Aksh Optifibre, a franchisee of BSNL and MTNL in India, has reported a 2 percent sequential growth in revenues from its IPTV service iControl and VoIP service Pigeon for the quarter ended December 2008. Aksh is one of the franchisees for PSU telcos BSNL and MTNL for these two services and competes with HFCL-related company Smart Digivision (MyWay). The status of other competitors – Time Broadband and BSE listed IOL Netcom, is not known. The company had previously noted its services business is expected to break even in a few quarters. EBIT loss is down 9 percent sequentially to Rs. 76.19 million and 23.7 percent year on year over revenues of Rs. 14.27 million in the quarter.
The company continues to increase its investment in the business: in December, the company approved the raising of $8 million as part of its $20 million fund raising plan through the issue of convertible securities such as global depository receipts or foreign currency convertible bonds (FCCBs).
Aksh planned to repay retail lenders for an earlier issue of FCCBs worth $7 million which are due in 2010, and is using $1 million for other purposes.
Aksh had hived off its manufacturing operations into a subsidiary Aksh Technologies Ltd.
Aksh Optifibre has reported an 86 percent year on year fall in net losses to Rs. 19.89 million in the quarter ended December 2009, though net sales have crashed to Rs. 14.27 million from Rs. 588.68 million recorded in the corresponding quarter in 2008. Total revenue is also down 96 percent QoQ. The company’s expenses have been scaled down – raw material costs amounted to Rs. 0.2 million compared to the Rs. 293.51 million in the previous quarter and Rs. 431.48 million in December 2008. Employee costs are also down 53 percent sequentially to Rs. 17.32 million. The company’s earnings per share has improved to -Rs. 0.34 compared to -Rs. 2.41 in December 2008.