear growth in Profit on the back of Strong Performance by Product Business

 Bangalore: Subex Ltd, a leading global provider of Operations and Business Support Systems (OSS/BSS) for communications service providers, announced today that it has recorded consolidated revenue of Rs. 1,247.61 mln  (USD 27.01 mln), and consolidated net profit, before exceptional items, of Rs. 196.03 mln (USD 4.24 mln) for the quarter ended 30 September 2010. Product revenue stood at Rs. 1,079.74 mln (USD 23.37 mln).

 While the top line grew 7% year-on-year, the bottom line (excluding Exceptional Items) moved from a loss of Rs. 32 mln in the year ago quarter to a profit of Rs. 307 mln in the current quarter. This non linear growth in profit is a result of strong performance of the product business of the company, which contributed 86.5% of the total revenue.  This is evident from the fact that while product revenue grew 11.5% year-on-year, product EBITDA grew by 100.5%.

 Thus, the company posted an impressive product EBITDA of Rs.345 mln i.e. 32% as against Rs. 172 mln i.e. 18%, in the corresponding quarter of FY 2010. Consolidated EBITDA for the period stood at 27.6 percent, up from 16.5 percent in Q2 of FY 2010.

Commenting on the business, Subash Menon, Founder Chairman, Managing Director and CEO, said, “We are experiencing increased traction in our ROC platform and Managed Services offerings. Our focused approach is giving the desired results as evident from the growth in revenue and strong EBITDA margin. We are confident of meeting our financial objectives”