Web domain and hosting service provider Net 4 India has posted a Profit After Tax of Rs 5.49 crore for the quarter ended June 3oth 2011, an increase compared to a profit of Rs 3 crore that it posted during the same quarter, last year. Profit Before Tax increased to Rs 8.15 crores for the quarter, up from Rs 4.5 crore reported during the corresponding quarter, last year. The company registered a net revenue of Rs 76.19 crore, a major increase of 55% compared to Q1FY11’s revenues of Rs 49.03 crore. Net 4’s Basic and Diluted EPS increased from Rs. 1.63 to Rs 2.74 per share, on a consolidated basis, during the quarter.
The company reported domestic sales of Rs 72.21 crore, during the quarter, and Overseas market sales of Rs 3.98 crore. Last month, the company had got an approval from its board of directors, for re-organizing its business: Pipetel Communications, a wholly-owned subsidiary of the company, which offers Enterprise Internet Services, VoIP Solutions and Web Services billing and provisioning platforms, will be merged with the company, and the ISP business of the company will be demerged into Net 4 Network Services. Net 4 India had acquired a majority stake in Pipetel Communications for Rs 4.16 crore, earlier this year.
Following the merger, the investments held by the Net4, representing 100% equity shares in Pipetel would stand cancelled against equity share capital of Pipetel, and shareholders holding compulsory convertible preference shares of Pipetel will be allotted 9,59,187 equity shares at Rs. 10 each, of the Company.