Mumbai, January 20, 2004: Hinduja TMT Limited has reported an increase of 54% in its total income at Rs. 45.69 crores for the quarter ended 31st December, 2003 as against Rs. 29.61 crores in the same period last year. The net profit for Q3 rose by 37% to Rs. 22.55 crores (Rs. 16.51 crores). Sequentially, the total income grew by 11.25% and net profit by 11.04% as compared to Q2 of the current fiscal.

In the 9 month period ended 31st December, the total income at Rs. 121.69 crores grew by 48% year-on-year from Rs. 82.34 crores and the net profit increased by 29% to Rs. 60.08 crores (Rs. 46.53 crores). This performance is in line with the guidance given for 2003-2004.

The growth in revenue was due to ramp up of business from existing customers and acquisition of new clients offering high volume, high value business during the last quarter in the BPO space.

Commenting on the company's results, S. Solomon Raj, Vice Chairman said, "Our disciplined processes and very good routines of information flow have been well appreciated by our clients. The realization of constant improvement in performance metrics and co-creation of value in partnership with them have enabled us to deliver both short-term results and long term growth."

HTMT recently bagged a BPO contract from a large US Health Benefits Company, thanks to the excellent referral provided by our existing client in the same sector. The new assignment is unique in that it involves both transaction processing as well as Customer Contact Center work in the highly specialized area of health care BPO business. Training and pilot project with about 80 transaction processors in 3 modules have commenced from the 12th January 2004. The business has potential to grow similar to that of the existing client for whom 600 processors are already working and HTMT is in the process of setting up a high-end Call Center employing Medical Doctors.

HTMT has now taken on lease premises admeasuring 80,000 sq. ft. for building 1400 seat capacity at Bangalore to meet the expanding requirements of its customers including those of the new clients. This is in addition to the existing capacity of 1050 seat 52,000 sq. ft. offshore development center 'HTMT House' at Bangalore, which is now fully occupied.

HTMT has built strong operational skills and an extremely good organizational culture, which has helped in being voted as the second best employee friendly company in the recently released Dataquest-IDC BPO Employee Satisfaction Survey, next only to the first name of India off-shoring, GE Capital.

In the insurance claim processing business, HTMT is rated as the second largest in India by Business World Magazine in terms of number of processors.

As per revenue, HTMT is ranked among the top 10 BPO players in India by the Voice & Data Business Communications. The Company has received SEI CMM Level 4 and ISO 9001:2000 certification respectively for software development and processes across all segments of its business in IT services, Call Center and BPO activities.

Deloitte Touche Tohmatsu Asia Pacific Technology Fast 500 Program, 2003 has profiled HTMT as one of the most dynamic and fast growing technology companies in the Asia Pacific region.

For more information: Please contact Ms. Sharmila Banerjee, Vice President (CC) - Phone No. 2-4960707 - Extn. 208/ Mobile No. 9821301212