HTMT Reports Q1-FY 2004-05 Unaudited Financial Results
Q1 : Total Income up 11% & Net Profit up 22% on a sequential basis

Total Dividend for FY2003-04 at 75 %

Hinduja TMT posted a total income of Rs. 45.34 crores for the first quarter ended 30th June 2004, up 30% from Rs. 34.94 crores a year ago. The net profit for the period grew by 10% to Rs. 18.98 Crores against Rs. 17.23 in Q1 of 2003-04.

The Company's total income and net profit rose 11% and 22% respectively quarter on quarter on a sequential basis.

Revenues from the Company's core business of IT rose 35% to Rs. 42.83 Crores from Rs. 31.74 Crores in the corresponding quarter last year with the net profit growing by 19% in the same period.

Operational Performance
The increase in revenue was due to addition of new clients and deepening of relationship with existing clients in BPO segment who offered a wider spectrum of products. Despite pressure on margins on account of continuous ramp up of staff and infrastructure, the company was able to maintain its profitability of over 40% on the revenues by moving up the value chain.

The total number of employees in IT division of the Company was 2021 as on 30th June 2004 against 1705 on 31st March 2004. The furnishing and filling up of the new premises the Company has taken in Bangalore for additional 1400 seats are expected to be completed by 31st March 2005.

According to Mr. S. Solomon Raj, Executive Vice Chairman, "The results have demonstrated that HTMT?s focus on co-creation of value in partnership with customers, process discipline and profitability has created a company that can consistently deliver solid earnings".

Final Dividend for FY 2003-04
The Company had paid an interim dividend of 50% (Rs. 5/- per share on face value of Rs. 10/-) in March 2004. In the Board meeting held today, HTMT's Board approved the audited accounts for the year ended 31st March 2004 and proposed a final dividend of 25% (Rs. 2.50 per share on face value of Rs. 10/-).

The total dividend for the year would aggregate to Rs. 7.5 per share (75%) as compared to Rs. 7/- per share (70%) for the previous year.