MphasiS BFL Annual Net Profit Increases 47% Annual Revenue Up 35%

Bangalore: The MphasiS BFL Group Consolidated net profit for the year ended 31 March 2004 at Rs 98.58 crores represents an increase of 47% over the previous year's net profit of Rs 66.93 crores. Consolidated revenues for the year 2003-04 have increased by 35%, from Rs 429.27 crores last year to Rs 580.58 crores. The Board of Directors have recommended a dividend of 30% for the year 2003-04, effectively doubling the dividend amount of last fiscal after taking into account the one for one bonus share issue during the year.

For the Group as a whole the year to 31 March 2005 is expected to continue to show high revenue and profit growth. Whilst Group revenues are forecasted to increase by 35% to 40%, profits are expected to rise by 40% to 45% in the year ending 31 March 2005. Revenues are expected to grow by over 65% in MsourcE in the year ending 31 March 2005 with on going improvements in operating profit margin levels.

Net profit for the quarter ended 31 March 2004 increased to Rs 25.13 crores, compared to the net profit of Rs 18.72 crores in the quarter ended 31 March 2003, representing an increase of 34%. The operating profit for the current quarter of Rs.24.59 crores represents an increase of 7.5% over the Rs 22.87 crores posted in the previous quarter ended 31 December 2003. However the net foreign exchange gain this quarter of Rs 1.41 crores is Rs 4.7 crores less than that of the previous sequential quarter. Revenues at Rs 158.80 crores in the current quarter have increased by 6.8% on a sequential quarter on quarter basis and have risen by 31% when compared with the same quarter last year.

Commenting on the results Mr. Jerry Rao, Chairman and Managing Director, said "We have completed another successful year as a Group and are happy to report results that have exceeded the revenue and profit guidance that we gave at the beginning of the year despite an appreciation of the rupee. While software net margins have been maintained at over 20% for the second consecutive year, the BPO services revenue and profit growth continue to be robust."

The Group added twelve new clients including one in the BPO services business. This includes an international financial services organisation, a multinational retail company and a large technology corporation.