Aksh Optifibre has reported a quarter of declining results – its total income for the quarter ended September 30th 2010 declined 6.1% sequentially to Rs. 2.31 crore, from Rs. 2.46 crore reported last quarter; note that of this, only Rs. 1.17 crore is classified as Income from operations, which is down sequentially from Rs. 1.33 crore. In this context, Aksh’s annual report reveals (pdf) that its Managing Director Kailash Choudhari received Rs. 1.24 crore in renumeration during FY10, a year in which the company reported Income from operations of just Rs. 8.3 crore. FY10, so far, has reported a lower revenue run-rate for Aksh. It’s loss for the quarter has reduced to Rs. 3.93 crore, from Rs. 6.8 crore, even though its operating loss has increased.

Aksh is an IPTV (iControl) and VoIP (Pigeon) franchisee for government owned telecom operators BSNL (20 cities in North India) and MTNL (Delhi and Mumbai), and has to provide services to customers in collaboration with these telecom operators. The company has begun fibre to the home FTTH trials in in Jaipir. They’ve faced issues in the past, in working with MTNL.

With IPTV taking a back-seat to DTH in India, the company appears to be eying Dubai: during the quarter, it incorporated AOL FZE, a wholly owned subsidiary in Dubai. Last quarter, Aksh Managing Director, Dr. Kailash Choudhari, resigned to move to its International business, following which the company’s board gave the go-ahead for raising up to $333 million in funding.

In a SWAT analysis in its annual report, Aksh points out its dependence on government owned telecom operators, the fact that the business is capital intensive and has a long gestation period, as key weaknesses. IPTV is also sensitive to packet loss and delays, and broadband penetration is low beyond major cities.

Aksh Optifibre Board Approves $333 Million Fund Raising