Digital revenue up by 40%

BANGALORE: Digital GlobalSoft registered a revenue growth of 40 percent year-on-year for quarter ended June 30, 2002 at Rs 101.6 crore as against Rs 72 crore. Net profit after tax grew by 44 percent at Rs 27.6 crore as against Rs 19.2 crore, a year earlier. It added 111 people this quarter.

The company’s significant contributor of revenue continues to be HP (erstwhile Compaq), with about 74 percent, while other contributors include non-HP customers billed through HP, contributing 9 percent and non-HP customers offering 17 percent of revenues. The company added a total of 48 new clients during the AMJ quarter, including 20 customers for annual maintenance contracts for products business.

In a released statement, the company has expressed geo-political risks impacting the pace of customer visits and sales cycle continuing to be long. However the pricing pressures, that was present earlier, appear to have 'leveled out'.

This quarter the company had also started its venture into the ITeS space with the launch of its Technical Support Contact Center (TSCC) earning revenues through its first contract from the parent. The company’s InfoLife business unit completed multiple new projects and set up the InfoLife development center in Bangalore, new clients signed and upgraded versions ready for launch. The telecom business unit has launched its own software product, DigiTalk.

Digital GlobalSoft, Chairman, Peter Mercury, stated "Digital continues to be a strategically important asset as its provides complementary operating strengths and a compelling business proposition both as a customer and a shareowner to its parent. International businesses are embracing initiatives that help them conduct their operations in a more efficient manner.

With this view, there is sustained increase in interest among global corporations to engage with the India offshore delivery model to obtain the proven benefits of a cost-effective outsourcing arrangement. Over the last three years Digital has achieved considerable business success, demonstrated its competence and has emerged as a front runner in the IT sector in India. We remain confident of the Company's long term business outlook and its ability to enhance value for all its stakeholders"

Digital GlobalSoft, President and CEO Som Mittal, said "Digital has, increased the level of its operating activities through continuous efforts aimed at enhancing service levels and delivery capabilities, with an intensive client centric view. Through innovative business development activities we continue to widen our customer base and invest in our people and infrastructure. Our venture in the contact center space has been successful and we expect it to continue to augment growth. Our financial performance reflects our endeavors in a difficult operating environment and though we take a conservative view on our performance, we remain confident of about our growth prospects in the long term."