Firstcall India maintains ` Buy ` on GTL with a price target of Rs 389 as against the current market price (CMP) of Rs 350 (Dec. 01, 2009).

The broking house said, Net Profit for the quarter ended September 30, 2009 was Rs 502.2 million as against Rs 383.0 million for the corresponding quarter in the previous year, recording a Y-o-Y growth of 31%.

Operating Profit for the quarter ended September 30, 2009 was Rs 870.6 million as against Rs 723.6 million for the corresponding quarter in the previous year, recording a Y-o-Y growth of 20%.

The gross profit for the quarter ended September 30, 2009 was Rs 1,412.5 million (25.21% of revenue) as against Rs 1,212.4 million (24.82% of revenue) during the corresponding quarter in the previous year.

The Selling & Marketing Expenses increased to Rs. 141.9 million (2.53% of revenue) in the current quarter from Rs 123.6 million (2.53% of revenue) in the corresponding quarter for the previous year.

Administration Expenses were Rs 400.0 million (7.14% of revenue) in the current quarter as against Rs 365.2 million (7.48 % of revenue) in the corresponding quarter for the previous year.

GTL is a leading Network Services company in the world that involved in designing, planning, engineering, implementation and maintenance of almost all elements of telecom networks.

Total head count of the company as on Sep. 30, 2009 stood at 5,942. As on Sep. 30, 2009 the order book of the company stood at 26,030 million.

As on Sep. 30, 2009 the Cash & Cash Equivalents of the company stood at 15,893.2 million. GTL signed a Managed Services Contract with Airtel for providing Network Services for their WiMAX.

Focuses on opportunities in energy management. GTL entered into a `Global Supplier Cooperation Agreemen` with Huawei for worldwide cooperation Network.

Focuses on sustained growth and optimum utilization of cash. Main focus areas of the company are O&M, professional services and infrastructure management.

During the quarter company won five major contracts from international market. The Net sale of the company is expected to grow at a CAGR of 10% over FY08 to FY11E.