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HTMT announces its Q3 FY’05-06 results
IT Income at Rs 76.46 crores up by 94% sequentially, IT PAT rises 75%

Mumbai, January 27, 2006

HTMT has posted a Total Income of Rs. 82.42 Crores and a Net Profit of Rs. 11.07 Crores for the 3rd Quarter ended 31st December, 2005. Income from IT at Rs. 76.46 crores represents a sequential increase of about 94%, as the third quarter saw Manila branch operations kick in. Net profits from IT for the quarter rose sequentially by 75% again due to the inclusion of Manila branch operations w.e.f October 2005.

On a y-o-y basis, total income from operations grew by 83%. Net Profits were lower as compared to last year due to absence of treasury profits realized and also the discontinuation of minimum guaranteed business from a large telecom client in Q3 last year.

HTMT keeps growing globally with every quarter in terms of its employee strength and number of customers served. HTMT’s current employee strength stands at over 6,500 worldwide as compared to just over 2000 a year ago. The total number of customers have grown to 40+ out which several of them are Fortune 500 companies.

Business Highlights
The highlights of Indian and International IT/BPO operations of HTMT are as under:

• Indian Operations
While the international call centre business continued to show excellent growth and profits, HTMT’s foray into Domestic operations also started showing strong traction from this quarter. The fast ramp up in one of the domestic telecom customers started showing in the revenue growth. As a result, revenues in this segment grew by over 45% sequentially and by an impressive 67% y-o-y, hence more than overcoming the loss in revenues caused by the discontinuance of the large telecom customer in Q3 last year.

• Philippines Operations
With the successful incorporation and setting up of the Manila branch in October 2005, HTMT’s Philippines presence and the brand grew globally. As mentioned in the last quarter, the state of the art “HTMT Cyber Park” started its operations and transition of some of the customers from the existing facility to HTMT Cyber Park was carried out successfully. The Manila operations saw rising volumes on account of busy holiday season and the branch contributed Rs 28.15 crs. by way of revenues for the third quarter with a healthy profit margin of almost 20%.

• US / Canada Operations
While the US and Canada operations continued to deliver high quality service to its customers even as volumes went up due to holiday season ramp by a leading consumer electronics customer. The profitability of these operations suffered due to seasonal ramp up costs.

• Media & Telecom Businesses
HTMT’s Media subsidiaries have are on a turnaround in their operations and in the current year the media arm IndusInd Media & Communications Ltd (IMCL) has started achieving operational efficiencies.

HTMT’s financial stake in the giant telecom player “Hutch” through its subsidiary IndusInd Telecom Network Limited (ITNL) has also been growing in value by every quarter, and is expected to reap in substantial profits to the Company on its divestment.

About HTMT
Hinduja TMT Ltd. (HTMT) is one of India's premier IT/BPO houses, focusing on information technology enabled services (ITeS) and business process outsourcing (BPO) besides IT services. HTMT is ranked among the top 15 ITES-BPO players in India employing over 6,500 people. HTMT's IT/BPO domain expertise is in the areas of Insurance, Financial services, Manufacturing, Telecom, Pharmaceutical Products, Consumer Electronics, Household Products, Energy and Utilities. With delivery centers in Bangalore, Mumbai, Hyderabad, Chennai, Manila, Mauritius, Toronto and New Jersey, the company has marketing offices in the USA, UK and Europe. HTMT has world-class infrastructure in line with global standards of environment, resources and deliverables. HTMT was one of two Indian IT companies recently selected in the list of 200 “Best under a Billion” companies by Forbes. HTMT is one of the few companies in the BPO business that has output quality very close to six sigma standards and has set its eye firmly on a continuous improvement program. HTMT has been assessed for SEI CMM Level 4 for software development and is also ISO 9001:2000 and BS 7799 compliant.

About Hinduja Group

The Hinduja Group is one of the largest transnational business conglomerate in the world with diversified operations. Founded in 1914 by Shri P.D. Hinduja, the Group provides wide range of products and services worldwide. The Group’s activities are divided into three core areas such as, Investment Banking, Global Investments and International Trading. The Hinduja Group is quick to grasp new opportunities and is expanding its investments and advisory services across international markets. As a part of the Global Investments the Group owns stakes in Automobile, Information Technology, Media & Entertainment, Banking and Finance, Energy & Chemicals and Real Estate.

For more information please contact:

Mr. Yagnesh Sanjrajka
Global Chief Financial Officer,
Hinduja TMT Ltd. Bangalore
Contact Ph No.
080-25733215 / Mobile: 9945604228

Ms. Sharmila Banerjee,
Vice President (Corporate Communications),
Hinduja Group
Phone No.: 24960707 Extn. 208 / Mobile: 9821301212.