S Mobility services unit shows revenue growth but overall Q3 revenue down

S Mobility (formerly Spice Mobility Ltd) continues to see pressure on its core handsets business while revenues from its services unit showed traction for the quarter ended March 31, 2013. The public-listed firm saw revenues from its mobile devices segment falling to Rs 335.4 crore, a decline of about 22% from Rs 429.6 crore in the previous quarter and a 32.6% decline from Rs 497.5 crore in the same quarter last year. However, the loss for the segment was considerably mitigated compared to the same quarter last year. The loss before tax for the segment was Rs 5.4 crore, up from Rs 3.2 crore loss in the previous quarter and a marked improvement from Rs 22.9 crore loss in the same quarter last year.

The services segment saw improved revenues of Rs 58.9 crore for the quarter, up from Rs 56.9 crore in the previous quarter and Rs 55.8 crore in the same quarter last year. The segment has also started reaping profits for the company. The profit before tax was Rs 5.2 crore, compared with Rs 15.2 crore loss in the previous quarter and Rs 0.3 crore profit in the same quarter last year.

Overall, the company saw a significant decline in its total revenue: Rs 394.3 crore for the quarter ended March 31, 2013, down about 19% from Rs 486.4 crore in the previous quarter and down from Rs 553.3 crore in the year-ago period. It was, however, profitable at an operating level, reporting a profit of Rs 2.2 crore for the quarter, compared with Rs 10.6 crore loss in the previous quarter and Rs 20 crore loss in the corresponding quarter last year.

The company informed that its board has approved the transfer of its handset business to Spice Retail Limited, a wholly owned subsidiary, through a slump sale at book value.