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MUMBAI, Jan. 28

GTL Ltd (formerly Global Tele-Systems Ltd) has suffered a 63.38 per cent decline in net profit - at Rs 21.39 crore - for the third quarter ended December 31, as compared to the net profit of Rs 58.41 crore during the corresponding quarter of the previous year.

Net sales for the quarter declined 39.66 per cent, to Rs 137.03 crore from Rs 227.1 crore.

The fall in both net profit and sales is higher than what the company had predicted during its profit-warning issued in November 2001, which had indicated a 40 per cent to 50 per cent drop in net profit and a 25 per cent to 30 per cent drop in sales.

The decline was led by the fall in revenues from software and application services by 66 per cent as well as the 23 per cent fall in enterprise networking services revenues because of reduction in revenues of the low margin hardware portion of the business, said a company news release.

The company said its core focus area of network engineering had shown excellent topline growth of 236 per cent.

The company has issued revised guidance, anticipating revenues of Rs 525 crore to Rs 575 crore for the current financial year; and net profit (excluding extraordinary items) in the range of Rs 90 crore to Rs 110 crore. It has identified international operations as a thrust area and continues to invest in human resources, its manpower increasing to 2,165 as at end December 2001, as compared to 1,995 as at end December 2000.

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