Digital net zooms, to pay Rs 24 special dividend per share

BANGALORE, September 1: Digital Equipment India Ltd. has reported a

decline in total revenues to Rs 249 crore for the fiscal year ended June

26, 1999, from Rs 350 crore the previous year. However, the net profit

increased 98.4 per cent to Rs 54.33 crore from Rs 27.38 crore last year.

The board has recommended a special dividend of Rs 24 per share. The

total payout on account of this works out to Rs 78 crore on a paid up

equity share capital of Rs. 32.73 crore. Revenues from software services

and exports increased by 29.1 per cent to Rs 73 crore from Rs 57 crore

last year. According to the company, the decline in revenues is due to the

transition of the domestic computer products and services business.

Digital has set itself a revenue growth target at a compounded annual

growth rate (CGAR) of over 60 per cent in the next four years. This will

amount to Rs 500 crore in revenues in the year ending June 2003. The

company is also aiming to stabilize its business mix by diversifying its

revenue streams.

The company plans to extend its marketing reach by setting up offices

in the US, Europe, Latin America, Japan and Australia. Digital plans to

allocate over Rs 100 crore over the next three years towards the

development of infrastructure to support its growth plans. The investment

will be made in office campus, training centres, overseas offices, call

centres and communication networks. These investments will be funded by a

combination of cash and internal accruals.