Hinduja TMT Limited (HTMT), at its Board Meeting held today, announced its results for the first quarter ended 30th June, 2006.

HTMT’s Operating Income for the quarter increased year-on-year by 131% from Rs. 34.57 crores to Rs. 79.80 crores. Net Profit from ITES/BPO operations rose y-o-y by 229% from 2.44 crores to Rs 8.07 crores.

Sequentially, the ITES/BPO income from operations dropped marginally by 3% from Rs. 79.52 crores to Rs. 77.12 crores, while the Net Profit from these operations rose smartly from 4.08 crores to Rs 8.08 crores, a rise of 98%. This became possible due to improved profitability from various processes and various cost cutting initiatives by the management.

HTMT has been successful in acquiring and integrating companies in the ITES-BPO space in the past two years and continues to look out for more acquisitions in the USA-UK market, and is actively considering a few opportunities.

The Company, as announced on 30th June 2006, along with its wholly owned subsidiaries Pacific Horizon, InNetwork Entertainment Limited (INEL) and one group offshore company Kumbat, has entered into a Definitive Share Purchase Agreement to sell its entire shareholding in IndusInd Telecom Network Limited (ITNL), which has a 5.11% stake in Hutchison Essar Limited (Hutch) for a total consideration of USD 450 Million. Out of the total consideration, USD 407 mn is receivable by HTMT and its subsidiaries. While the transaction has been completed in respect of the overseas stake held by Pacific Horizon, the proceeds towards the remaining stake owned by the Company and INEL are expected to be received before 31st August, 2006, based on firm commitments backed by adequate financial support received from the purchaser / their nominees. Profit/Gains on sale of Investments of Rs. 204.84 crores during the quarter pertains to profits on sale of partial stake in ITNL, pursuant to the sale of Hutch stake as mentioned above.