HTMT Nine Month Total Income up 12% to Rs. 136 Crores ; Net Profit at Rs. 63 Crores

Global Delivery Capabilities - 5 countries, 6 locations, 3800 employees and 35 ITES/BPO customer

Mumbai, January 31, 2005:

Hinduja TMT Limited (HTMT) revenues for the nine-month period ended 31st December 2004 has increased by 12% to Rs. 136.09 Crores against Rs. 121.69 Crores in the corresponding period of the previous year. Increase in staff costs on account of continuous ramp-up in the company’s claim processing business coupled with discontinuation of an inbound call centre contract during the third quarter restricted the nine month net profit growth to 4%, at Rs. 62.70 Crores.

Sequentially over second quarter of the current financial year, total Income for the third quarter ended 31st December 2004 was up by 3% to Rs. 46.86 crores whilst the Net Profit was up by 8% to Rs. 22.68 crores.

Indian Operations

HTMT’s Indian operations are engaged in providing high end BPO services, inbound Call centre solutions and software development and maintenance services with about 2200 employees in its Bangalore & Mumbai centres. With the further deepening of relationship with its BPO clients, the BPO business continued to see strong traction and the employee base grew to touch 1500 (70% of total).

Global Operations

HTMT, in last few quarters, has been successful in changing its business model from being a India offshore centric vendor to the Global Delivery offshoring partner having capabilities to provide outsourcing services from onshore, near shore & offshore locations both in BPO and call centre. As a prerequisite to implement this strategy, HTMT had acquired Source One Communications Inc USA (SOC), controlling interest in Customer Contract Centre Inc, Philippines (c-cubed) and Source One Communications Asia, Philippines (SOCA).

These companies continue to grow their businesses by providing high quality contact centre services to several Fortune 1000 customers in different domains. Since HTMT’s acquisition, C-cubed has been able to ramp up the number of seats for one of its Fortune 100 financial services customer by 50% to 180 seats in 2004 and the same is expected to more than double in 2005. On the back of such strong ramp-ups, c-cubed’s gross revenues are expected to increase by 60% in 2005.

With similar growth prospected in the other Philippines based subsidiary Source One Communications Asia Inc, (SOCA), the acquisitions are proving out to be highly beneficial to HTMT and its vision of becoming a scale player. HTMT has more than doubled its global employee base in Information technology business during the nine month of the current year. Total number of employees has increased from 1717 as on 31st March 2004 to about 3800 as on 31st December 2004 and the ITES-BPO customer base increased to over 35.

According to Mr. K. Thiagarajan, Managing Director & CEO “With the integration of the marketing and client management services personnel of HTMT and SOC the marketing efforts have been strengthened with HTMT having started participating in the RFP’s floated by fortune 1000 customers from all four locations. These efforts are expected to result in some good client wins in the coming quarters”.