Looking to the good performance of the Company, HTMT's Board at its meeting held today recommended a total dividend of Rs. 7/- per share (70%) for approval by its shareholders in the forthcoming AGM, including interim dividend of Rs.5/- per share already paid in the month of May 03.

The total income of HTMT for the financial year 02-03 as compared to the previous year rose by 57% from Rs. 72.94 crores to Rs. 114.47 crores and the net profit by 33% from Rs. 46.73 crores to Rs. 62.03 crores.

As regards the results for the quarter ended the 31st March 03, the Company's revenue increased by 29% as compared to the corresponding quarter of 01-02.

As per the audited consolidated financial results of HTMT and its subsidiaries for the year ended 31st March 03, the combined revenue has gone up by 32% to Rs. 216.78 crores and the consolidated profit after tax by 86% to Rs. 58.32 crores.

Following successful completion of the BPO contract for claim processing with a major health care insurance company in the US, HTMT has during the year renewed its BPO contract for another two years with an option for further renewal of one year. The renewed contract is likely to yield approximately Rs. 100 crores (over US$ 20 mn) in revenues during this period.

The total employees' strength in HTMT's IT division grew by 63% from 953 at the beginning of last fiscal to the present level of 1550 owing to expansion in BPO/Call Center business.

During the year HTMT has also developed a relationship for one of its clients for offshore call center services in Philippines wherein 100 seats are currently in operation.

New Business

HTMT has secured three new clients - one from USA for claim processing, and two for call center services from clients in USA and UK and these contracts are expected to generate additional revenues of over US$ 25 mn (Rs. 120 crores) in the next three years.

Mr. S. Solomon Raj, Vice Chairman, HTMT said, "Our stringent quality standards, domain knowledge and contact center experience coupled with our ability to provide our customers perceptible cost efficiency, has played a key role in the clients' choice of HTMT"

Expansion Plans in Philippines and Mauritius

HTMT is actively considering expansion of BPO business in Mauritius as desired by its insurance customer for geographical diversity.

In order to broad base its service delivery capabilities and enhance its domain expertise, HTMT is exploring possibilities of acquiring a 900 agent Call Centre Company at Philippines, which is likely to be ramped upto 2000 agents. The Call Centre Company is already serving a few Fortune 500 clients. The legal and financial due diligence exercise respectively by Crawford Bayley & Company, Solicitors and PriceWaterhouseCoopers has been completed. A decision on the acquisition structure and other details will be taken shortly.

Guidance for 2003-04

Considering the new contracts for the ITES business already signed and the projects in the pipe-line, HTMT expects that its revenue will grow by about 60% with a net profit margin of 45% on the total turnover in 2003-04.

Investments in Media /Telecom Businesses

The Media and Telecom businesses, which were incubated and nurtured by the Hinduja Group, as privately held companies, were brought under the umbrella of HTMT through a series of mergers and share swaps so that the Company can become a true convergence play and unlock the value latent in these businesses, thereby creating value for its shareholders.

Kudelski SA, Switzerland has recently agreed to take in 2.41% in the equity of HTMT's Media and Telecom subsidiary viz: IMC for US$ 12 mn, giving IMC a valuation of about US$500 mn (Rs.2300 crores), Nagravision, Kudelski's subsidiary, will become a technology partner with IMC and supply its state of the art conditional access system.

The Company's associate, Fascel Ltd., the largest cellular services provider in the Gujarat circle with more than 5 Lac subscribers has posted profits in 2002. The recent sale of Kotak Mahindra's 11% stake in Fascel at Rs. 92 crores provides a benchmark valuation to HTMT's 19.71% effective stake in Fascel, which was acquired through share swap on merger of a privately held Hinduja Group company with itself in 2001-02.

For further information, contact Mr. Arun Kumar Senior Vice President, HTMT (9820053636).