Rediff.com India Limited (NASDAQ: REDF) looks like a demise of another Indian growth story. The company’s results were exacerbated by the U.S. dollar move…. India online revenues remained at the same level sequentially but fell by about 7% on a year over year basis in rupee terms. It was the 14% decline in the Indian Rupee in its foreign exchange rate when compared to the US dollar that added insult to injury here. If you convert to dollar terms, Rediff’s sales look to be down 18% on the surface in US Dollars.
The company also posted a net loss for the quarter of -$1.95 million (outside of a gain) versus a net loss of -$1.8 million for the same quarter a year ago.
Rediff claims to command a 34% reach among Indian Internet users. Unfortunately, the Daily Deals model was supposed to be a plus for the company like you have seen in Groupon and LivingSocial.
Rediff is not an endless bank. It said that it had a cash balance of $25.0 million and that it continues to invest approximately $2.0 to $2.5 million per quarter in the business. At the higher-end, that is ten quarters to twelve quarters left of capital on a burn rate.
JON C. OGG
Top Gaining Stocks
Top Losing Stocks