Con-call Notes - GTL Infrastructure

July 21, 2008

Key Takeaways

- Robust revenue growth of 155% in Q1FY09, coupled with a 700bps EBITDA margin expansion from 42.6% to 49.6%. EBITDA improvement attributable to control over the employee costs which increased by 18.6% only.

- Net loss of Rs3.19Cr due to higher interest and depreciation costs.

- In Q1FY09, the company added 350 towers to its portfolio. The sluggishness in tower additions is attributable to the sluggish demand during last 2 quarters.

- Pressure on pricing is evident from the decline in average tower rental from Rs38-40,000 to Rs33-36,000 in Q1FY09 y-o-y.

- GIL expects robust demand during Q3 and Q4 of FY09, as new players are entering the telecom verticals and several new services are likely to be offered.

- The company expects to reach the 10-12,000 towers mark by end-FY09, most of which is expected in Q3 and Q4.

- The company targets to reach 23,700 towers by end-FY11. The plan envisages an aggregate capex of around $1.9bn.

- Funding has already been tied up for the entire amount of capex. It includes fresh issue of equity and rights issue of $170mn, warrants to promoters and FIs of $260mn, FCCB of $300mn and debt of $1.2bn.

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