United Telecoms gets A1

ICRA has assigned a rating of A1, indicating highest safety in the short term, to the Rs. 15 crore commercial paper programme of United Telecoms (UTL).

UTL is a closely held family-run company based in South India, engaged in the business of manufacturing telecom equipment. Over the last decade of its existence, the company has gradually established itself as a supplier of switching equipment to Bharat Sanchar Nigam (BSNL). It has recently started diversifying its activities to include manufacture of new generation transmission equipment. The company has also entered the area of State-wide networking of Government offices and has successfully executed the first such project in India in Andhra Pradesh. For the year ended March 31, 2000 (15 months), it has achieved a turnover of Rs. 184.96 crores and a profit after tax of Rs. 20.24 crores. There are six other group companies under the same management, which are engaged in the area of telecom, IT hardware, electronic components and engineering.

UTL made a foray into cellular operations in Karnataka and Andhra Pradesh during 1996-97. Its stake in JT Mobiles, the erstwhile cellular operator in the above States, has now been sold to Bharti Televentures. UTL is planning to book the loss on this sale during 2000-01. Despite this, the company's cash flow position has not been affected.

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Section  : Business
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