Sparsh quarterly loss Rs. 4 Crore
By Bala Shah

BPO Sparsh is a subsidiary of Intelenet Global Services and operates in the Indian market.  Sparsh has 16,000 employees in 20 BPOs across 9 locations in India. On April 9, 2010, Techgoss had exclusively reported on how Indian telecom major Aircel had withdrawn its call centre services being done by Sparsh.  Aircel switched from Sparsh to Mumbai head quartered Spanco BPO.

On Aug 13, 2010, Techgoss had reported on how  BSNL moved its Western Region Inbound Customer Care Process from Sparsh to Spanco.

Sparsh BPO services has announced its quarterly result with a higher than ever loss of Rs. 3.95 crores on account of interest payouts. Sparsh BPO Services' Board of Directors have informed the Bombay Stock Exchange (BSE) that it has a quarterly loss of Rs. 3.95 crores.

Even with a turnover of Rs. 60.52 crores, an operating profit of only Rs. 88 lakhs was generated for the first quarter of the financial year 2010. If the same performance is maintained, the annual loss would be in the region of Rs. 15-16 crores.

Considering a most positive scenario of zero interest rate, which is highly improbable as no banker would lend on such terms to Sparsh BPO Services on account of its negative net worth, a highly optimistic profit scenario would be Rs. 3.52 crores; however this would take them five years to wipe out the accumulated losses.

Sparsh BPO Services depends upon loans from its holding companies, subsidiary companies and parent companies such as Intelenet & Blackstone Holding companies for loans to tide over capital expenditure and operating expenses.

Interest being paid out to a third party - both in cash and fund flow - impacts the company's ability to turn around and make profits. The loss of the BSNL western region's revenue is most likely to increase the gap as the BSNL Western Indian customer care process will soon begin moving out into Spanco's premises.

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